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Value of industrial company for Zakah

Question

I have an industrial company; I want to know how to calculate Zakah? Thank you.

Answer

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger.

You should assess only the products of the company and pay their Zakaah as they are the items that are intended for trade and sale. These products are like trade goods in shops.

As regards the machines and equipments of production and the like, which are not for sale, they should not be valued (among the products) as there is no Zakaah on them. But if you had bought the company with the intention of selling it, then it is a trade commodity, and so, it should be valued and you must pay Zakaah on it.

Allah knows best.

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