Imposing zakāt on legal entities and its applications in Islamic financial institutions

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...

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Bibliographic Details
Main Authors: Mohd Noor, Azman, Haron, Muhamad Nasir
Format: Article
Language:English
Published: Brill Academic Publisher 2013
Subjects:
HG Finance
HG4001 Financial management. Business finance. Corporation finance.
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
id iium-42199
recordtype eprints
spelling iium-421992015-05-26T09:02:40Z http://irep.iium.edu.my/42199/ Imposing zakāt on legal entities and its applications in Islamic financial institutions Mohd Noor, Azman Haron, Muhamad Nasir HG Finance HG4001 Financial management. Business finance. Corporation finance. 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. Brill Academic Publisher 2013 Article PeerReviewed application/pdf en http://irep.iium.edu.my/42199/1/Dr_Azman_zakat.pdf Mohd Noor, Azman and Haron, Muhamad Nasir (2013) Imposing zakāt on legal entities and its applications in Islamic financial institutions. Arab Law Quarterly , 27. pp. 71-86. ISSN 0268-0556(P), 1573-0255(O) http://booksandjournals.brillonline.com/content/journals/10.1163/15730255-12341249?crawler=true&mimetype=application/pdf 10.1163/15730255-12341249
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HG Finance
HG4001 Financial management. Business finance. Corporation finance.
spellingShingle HG Finance
HG4001 Financial management. Business finance. Corporation finance.
Mohd Noor, Azman
Haron, Muhamad Nasir
Imposing zakāt on legal entities and its applications in Islamic financial institutions
description 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.
format Article
author Mohd Noor, Azman
Haron, Muhamad Nasir
author_facet Mohd Noor, Azman
Haron, Muhamad Nasir
author_sort Mohd Noor, Azman
title Imposing zakāt on legal entities and its applications in Islamic financial institutions
title_short Imposing zakāt on legal entities and its applications in Islamic financial institutions
title_full Imposing zakāt on legal entities and its applications in Islamic financial institutions
title_fullStr Imposing zakāt on legal entities and its applications in Islamic financial institutions
title_full_unstemmed Imposing zakāt on legal entities and its applications in Islamic financial institutions
title_sort imposing zakāt on legal entities and its applications in islamic financial institutions
publisher Brill Academic Publisher
publishDate 2013
url 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
first_indexed 2023-09-18T21:00:13Z
last_indexed 2023-09-18T21:00:13Z
_version_ 1777410572864716800

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