Zakat on Shares
Zakat Standard provisions
Clause 2/3/2 of Zakat Standard No. 35: 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 liabilities (creditors) exceed its assets.
Article 5/1/3 of Zakat Standard No. 35: Zakat is not due on public funds (the public sector) nor on insurance fund assets.
Article 2/2/3 of Zakat Standard No. 35: 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.
Who pays the Zakat?
The bank position: Under current circumstances the bank does not intend to take a mandate from shareholders to discharge Zakat on their behalf.
The shareholder position: Responsibility for paying Zakat rests with the shareholder. Zakat on shares is calculated once the threshold is met, either on its own or combined with the shareholder other cash and trade goods.
How to calculate Zakat on your shares
If the shares are held for trading
Number of shares × market value 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 (see the table below).
For the Gregorian year the Zakat rate is 2.577% in an ordinary year and 2.5775% in a leap year.
Zakat amount per share
| Year | Zakat per share (SYP) |
|---|---|
| 2007 | 7.37 |
| 2008 | 7.08 |
| 2009 | 4.73 |
| 2010 | 18.82 |
| 2011 | 2.60 |
| 2012 | 2.16 |
| 2013 | 3.27 |
| 2014 | 4.38 |
| 2015 | 6.64 |
| 2016 | 11.79 |
| 2017 | 12.015 |
| 2018 | 9.73 |
| 2019 | 9.23 |
| 2020 | 17.781 |
| 2021 | 30.45 |
| 2022 | 33.64 |
| 2023 | 117.08 |
| 2024 | 39.35 |