About CHAM BANK
Jurisprudential rules on Zakat on shares
Zakat Standard No. 35 — Clause 2/3/2: profit and loss
Zakat is not conditional on the institution being profitable, nor is it waived because the institution is loss-making; Zakat remains due unless the institution's liabilities (creditors) exceed its assets.
Zakat Standard No. 35 — Article 5/1/3: public funds and insurance funds
Zakat is not due on public funds (the public sector) nor on insurance fund assets.
Zakat Standard No. 35 — Article 2/2/3: the threshold and commingling
The Zakat threshold (nisab) is 85 grams of pure gold or its equivalent in paper and metal currency.
Standard No. 9 (Financial Accounting for Zakat) further provides that banks may discharge the religious obligation on behalf of equity holders on the basis of commingling; where shareholders authorise management to pay Zakat, it is discharged on that basis.
The bank's position
Under current circumstances the bank does not intend to take a mandate from shareholders to discharge Zakat on their behalf.
The shareholder's position
Responsibility for paying Zakat rests with the shareholder. It is calculated once the shares meet the threshold on their own or combined with the shareholder's other cash and trade goods.
How to calculate Zakat on your shares
If the shares are held for trading
Number of shares × market value per share at the time Zakat falls due × 2.5775%.
If the shares are held for growth
Number of shares × the per-share Zakat amount for the relevant year, per the table below.
For the Gregorian year the Zakat rate is 2.577% in an ordinary year and 2.5775% in a leap year.
| Year | Zakat per share (SYP) | Year | Zakat per share (SYP) |
|---|---|---|---|
| 2007 | 7.37 | 2016 | 11.79 |
| 2008 | 7.08 | 2017 | 12.015 |
| 2009 | 4.73 | 2018 | 9.73 |
| 2010 | 18.82 | 2019 | 9.23 |
| 2011 | 2.60 | 2020 | 17.781 |
| 2012 | 2.16 | 2021 | 30.45 |
| 2013 | 3.27 | 2022 | 33.64 |
| 2014 | 4.38 | 2023 | 117.08 |
| 2015 | 6.64 | 2024 | 39.35 |