Alqanoni

Guidelines

Para. 2.2.5
Status unknownSaudi ArabiaRegulation

Issued by Zakat, Tax and Customs Authority (ZATCA)

Fourth Condition: Elapse of a full lunar year (Hawl): If the zakat ability of wealth, stability of wealth ownership for the Zakat payer, the wealth has reached the amount of quorum have been established, the wealth shall still be not subject to zakat until a full lunar year (354 days) passes. Ibn Omar reported about Prophet Muhammad: ((No Zakat (is to be paid) for a wealth until Hawl (i.e., Zakat year) has passed) [Narrated by At-Tirmidhi] On the authority of Aisha (No Zakat (is to be paid) for a wealth until Hawl (i.e., Zakat year)) [Narrated by Ibn Majah] The payment of Zakat for gold, silver, money, trade offers and livestock is conditional on the elapse of a full lunar year (Hawl), as a form of mercy to the owner who should see profit and growth in his wealth before the payment of Zakat. Meanwhile, the payment of Zakat for agricultural produce (grains and fruits) is not conditional on the elapse of the Hawl, but upon reaping thereof, since growth can be immediately reflected by the budding of crops and fruits. Zakat is due on property after the passing of 12 lunar months according to the Hijri calendar. The Committee issued its fatwas: The calculation of Zakah is made upon the elapse of 12 lunar months, Allah says: (They ask you (O Muhammad) about the new moons. Say: These are signs to mark fixed periods of time for mankind and for the pilgrimage) (19665) 2.2.5.1 Zakat for Acquired Wealth Acquired Wealth is defined as: The property owned by a Muslim individual during the Hawl. If a Muslim individual acquires wealth that crosses the quorum on 1/1, then receives new wealth on 1/7. Such new money is called Acquired Wealth. Is the Hawl of the new money the same as the Hawl of the first wealth on 1/1? Or does it start a new Hawl on 1/7? Answer: Acquired Wealth comes in two classes: First Class: If there is an increase resulting from the growth of the wealth itself, such as the profit generated from trade, or the product of grazing livestock, then the Hawl of this increase is the Hawl for its principal. Second Class: Acquired Wealth is newly existing, i.e., not the profit generated from trade, or the product of grazing livestock. in this case, a Zakat payer has the option to: Pay its due Zakat in advance with the wealth that firstly reached quorum; or calculate an independent Hawl for it and pay its Zakat upon its elapse. A common example for this class: Employee salaries that are traditionally delivered on a monthly basis. In this case, a Zakat payer may make Zakat for all the year’s wages upon the receipt of the first month’s wage, to be paid one time in the whole year. 3 Zakat Categories

The Arabic text is the legally binding version. The English translation is provided for guidance only.

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