ZAKAT ON INCOME AND

ZAKAT ON SHARES

Zakat on Income
Additional payment receive by an individual from their employer or
individual itself in the form of physical energy or professional
employment or physically for specific day, month and yearly also been
required to pay zakat.
Prof.Dr.Yusuf al-Qaradawi and Dr.Hussein Shahatah, pay zakat and
income termed Mustafad Zakat al-Mal which is sourced from Zakat
salary and professional income.It is the reward of service with an
employer or an individual or institution.

Meaning :
To all men who are all faithful to Allah . Give out the best what you
have work for and this is part what comes from the earth that we have
given you."
(Surah Al-Baqarah : Ayat 267 )

Condition
Income will include :

Salary
Arrears of pay
Various allowances (car, meals, meetings)
Income
Others (including bonus or something that can be counted as income such as
royalties, rent and other)

Pay and free income must be counted based on the following conditions:

Islam
Independent
Complete ownership
Nisab
Haul
Lawful income

CALCULATION
OF ZAKAT
INCOME

METHOD 1

METHOD 2

Using gross
income (without
deduction) 2.5%
on gross income
per year.

Using the net

income(Income
year less
allowable
expenses per
year) x 2.5%

Method 1

Method 2
(A) GROSS INCOME PER YEAR

(RM)

Basic salary

42,000

Various allowances

10,000

Other income

6,000

Total income

58,000

(B) (-) HAD KIFAYAH PER YEAR

(RM)

Himself

10,850

Wife

6,000

His parent ( 2 person ) ( RM2300 each )

4,600

His daughter ( 7-11 years old ) ( 2 person ) ( RM 2,200 )

4,400

His daughter ( 0-6 years old ) ( 1 person ) ( RM 1450 )

1,450

(C) ( - ) ADDITIONAL HAD KIFAYAH

( RM)

Disable children ( no example ) ( RM2,400 each )

Chronic deseases ( no example ) ( RM2,400 each )

OTHER DEDUCTIONS

(RM)

EPF contributions

5,170

Contributions fund for HAJJ

2,000

Total deductions ( B + C + D )

34,470

THE AMOUNT OF ZAKAT

(RM)

A - ( B + C + D ) = E ( More Than Current Nisab )

Nisab For 2015 = RM11,145

23,530

Zakat Per Year ( RM23,530 X 2.5 %)

588.25

Zakat Per Month ( RM588.25 / 12 )

49.00

Zakat On Shares
Dr Yusoff al-Qardhawi in his book Fiqh-Zakat defines shares as valuable
papers or commodities that are traded in the market such as Bursa
Malaysia.
Zakat which is given out for investment which has reach its time limit
and minimum value.

O you who believe! spend (benevolently) of the good things that

you earn and or what We have brought forth for you out of the
earth, and do not aim at what is bad that you may spend (in alms)
of it, while you would not take it yourselves unless you have its
price lowered, and know that Allah is Self-sufficient, Praiseworthy.

Condition Zakat Of Shares

Include only those shares and bonds that you owned on the last day
of the previous zakat year, and use the market value as of that date.
Purchases made during this year should not be included in this.
Include all shares and bonds that you owned on the last day of the
current zakat year, and use the market value as of that date.
Include only those earnings that occurred within the zakat year,
then exclude that portion from the earnings.
Include all associate expenses, including estimated income tax on
earnings and capital gains.

Types Of Zakat On Shares

I. Share that is still owned until the end of
haul.
*The calculation of Zakat is 2.5% on the
smallest price or cost.
Listed companies (from Syariah Councils)
Shares owned at the end of haul period
2.5 percent on the lowest market price of the share

Shares traded during the haul period

2.5 percent on the net profit (capital gain)

Sample calculation for 200 lots of share :

1 lot : 100 units
1 lot : RM1.00
200 lots :
= 200 lot x RM1.00
= RM20,000.00
Zakat :
= RM20,000.00 x 2.5%
= RM500.00

II. Share that always trade in the duration of haul (a

year)
*The calculation is 2.5% on the value of share after
deducting the expenses cost (profit).
Non-listed companies (from Syariah Councils)
Difficulties to determine the market value
Zakat is calculated based on the dividend
received

Sample of calculation :
Total value of selling share expenses cost (profit)
= RM500,000 RM400,000
= RM100,000.00
Zakat :
= RM100,000 x 2.5%
= RM2,500.00