Utama – Zakat Malaysia

Investment Zakat

Investment Zakat

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Investment Zakat Nisab

Calculate Investment Zakat

Explanation

Investment Zakat

In an effort to generate income and accumulate wealth, one of the ways is through investment activities. Investment is an activity where a sum of money is placed in a business activity with the hope that these funds will grow and produce large profits in the future. Therefore, if it is profitable, of course it should be charged Investment Zakat for Muslims because profit from investment is also a type of income.

Usually, an investment is also a long-term activity, where the return from this investment may not give a profitable return until after several years. In fact, investment is one of the ways that is often considered if someone really wants to build wealth. 

Investments include investments by individuals, governments, groups such as cooperatives, pension funds and business or corporate investments. For investment zakat payment purposes, this category includes all types of investments. It may be an investment as an individual or on behalf of a company, in a type of investment such as stock, bonds, crypto and commodities – that is investment in materials used in human daily life such as coal, crude oil, gold, wheat and so on. 

Frequently Asked Questions

Argument of Obligatory Zakat Investment

Adakah terdapat dalil bagi kewajipan membayar zakat pelaburan? Tentu sekali ada kerana perbuatan membuat pelaburan itu hampir sama seperti sesebuah perniagaan ataupun pemilikan harta. Dalil yang sering dirujuk bagi perkara zakat pelaburan, termasuk seperti berikut:-

The word of Allah SWT, which means:
"O you who believe! Spend (in the way of God) a part of the results of your good efforts, and a part of what We brought out of the earth for you. And do not deliberately choose the bad from it (then you donate or you make it a zakat gift), even though you yourself will never take that bad (if it is given to you), except by closing your eyes to it. And know, verily Allah is Rich, and always Praised.
(Surah Al-Baqarah, verse 267)

According to Imam Mujahid, one of the translators of the Quran, when interpreting this verse he thought it referred to business. This is stated by Imam Ibnu Katsir in his book, which means:

"Mujahid said: What is meant here refers to business".
(Tafsir Ibn Kathir 1/697)

Meanwhile, it was also stated by Imam at-Tabari that there are verses that refer to business, or from gold and silver. This matter is stated by him in his book of interpretation:, meaning: "Issuing zakat from the results of your good efforts with your mastery whether from business or manufacturing from gold and silver". (Refer to Tafsir al-Tabari 5/555)

Nisab And Investment Zakat Rate

Because the investment usually gets funds from many individuals, then how to count the nisab is based on the total value and not according to the respective parts. All joint investment properties are counted as one unit even if there are investors who do not have enough nisab. 

There is evidence for this matter based on the words of the Prophet SAW, which means: 

"Do not combine different properties and do not separate accumulated properties to avoid (pay more/receive less) from zakat". (Hadith Narrated by al-Bukhari) 

There is an explanation from Imam al-Nawawi on this matter, which means:

"Each of the two mixed properties will have an effect on zakat, so the two mixed properties or many properties are considered as one property value. (Refer to the Book of Raudhah al-Tolibin 2/170)

However, the rate of zakat that must be paid is based on the value of shares owned by an individual only. The rate charged is the same as property zakat which is 2.5% of the total number of shares owned. 

However, if an investor owns holdings for different types of zakat, only holdings that have had enough haul (shares that have been owned for a year) are required to pay zakat. 

Calculation of Long and Short Term Stocks

For shares purchased to obtain dividends resulting from long-term holdings, the method of calculating the zakat rate is as follows:-

Number of shares owned = 100,000 units

Value per share unit = RM2.50
Zakat to be paid:
=(RM2.50 x 100,000 units) x 2.5%

=RM250,000 x 2.5%
=RM6,250

For shares bought for short-term trading, the zakat rate is added to the profit obtained from these sales activities.

The way to calculate zakat for short-term investments is as follows:-
Number of shares owned = 100,000 units
Purchase cost = RM2.00
Selling price = RM2.50
Zakat to be paid:
=([RM2.50 – RM2.00] x100,000 units) x 2.5%
=RM50,000 x 2.5%
=RM1,250

It can be seen here how there is a difference in the calculation of zakat rates for long-term and short-term investments. For short-term investments, even if the share ownership is not enough haul, but the profit obtained is a part of the investor's income or profit for the year.

Meanwhile, for long-term investments, the calculation of investment zakat rate is not subject only to profits or dividends in that year. This is because the ownership of the shares is a type of property or asset for the investor. Therefore, the payment rate is charged on the entire unit owned.

In any case, it is important for us to purify our property and gain God's approval in our efforts to accumulate wealth. Therefore, make sure you are not negligent in paying investment zakat so that our wealth is always blessed.

ASB Investment Zakat Calculation

The calculation of zakat on ASNB investments must follow the latest method, in line with the fatwa decision issued by the Selangor State Fatwa Committee dated 3 November 2020. Therefore, zakat assessment on ASNB investments is mandatory on all investment assets, dividends and bonuses as per the following method :

This is effective from February 15, 2021.

Calculation Method of Zakat Qada on ASNB Investments

For investors who wish to pay qadha zakat on ASNB investments, they must follow ASNB's investment zakat assessment method for financial years prior to 2016 to 2019, which is according to the syariah-compliant percentage rate for the relevant financial year as per the following method:

A summary of ASNB's sharia-compliant investment rates for each financial year is as follows:

The ASNB trust share zakat assessment method for a given year must be in accordance with the Sharia-compliant percentage code for the relevant financial year.

The ASNB trust share zakat assessment method for the financial year (tk) 2019 is as follows:

Calculate & Pay Zakat

Income Zakat



Business Zakat



Savings Zakat



Investment Zakat



Gold Zakat



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EPF Zakat



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Paddy Zakat



Crypto Zakat



Qadha Zakat



Fitrah Zakat

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