Zakat on Wealth Guide | Zakat Platform

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Zakat on Wealth — Guide

Approved Sharia rulings on Zakat for monetary assets, metals, and trade goods

First: Combining Gold and Silver to Complete the Nisab

Adopted Rule:

Gold is combined with silver to complete the Nisab, because the underlying reason (illah) is their monetary function, which they share. The combined total is treated as a single unit when calculating Zakat.

Calculation Method:

1 Calculate the ratio of the gold owned to the gold Nisab.
2 Calculate the ratio of the silver owned to the silver Nisab.
3 Add both ratios together. If the total reaches 1 or more, Zakat becomes obligatory.

Second: Nisab for Contemporary Monetary Assets

Adopted Rule:

The gold Nisab is used as the benchmark for calculating the Nisab of monetary assets.

The Nisab is calculated based on the gold price on the day of payment.

The prevalent gold purity in the country is used (typically 21-carat in Iraq), making the Nisab equivalent to 85 grams of 21-carat gold.

Third: Debts and Their Effect on Zakat Calculation

Debts owed to you:

Current debts expected to be repaid: Added to your wealth and zakated along with your other assets.
Deferred or unlikely-to-be-repaid debts: Zakated only upon receipt, and for one year only.

Debts you owe (liabilities):

The amount of current debt is deducted from cash and trade goods, then Zakat is due on the remainder if it reaches the Nisab.

Fourth: Undeveloped Land and Real Estate

Land and real estate purchased with the intention of investment or wealth preservation are considered trade goods. They are valued at the end of each lunar year at the quick-sale price (minimum market value), and 2.5% is paid as Zakat.

Fifth: Zakat on Income-Generating Assets (Real Estate, Factories, Machinery)

"There is no Zakat on the assets themselves, only on their income."

Rental Properties

Zakat is due on the net rental income upon receipt. No lunar year cycle (hawl) or Nisab is required at the time of receipt (yield-based Zakat).

Factories & Workshops

Machinery and equipment are not subject to Zakat. Products prepared for sale are zakated as trade goods.

Heavy Machinery

Includes vessels and excavators. No Zakat on the asset itself; Zakat is due on income only, per the rules above.

Summary: Zakat on Wealth Guide

Asset Type	Nisab & Sharia Rule
Gold & Silver	85g gold or 595g silver — combined to complete the Nisab.
Monetary Assets	Value benchmarked to gold Nisab; 2.5% due annually.
Investment Assets	Zakat on net income (yield) only upon receipt; no Zakat on the asset itself.
Land for Savings	Valued annually at quick-sale price (minimum) and zakated as trade goods.

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