If you have a business, all stock in trade is liable for zakat, including land and real estate that has been bought for the purpose of resale.
Raw materials and goods produced for sale are also subject to zakat. The buildings, machinery, vehicles and so on that are essential for the business are exempt from zakat.
Example:
Amir owns a biscuit factory. When calculating the zakat that the business owes, he takes into account the monetary value of all the biscuit ingredients he has in stock and all the unsold biscuits stored in storage. The factory building, machinery and equipment are not taken into account when calculating zakat.
Input your search keywords and press Enter.
