Zakat on a Business Jointly Owned by a Muslim and a non-Muslim

Answered by Shaykh Hamza Karamali, SunniPath Academy Teacher

Question:

AsSalaam Alaykum Sidi,

If a company were jointly owned between muslims and non-muslims, how would zakat work then? Say the muslim owned 70% of the business and the non-muslim owned 30%, how would zakat be paid?

Jazakum Allah khair.

Answer:

In the Name of Allah, Most Gracious, Most Merciful

[This answer was originally posted as a response to a student question in the course, The Reliance Explained – Part 2 (LAS212).]

In the Name of Allah, Most Merciful and Compassionate

Partners only pay zakat jointly if both are "people from whom zakat is due." (ahl al-zakat) [1] Zakat is not due from non-Muslims, and hence his share of the business is not factored into the zakat calculations. [2]

Applying this rule to your question, if a Muslim owned 70% of a business, and a non-Muslim owned 30%, the Muslim would only need to pay zakat on 70% of the trade goods.

And Allah Most High knows best.

Hamza.

[1] Sa`id b. Muhammad Ba `Ashin, Bushra al-Karim bi Sharh Masa'il al-Ta`lim, Kitab al-zakat, Fasl wa la yajuzu akhdh al-ma`ib min dhalika

[2] Ibid.

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Zakat on a Business Jointly Owned by a Muslim and a non-Muslim

Question:

AsSalaam Alaykum Sidi,If a company were jointly owned between muslims and non-muslims, how would zakat work then? Say the muslim owned 70% of the business and the non-muslim owned 30%, how would zakat be paid?Jazakum Allah khair.

Answer:

Now What?

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AsSalaam Alaykum Sidi,

If a company were jointly owned between muslims and non-muslims, how would zakat work then? Say the muslim owned 70% of the business and the non-muslim owned 30%, how would zakat be paid?

Jazakum Allah khair.