Question: We have a garment manufacturer and we have been working on ladies' wear. Our firm is a limited company with a hundred employees and also a machine park. We have cars that we have been using in our business and rental income from real estate which are registered to our company. And also we have investments that we have been continuing to pay for. The profit gained from our commercial activities is not distributed, only monthly salary is paid to the shareholders. How should we calculate zakat of our company? Is it necessary to calculate the zakat for the salaries of shareholders?
The salaries would be included in those people’s personal accounts, so do not consider them in zakat calculation of your company. Calculate the company’s current assets accounts and subtract debts from it, if anything remains, fortieth of the residual value has to be paid as zakat.
Current assets consist of receivables and trade goods that are manufactured or semi-manufactured.
The debts consist of all kinds of commercial debts and also taxes.
The fixtures and equipments of the company and the consumer goods, like food or energy which are bought to consume, not to sell, are not considered in zakat calculation.