Imposing zakāt on legal entities and its applications in Islamic financial institutions
Zakāt (obligation to donate a certain proportion of wealth each year to charitable causes) is imposed on particular assets owned by Muslims. However, as there has been a tremendous development in trade locally and globally, and with the growth of Islamic banking and finance and the increased dema...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Brill Academic Publisher
2013
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/42199/ http://irep.iium.edu.my/42199/ http://irep.iium.edu.my/42199/ http://irep.iium.edu.my/42199/1/Dr_Azman_zakat.pdf |
| Summary: | Zakāt (obligation to donate a certain proportion of wealth each year to charitable causes) is
imposed on particular assets owned by Muslims. However, as there has been a tremendous
development in trade locally and globally, and with the growth of Islamic banking and
finance and the increased demand for Sharīʿah-compliant services and supplies, a number
of contemporary Muslim scholars have suggested that zakāt be imposed on legal entities.
This implies that the calculation is based on the company’s net asset value. Based on this
proposition, one need not know the identities of the shareholders: i.e., whether they are
government-linked companies, foreign parent companies, individual proprietors, Muslims
or non-Muslims. This article aims to examine the validity of imposing zakāt on legal entities
from the Sharīʿah’s perspective. |
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