Download A Guide to Accounting Zakat

A Guide TO
Zakat Accounting
Prepared by
Dr. Hussain Hussain Shehatah
Professor of Accounting
Faculty of Commerce, Al-Azhar University
Consultant to Al-Zakat Funds
‫بسم هللا الرحمن الرحيم‬
In the Name of Allah,•
The Most Merciful,The •
Most Compassionate
Zakat in The Holy Quran
: ‫قال هللا تبارك و تعالي‬
“... ‫” و أقيموا الصالة و أتوا الزكاة و اركعوا مع الراكعين‬
) 43 ‫ اآلية‬: ‫( سورة البقرة‬
Allah says : “ and be steadfast in prayer
,practice regular Zakat and Bow down
Your heads with those who down …..
( Al-Baqara- 43 )
‫‪Zakat in THe Sunnah‬‬
‫قال رسول هللا صلي هللا عليه وسلم ‪:‬‬
‫” بني اإلسالم علي خمس ‪ ,‬شهادة أن ال إله إال هللا ‪ ,‬وأن‬
‫محمدا عبده ورسوله ‪ ,‬وإقام الصالة ‪ ,‬و إيتاء الزكاة‬
‫‪ ,‬وحج البيت ‪ ,‬و صوم رمضان ”‬
‫( رواه البخاري ومسلم )‬
Zakat in Sunnah-cont.
The Messenger of Allah”( peace be upon Him )
said : “ Islam has been built on five pillars ,
Testifying that there is no God but Allah and
Mohammed is the messenger of Allah,
performing the prayers, paying the Zakat,
making, the pilgrimage to the house of Allah ,
and fasting Ramadan “
( Buhkary and Muslim )
Zakat Accounting Topics
( Contents of the Book )
This Book deals with Fiqh and Accounting
of Zakat (Alms) according to Islamic
Jurisprudence . It consists of the following
Topics :
- Zakat Rules.( Fiqh ) .
- Zakat Accounting Rules( Principles ).
- Zakat Accounting Statements.
- Zakat Duers.
Chapter One
Zakat Rules
(Zakat Fiqh)
Zakat Meaning
Zakat means , in Language , :
Blessing, Purity, Growth and
Uprightness .
It means in Shariah :a defined
allocating amount from a defined
money for an assigned people .
Zakat and Sadaqa
Zakat may called Sadaqa , Allah says
:” of their properties ( money) take
Sadaqa , that may Purify and sanctify
them and pray on there behalf……..”
‫“خذ من أموالهم صدقة تطهرهم و تزكيهم بها وصل عليهم‬
* -The Word Sadaqah in this verse
refers to Zakat . But it sometimes refers
to Charity .
*-Accordingly , every Zakat is a
Sadaqa
And a Sadaqa may be a
Zakah or a Charity .
Zakat Rules
‫أحكام الزكاة‬
Muslim Scholars have summarized
Zakat Rules as follow :
- Zakat is a Farida from Allah (obligatory ).
- Zakat is a Financial Worship .
- Zakat is a Believe .
- Zakat is Compulsory to Muslims.
- Zakat is Due to an assigned Receivers.
- Zakat is Annuity , except Zakat on Plants
and Fruits , and on Rakaz .
- No Zakat until Wealth exceeds Nisab
- No Duality in Zakat.
- Zakat affairs are the Responsibility
of Government.
Due Zakat does not obsolete .
- Zakat is Obligatory to Muslims any
where in the world.
-The Muslim who denies the Obligatory of Zakat is a Non-believer ( Kafir) , and who refuses to pay it , is a
Disobeyer.
-
-
-
-
Zakat and Tax Differences
-Zakat is a financial Worship ,and a pillar
of Islamic Religion , but Tax is imposed
by the Government by Low ragardless
to Religion.
- Zakat is based on Religious and Ethical
Values ,but Tax mostly ignores such
Values and based on monetary factors .-
- Zakat is calculated according
to Fiqh Rules , but Tax is
calculated according to
Governmental Rules.
-
Zakatable wealth is gained from Good and Halal Sources, but
Revenues and Tax
Incomes may be earned from
Non-Halal and Worse Sources
from the sight of Islam Rules .
-
- Zakat Rules are stable and permanent
for each Time and place because they
excreted from Quran and Sunnah ,while
Tax Rules are variable.
- Zakat purifies soul and money ,while
Tax does not .
Accordingly ,:
Tax is not a Zakat
Zakat is not a Tax
Chapter Two
Zakat Accounting
Rules
Zakat Accounting Meaning
It mans the calculation,
reviewing and announcing of
Zakat on money .It is
governed by a group of
Accounting rules, extracted
from the sources of Islamic
Shari’ah,
Zakat Accounting Objectives
-
They are as follow:
Determining the Zakat Base .
Calculating the Due amount of Zakat .
Preparing Zakat Statements and Reports .
Distributing Due Zakat amongst
its Duers.
ZAKAT ACCOUNTING RULES
( PRINCIPLES )
Zakat Accounting Rules
are as Follow:
1. The Lunar
Year
Zakat is calculated according to the lunar
year. Counting starts when the amount of
money attains the Nisab (the minimum
amount on which Zakat should be paid).
This includes all kinds of Zakat except
Zakat on agriculture, fruits, mineral assets
and Rikaz (metals found in the
earth).
2. Independence of each
Year:
Each Zakat year is an independent one,
and Zakat on a given amount of money
should not be more than once in the
same year. Duality should be avoided.
The Prophet (Peace be upon him) said:
“No
duality
in
Zakat
giving”.
3
Actual
Growth:
or
Assumed
Actual or assumed growth of an
amount of money is a condition for
any Zakat is to be given from this
money. Therefore, Zakat is not due
on fixed assets or things for personal
use. This is because the condition of
actual or assumed growth would not
be met.
4. Zakat Base should reach
Nisab
Zakat is due on money which is
abounding (more than basic needs). No
Zakat is due for little amounts of money.
The amount of money should reach the
Nisab. This guarantees that only those
who have the capacity of paying will be
obliged to pay.
5. Calculating Zakat on the Total
or Net Zakatable Money
For every kind of money or activity
there is a rule for calculation Zakat
which is due on it. Some are calculated in
relation to the total amount and others
are calculated in relation to the net
amount ( Property).
6. Grouping Money of the Same kinds
together as Zakatable Base:
It is permissible to group cash money of
wealth to cash money available from
offers of commerce and other gained cash
money, so that for all these monies there
would be one Nisab and one Zakat Year.
7. Evaluating Zakatable Money
according to the Current value .
Evaluating cash money of wealth and
cash money from offers of commerce to
define the due Zakat should be according
to the current value at the time of paying
Zakat. They should not be evaluated
according to the historic value, cost or
market, whichever is less.
Equations of
calculating Zakat
They are as follows :
Receptacle of Zakat =
Zakat Base =
Zakatable Money .2
.1
( Assets),( Less ) - Zakatable Liabilities
which are due to be paid at the
moment.
.3
2. Zakatable
Money( Assets )=
Assets which meet the conditions of
obligatory Zakat.
3.
Zakatable Liabilities =
which are due in
short time.
4. Due
Zakat = Zakat Base By Zakat Rate
Conditions of Zakatable Money
They are as follows:
a. It should be a full ownership.
b. It should be Growing actually or
assumed
c. The completion of one Lunar
Year except
for Zakat on
agriculture, fruits,
mineral
wealth or Rikaz in earth.
d. Not other kind of Zakat has been
paid on the same
Zakatable Money within the
same year.
e. Zakatable Money should
exceeds Basic
Needs.
f. Zakatable Money should not
include a Debt which is due
at the time.(short term Debts)
g. Zakatabe Base should reach the
(Nisab).
Conditions of Zakatable
Liabilities
They are Short Term Liabilities which are
due payment according to the following
conditions :
Liabilities should be related
to
the
activity.
.a
.b
b. Liabilities should be due payment
during the coming
year
.
c.
Liabilities
should
.
be legally
permissible
Nisab = the minimum amount of
Due Zakat
It is equal to 85 grams of pure gold. A
gram should be evaluated according to
current prices at the time of paying
Zakat in the country in which the
original money is located.
The Amount of Due Zakat
When Zakat Base money once reaches
the Nisab , the Due Zakat is calcuated as
follow : Zakat Base x the price of Zakat.
The Price of Zakat =
Zakat Rate
It varies according to the kind of
money and activity. It ranges
between 2.5% and 20% of Zakatable
Base.
Executive Procedures for
Calculating Zakat
Steps of Calculating Zakat
( Zakat Accounting Procedures )
Zakat should be calculated according
to the following
steps:
1. Defining the date completion the
Lunar year. This date varies
according to the circumstances
of the Zakat giver ( Payer).
With the exception of Zakat on
agriculture, fruits, minerals and
minerals in the earth. In these cases
Zakat should given at time of harvest
or the acquisition of the minerals.
In the case of defending the Lunar year
for the first time, the date of
beginning and the date of completing
should be defined according to the
date
of
reaching
the
Nisab
amount.
2. Different Monies owned by the Zakat
Payer should be assessed at
the end of year according to
the rules of Zakat.
From this money it should be
defined on which Zakat must
be given. They are called
Zakatable Money (
Assets).
3. Assessment of Taxable Liabilities
(deductions) which are due to be
deducted from Zakatable money
according to the rules of
Zakat.
4. Defining the receptacle of Zakat
( Zakat Base ) by the deduction of
Due Liabilities from Zakatable
Money by the following
equation.
The receptacle of Zakat ( Zakat Base ) =
Zakatable Money – Due
Liabilities.
5- Calculating the Nisab as mentioned
before. Each kind of Zakat has a
special Nisab .
6. A comparison should made between
the Zakat Base, defined in
step 4
above, with Nisab defined in step 5.
So as to know whether Zakat is due
or not. If the Zakat Base has reached
the amount of Nisab, then Zakat
would be Due.
7. Define the amount which should be
taken from the receptacle of Zakat
( Zakat Base ), it is as
Percentage % , it
a
is culled the
Price of Zakat ,
It varies from 2,5% to 20% of
Zakat Base
8. Calculating the amount of Zakat by
multiplying the amount of the
receptacle by the amount of the
price (or percentage) of Zakat. The
result should be the amount of due
Zakat.
9. Define who pays the due Zakat a
follow :
a. For individuals and personal
establishments:
The individuals or the owner should pay the
due Zakat.
b. For partnership:
The amount of the due Zakat should
be divided between the partners,
each according to the percentage
ofhis share in the capital of
partnership.
c. For investment companies:
The amount of the due Zakat should
be divided on the number of
shares to know the amount of
Zakat due on each share. Each
investor should then pay Zakat
according to his ownership of
shares.
d. For partnerships of labor and
capital (mudarabah Sahr’iyyah) :
The laborer (Mudarib) pay Zakat
according to his share of profits.
Whereas the financier (Mumawwil)
should pay Zakat on the capital and
the
profit
less
the
laborer’s
share.
10. Zakat Amount should be
distributed according to its duers
in the light of the rules of
Islamic Law
(Shari’ah).
It is permissible to give Zakat to
institutes or committees of Zakat to
redirect the funds in their due
activities and persons according to
Islamic Law (Shari’ah).
Zakat Duers
Zakat Funds should be spent as mentioned
in the Holy Quran:
‫يقول هللا سبحانه وتعالي ‪:‬‬
‫” إنما الصدقات للفقراء و المساكين والعـاملين‬
‫عليها و المؤلفــة قلوبهم وفـــــي الرقـاب و‬
‫الغارمين وفي سبيل هللا وابن السبيل فريضة‬
‫من هللا وهللا عليم حكيم ” ( سورة التوبة ‪) 60 :‬‬
“ Zakat are for the Poor, and the Needly,and
Those Employed to administer the funds, for
those whose hearts have been recently
reconciled to Truth , for those in Bondage
and in Debt , In the cause of Allah , and
the Wayfarer , Ordained by Allah , and
Allah is full of knowledge and Wisdom . “
( Al Tawbah -60 )
The Duers of Zakat as mentioned in this
Verse are as f0llow :
1. The poor.
2. The needy people.
3. Those employed to administer the
Funds.
4. Those whose hearts have been
recently reconciled to Truth
5. Those in Bondage.
6. Those in Debt.
7. In the cause of Allah.
8. The wayfarers.
We well discuss this in more
detail in chapter four
Zakat Accounting
Tools and Methods
In order to calculate Zakat on money, an
accountant needs the following tools and
methods:
1. General Balance Sheet (Financial Position)
made on the date of calculating
Zakat.
2. Final Accounts for the ended year, on
which
Zakat
is
to
be
calculated.
3. Clarifications concerning the Balance
Sheet and the final accounts, such as:
- Current value of Zakatable assets.
- Bad and good debts to be baid.
- Bad and good debts to be collected.
- Revenue from fixed assets which are
for collecting or for investment.
- And other necessary clarifications
concerning
calculating
Zakat.
4. The price of Gold at the time when
paying Zakat is due, in order to
calculate the
Nisab
5. Different Monies possessed by the
Zakat giver should be grouped if
they
are
of
the
same
kind.
6.Different contemporary Fatwas
concerning Zakat.
7. The guide for calculating Zakat.
8. Other accounting tools and methods
which may be useful for calculating
Zakat.
The diagram in the following
summarizes the procedure for
calculating
Zakat
on
money.
Diagram for calculating Zakat
Starting Point
)1(
)2(
Prepare the general Balance Sheet and
clarifications on it
Define and assess the Zakat assets
(3)
Define and assess liabilities which must be met
(4)
Define the receptacle of Zakat by deducing
(3) from (2)(Zakat Base )
(5)
Define the Nisab according to the price of gold
(6)
Compare the receptacle of Zakat with the Nisab
(7)
Calculate the Due Zakat if the receptacle
reaches the Nisab
(8)
The Due Zakat = Zakat Base By Zakat Rate
Third Chapter
Zakat Accounting
Statements
( Forms)
This chapter includes a number
of simplified accounting Statements to
calculate Zakat on money and other
activities in the light of information
mentioned
in
the
previous
chapters.
These statements are meant to be
used as a guide for accountants when
assessing the receptacle of Zakat,
and when advising the Zakat giver,
whether he is an owner of a personal
establishment or a partner with
others in a private company or a
share holder in an investment
company.
The Statements are as follows:
1. A Statement to calculate Zakat
on wealth in cash.
2. A Statement to calculate Zakat
on Commerce and Industrial
Wealth.
3. A Statement to calculate Zakat
Plants and Fruits.
4. A Statement to calculate Zakat
on Cattle.
on
5. A Statement to calculate Zakat
on mineral and marine wealth, and
minerals in the earth.
6. A Statement to calculate Zakat
on Revenues from Investment in
Fixed Assets.
7. A Statement to calculate Zakat
on revenue from Labor.
8. A Statement to calculate Zakat
on revenue from Freelance Work.
(1)
Zakat Accounting
Statements on Cash wealth
) ‫)زكاة الثروة النقدية‬
Zakat on cash wealth includes:
Banknotes, Coins, Silver, Gold
Money as well as Ingots of gold,
Current Accounts in Banks and
Investment Accounts in Banks
and Investments in Shares and
Bonds and Like
Investments.
The Nisab for cash wealth is 85
grams of pure gold, or its
equivalent in cash, or 595 grams
of pure silver. The Islamic
Commission for Research has
recommended to use the Nisab in
gold.
The Zakat Rate on Cash Wealth is 2.5%
The Amount of Due Zakat=
Zakat Base by Zakat Rate
The
calculation
follows:
steps
are
as
a. Define the time when the Zakat
is due (Al-Hawl), which starts
from the time when the amount
of money reaches
Nisab.
b. Define all items of Cash Wealth, on
which Zakat must be paid
(Zakatable
Money).
c. Asset all items of cash wealth
according to market value at the
time
when
Zakat
is
due.
d. Deduct all Liabilities on the Zakat
giver from his cash wealth so
that to know the receptacle of
Zakat.( Zakat Base
).
e. Compare between the receptacle of
Zakat and the Nisab, which is
equivalent to 85 grams of gold
according to the market value. If
the receptacle reaches the Nisab,
then Zakat is due to be paid.
f. Calculate the amount of Zakat by
multiplying the receptacle by the
price of Zakat, which is 2.5%.
The following statement shows an
example of calculating Zakat on cash
wealth:
Zakat Statement on Cash Wealth
for the year ended / /
Item
Sub- Total
total
* Elements of cash wealth:
- Saudi ryal
- American Dollar (after assessing
according to market price)
- Gold and silver monies (after
defining weight or number)
**
**
**
Zakat Statement on Cash Wealth
for the year ended / / (Continue)
Item
- Pound Sterling (after assessing according
to market price)
- Ingots of gold and silver (after defining
weight)
- Investment bonds (after assessing
according to market price)
- Jewelry for investment (after assessing
according to market price)
- Jewelry which exceeds the amount
normally used for beautification.
Sub- Total
total
**
**
**
**
**
Zakat Statement 0n Cash Wealth
for the year ended / / (Continue)
Item
Sub- Total
total
*Total Zakat cash money
Deduced: Debts which must be paid now
by the Zakat giver (if any)
***
* Cash wealth Zakat Receptacle
***
Compare with the Nisab (the equivalent •
to 85 grams of gold) if receptacle reaches
the Nisab, then Zakat should be calculated
as follows:
***
* Amount of Zakat =
Zakat receptacle x 2.5% =…
***
(2)
Accounting Zakat
Statements on Trading and
Industrial Wealth
) ‫(زكاة عروض التجارة والصناعة‬
This Zakat is imposed on Wealth
for Trading which is to be
bought or sold with the
intention of Trading to earn a
profit.
Goods (properties ) for acquisition and
personal use and not for selling or trade
are not Zakatable. No Zakat, therefore,
are due on them, as they are not added to
Zakat Base
such as :
Fixed Assets and
Personal Assets for use
.
The definition of receptacle of Zakat
(Zakat Base ) on Wealth for trading
and calculating their amount should
be done according to the following
steps:
a) Define the end of the Zakat year. Which
may be the same date as the end of the
financial year for an establishment or a
company.
b) Define and assess the elements of Zakat
such as goods, duties, documents of
payment, investments in stock for
trading and cash in banks and cash in safe
..etc.
c) Define and assess the elements of
immediate current liabilities which are due
for payment from the Zakatable
Wealth.
d) Define the Receptacle of Zakat ( Zakat
Base ) by deducing the current liabilities
(item c) from the Zakat assets (item b)
and add any earned money
(if applicable).
e) Define the amount of the Nisab,
which is the equivalent to 85 grams
of gold , and then compare with the
receptacle of Zakat
f) Calculate the amount of Zakat. If the
receptacle reaches the Nisab, Zakat
should be calculated as 2.5% in the
case of a lunar year, and 2.577% in
the
case
of
a
solar
year.
The following statement shows a
form for calculating Zakat on Trading
Wealth and the question of other
trading activities such as industrial
activity:
Zakat Statement on Trading and
Industry Wealth
for the year ended / /
Item
Sub- Total
total
* Zakatable Wealth for trading: such as:
-
Goods for Trading
Duties / documents of payment
Investments for trade.
Cash in banks.
Cash in safe.
**
**
**
**
**
****
Zakat Statement onTrading and Industry
Wealth
for the year ended / /
Item
Sub- Total
total
* Deduced: Short Term Liabilities: such as:
Debtors / documents of payment(to be paid). - Suppliers.
- Loans due.
- Other Short Term Liabilities.
**
**
**
**
****
Zakat Statement onTrading and Industry
Wealth
for the year ended / / (Continue)
Sub- Total
total
Item
* Net Zakat Wealth for Trade
Added: Earned money (if any).
***
***
*The receptacle of Zakat on wealth for
trade.( Zakat Base )
***
Compare with the Nisab (the equivalent
to 85 grams of gold) if the Zakat Base
reaches the Nisab, Zakat should be
calculated as follows:
* Amount of Due Zakat =
Zakat Base x 2.5% =…
•
***
(3)
Zakat Accounting
Statement
on Plants and fruits
) ‫)زكاة الزروع والثمار‬
What is meant by agriculture is
anything which comes out of the
earth and is planted by seeds,
from which man, animal and bird
feed. And, by fruits everything
which trees carry which is to be
eaten.
Zakat on agriculture and fruits are
due at the time of harvest or
collecting, according to Allah’s
instruction:
) ‫ ( وآتوا حقه يوم حصاده‬: ‫قال هللا تبارك و تعالي‬
“…but render the dues that are
proper on the day that harvest is
gathered”
(Al-An’am, or Cattle, 141)
Therefore, if an area of land
produces more then one crop within
the year, its owner should render
zakat
on
each
crop
separately.
The following are steps of Calculating
the Zakat of Zakat on agriculture
and fruits and calculating their Due
amounts:
a) Measure the total production of the land
either by production quantity or cash.
b) Define the expenses on the production, if
the opinion adopted is that which says
that expenses should be deduced as far as
they do not exceed the third, which is the
opinion of the Sixth Fiqh Seminar of
Barakah.
c) Define the Zakat Base by deducing
(item b) from the (item c).
d) Define the amount of the Nisab, which is
equivalent to 5 Awsaq, or the equvalent to
50 Egyptian Kaylah, or 653 kg of wheat
d) Define the Zakat Rate according to the
Method of Watering , 5% or 10% .
e) Calculate the amount of Zakat as follows:
- In the case of watering by cost:
Amount of Zakat =
Zakat Base x 5% = ……
- In the case of watering without cost:
Amount of Zakat =
Zakat Base x 10% = ……
The following statement shows a
form for calculating Zakat on Plants
and fruits:
Zakat Statement on Plants and fruits
for the crop……
Item
* The value of the crop:
- Deduced: - The expenses of farming (with the
condition that they do not exceed one third of
the value of the crop).
- The cost of farming.
- Governmental taxes.
- Other expenses related to the crop.
Net value of the crop.
Deduced: Currently due debts (if any).
Sub- Total
total
***
**
**
**
**
**
***
**
Zakat Statement on Plants
and Fruits for the crop……(Continue)
Item
* Zakat Base of Plants and fruits.
•Compare with the Nisab, the value of which is 5 Awsaq or
their equivalent. if the Zakat Base reaches the Nisab, Zakat
should be calculated as follows:
Amount of Due Zakat:
* in the case of watering by cost:
Zakat Base x 5% =…
* in the case of watering without cost:
Zakat Base x 10% =…
* The amount of Zakat should be taken from the
crop.
Sub- Total
total
***
(4)
An Accounting Statement for
Zakat on Cattle
) ‫)زكاة األنعام‬
What is meant by cattle is camels, cows,
sheep. Zakat is due on them only if they
are bred for multiplication on cattle
differs according to the kind of species.
For camels it is five, for sheep it is forty,
whereas for cows it is thirty. One should
refer to Fikh books for more details.
The following steps should be
followed to assess the receptacle of
Zakat on cattle and to calculate its
value at the end of the year:
a) Define the number of cattle,
deducing the working animals and
the ones ready for trade (for which
there is a different way of
calculating Zakat.
b) Compare the number with Nisab. If
it is less than the Nisab, then no
Zakat is due.
c) Define which category the number
falls into, in order to define the
amount of due Zakat.
d) Define the Zakat due according to
tables in Fiqh books.
We include on next Slide a form for
calculating the Zakat on cattle.
Zakat Statement on Cattle
for the year ended / /
Item
* The total amount of cattle:
Deduced:
- Working animals (exempted).
- Animals prepared for trade(there is a different system of calculating their Zakat).
* The receptacle for Zakat on
cattle.
Camels
Cows
Sheep
**
*
*
**
**
**
Zakat Statement on Cattle
for the year ended / /
Item
Camels
Cows
Sheep
The receptacle for Zakat on cattle.
**
**
**
*
*
*
* Compare with the Nisab (5 •
camels, 30 cows, 40 sheep), if the
receptacle reaches the Nisab:
* Calculate the amount of Zakat
according to the relevant
schedules.
(5)
An Accounting Statement for
Zakat on mineral and
marine wealth and minerals in
the earth
) ‫( زكاة الركاز والمعادن‬
Mineral and marine wealth include
anything of value which is brought
out from the earth or the bottom of
rivers, seas or oceans. Minerals in
earth (Rikaz) are treasures which are
buried in the earth.
The Nisab for minerals and marine
wealth is the same as the Nisab for
cash wealth, i.e., the equivalent to 85
grams of gold. On the other hand,
Zakat is due on minerals in the earth
regardless of their quantity. For both
categories there is no need to wait
until a year ends.
The following steps are for
defining the receptacle of Zakat
on
minerals
and
marine
wealth:
a) Define the net production from the
earth or sea, on which Zakat must
be
paid.
b) Compare the net production with the
Nisab (the equivalent to 85 grams of
gold) in the case of mineral wealth.
For Rikaz there is no Nisab.
c) Calculate the amount of Zakat, if the
receptacle reaches the Nisab, the
basis of 2.5% for minerals and 20%
for Rikaz.
We include on next slide a form for
calculating the Zakat on mineral and
marine
wealth.
Zakat Statement on
mineral wealth for operation number ……
dated on……
Item
Sub- Total
total
* Net value of mineral and
marine wealth:*
- Net value of mineral wealth.
- Net value of marine wealth.
Net value of mineral and marine
wealth.
**
**
**
Zakat Stateent on
mineral wealth for operation number ……
dated on……(Continue)
Sub- Total
total
Item
Net value of mineral and marine
wealth.
Compare the Nisab (85 grams of gold)
with the receptacle of Zakat. If the
receptacle reaches the Nisab, then Zakat
should be calculated as follows:
* Amount of Zakat =
Zakat Base x 2.5% =
**
•
* Zakat on mineral and marine wealth
after the completion of production sorting,
purification or cleaning and preparation for
sale.
Machinery, manpower and other expenses
of production are not be deduced.
6
An Accounting Statement for
Zakat on revenue of
Fixed Assets
) ‫( زكاة المستغالت‬
It is a Zakat on revenue from
investing Fixed Assets
reoccurring, such as real estate,
cars and others.
No Zakat is due on the actual assets
because they are of the same
category as assets obtained for
establishments (fixed assets). Zakat,
however is due on their revenue once
these revenues reach the Nisab, after
deducing actually paid expenses and
debts which are currently due.
Receptacle of Zakat on investment
assets is calculated by deducing
actually paid expenses and debts
which are currently due from
revenue
Due Zakat is calculated according
to the following steps :
a) Define the total annual revenue
at the end of
year.
b) Define all expenses of getting
the
revenue.
c) Deduce expenses which are
actually paid from the total
revenue to define the net
revenue, on which
Zakat
must be paid.
d) Deduce currently due debts which
the Zakat giver must pay and also
the cost of original matters, if they
were not deduced from any other
receptacle of Zakat.
e) The net of all the above should be
added to any cash and trade goods
owned by the Zakat giver and on
which no Zakat is paid at the end
of the year to ascertain the
receptacle.(Zakat Base ) .
f) Compare receptacle (e) with the Nisab,
which is the equivalent to 85 grams of
gold. If the receptacle reaches the Nisab,
then Zakat should be calculated on the
basis of 2.5%, which is the chosen
opinion for the present
guide.
The Following is a Statement for
Zakat on Revenue from
Investment Fixed Assets
Zakat Statement on Revenue from
Fixed Assets in the year which is ending
/ /
(Continue)
Item
* Total annual revenue
Sub- Total
total
***
* Deduce:
- Costs of and expenses which are
related to the revenue and which are
actually paid.
**
****
Zakat Statement on Revenue from
Investment Fixed Assets in the year
which is ending / / (Continue)
Item
Sub- Total
total
* Deduce:
- The expenses of the original matter
which is actually paid.
- Debts which are due currently.
Receptacle of Zakat on revenue from
investment assets( Zakat Base )
**
**
***
****
Zakat Statement on Revenue from
Investment Fixed Assets in the year
which is ending / / (Continue)
Item
* Add cash, earned money, net of
receptacle of trade if no Zakat is paid on
them.
Receptacle of Zakat ( Zakat Base )
Compare with the Nisab (the equivalent •
to 85 grams of gold) when receptacle
reaches the Nisab, Zakat is as follows:
The Amount of due Zakat =
Zakat Base x 2.5%
Sub- Total
total
**
***
7.
An Accounting Statement for
Zakat on revenue from
Work
) ‫( زكاة كسب العمل‬
This category includes wages,
salaries, income from freelance work
and won money. Zakat must paid on
what remains of this money at the
end of the year by adding it to other
monies owned by the Zakat giver
when calculating the Nisab and the
Zakat year.
The following are the steps to
define the receptacle of Zakat and
to calculate what is due at
the end of year:
a) Define what remains from the
revenue at the end of the year
after deducing what is actually
paid from costs of basic needs
and after
paying outstanding
debts, if there were any which
were not deduced from other
receptacles of Zakat.
b) Compare what remains in step (a)
with
the Nisab (85 grams of
gold) to know whether Zakat is
due or
not.
c) Calculate the amount of Zakat if
the
receptacle reaches the
Nisab, on the basis of
2.5%.
The Following is a Statement
for calculating Zakat on revenue
from work.
Zakat Statement on Revenue from Work
in the year
which is ending / /
Sub- Total
total
Item
* Total Salary during the year
* Total other revenues during the year
* Deduce:
- Costs of basic needs which are actually paid.
- Costs of acquiring the revenue which is
actually paid.
- Paid Debts.
**
**
-
**
**
**
***
***
Zakat Statement on Revenue from Work
in the year
which is ending / / (Continue)
Item
Sub- Total
total
Net salary and other revenues
**
* Add:
Other cash monies (if there are any) on which no
Zakat is paid.
**
Receptacle Of Zakat( Zakat Base )
****
Zakat Statement on Revenue from Work
in the year
which is ending / / (Continue)
Item
Compare with the Nisab
(the
equivalent to 85 grams of gold), If
the receptacle reaches the Nisab,
then Zakat is calculated as
follows:
Amount of Zakat due =
Zakat Base x 2.5% =…
Sub- Total
total
(8)
An Accounting Statement of
Zakat on revenue from
Freelance Professions
) ‫( زكاة المهن الحرة‬
The following are the steps to
define and measure the
receptacle of Zakat on revenue
from freelance professions:
a) The professional should define a
date for ending the Zakat year,
which may be the end of the
financial year for
example.
b) Calculate all direct revenues from
practicing the profession from
the beginning to the end of the
Zakat year.
c) Define expenses and costs which
were actually spent in order to get
the revenue from practicing the
profession.
d) Define the basic needs for the Zakat
giver and his dependants which were
actually spent during the year.
e) Define the debts which were paid by
the Zakat giver during the year
(if there were
any).
f) Define the receptacle of Zakat by
deducing (b, c, d, e,) from
(a).
g) Compare the receptacle from the
previous step with the Nisab (85
grams of gold).
h) Calculate the amount of Zakat if the
receptacle reaches the Nisab on the
basis of
2.5%.
A Statement for calculating Zakat
on revenue from freelance
professions is on next slide. A form
for calculating Zakat on revenue
from freelance professions is on next
slide.
Zakat Statement on Revenue from
Freelance Professions in the year
which is ending / /
Sub- Total
total
Item
* Total revenues during the year
**
* Deduce:
- Costs of practicing the profession.
- Costs of basic needs of the Zakat giver
and his dependants, which are actually
paid.
* Deduce:
- Paid debts
-
**
**
**
**
**
Zakat Statement on Revenue from
Freelance Professions in the year
which is ending / / (Continue)
Item
Receptacle of Zakat: ( Zakat Base)
Compare with the Nisab (the
equivalent to 85 grams of gold), If
the receptacle reaches the Nisab,
then the amount of Zakat is as
follows:
The Amount of Zakat due =
Zakat Base x 2.5% =…
Sub- Total
total
****
CHAPTER FOUR
ZAKAT DUERES
MASARIF AL-ZAKAT
‫‪Zakat Duers in Quran‬‬
‫• للزكاة مصارف محددة من قِبَ َل هللا عز وجل ‪،‬‬
‫كما ورد فى قوله سبحانه وتعالى ‪ِ  :‬إنَّ َمـــــــا‬
‫ام ِل َ‬
‫علَ ْي َها‬
‫ين َ‬
‫صدَقَ ُ‬
‫ال َّ‬
‫ات ِل ْلفُقَ َر ِ‬
‫ين َوا ْلعَ ِ‬
‫اء َوا ْل َم َ‬
‫سا ِك ِ‬
‫ب َوا ْلغَ ِار ِم َ‬
‫ين َوفِي‬
‫الرقَا ِ‬
‫َوا ْل ُم َؤلَّفَ ِة قُلُوبُ ُه ْم َوفِي ِ‬
‫س ِبي ِل فَ ِري َ‬
‫ع ِليم‬
‫اَّللُ َ‬
‫ضةً ِم َن َّ ِ‬
‫س ِبي ِل َّ ِ‬
‫َ‬
‫اَّلل َوا ْب ِن ال َّ‬
‫اَّلل َو َّ‬
‫ح ِكيم ‪[‬سورة التوبة ‪. ]60 :‬‬
‫َ‬
“ Zakat are for the Poor, and the Needly,and
Those Employed to administer the funds, for
those whose hearts have been recently
reconciled to Truth , for those in Bondage
and in Debt , In the cause of Allah , and
the Wayfarer , Ordained by Allah , and
Allah is full of knowledge and Wisdom . “
( Al Tawbah -60 )
Zakat Duers ( Masarif )
The Duers of Zakat as mentioned in the
Holy Quran are as f0llow :
1. The Poor.Those are under the standard
of Living ,i.e. They suffer in finding the
essencials of basic live .
2. The Needy people: Those are under the
normal standard of live .
3. Those employed to administer the
Funds.
Zakat Duers- cont.
4. Those whose hearts have Been
recently reconciled
to Truth
and become Muslim.
5. Those in Bondage., such as to free
Muslim Prisoners .
6. Those in Debt: such as those
whom are Debaters and unable
to pay their Debts .
7. In the cause of Allah: for Gihad
to make the word of Allah is the
Hiarer , and who Fight for Islam
8- The Wayfarer : Travellers Whom
their Money has been lost
oir finished .
Zakat Duers in The Sunnah
: ‫يقول رسول هللا صلي هللا عليه سلم‬
) ‫“ ( مسلم‬... ‫ تؤخذ من أغنيائهم فترد إلي فقرائهم‬.... ”
The Prophet ( PBUH. ) said : Take from ”
the Rich among them and paid it to the
Poor among them ….( related by Moslim)
Zakat Duers Rules
Muslim Scholars have summarized the main
Rules of Zakat Dures as follow :
1- The Poverty : those under Living
Standard
2- The Needy : those who need for
satisfy the essentials of Living
3- Zakat Funds should not be paid to rich
people or to any person able to work .
4- Zakat Funds should not be given to
Relatives whom the Zakat payer is
compulsory to spend, such as Parents
5- It is permitted to transfer Zakat Funds
from place to another for Poor Relatives.
6- It is permitted to give Zakat Funds to •
the following : •
* Poor Students •
* Poor Silly People •
* Poor Relatives •
* Poor Coming to Marriage •
* Poor Orphans •
7- It is permitted for the Wife to give here •
Zakat Fund to here poor Husband •
and it is not permitted for the Husband •
to give his Wife his Zakat Fund . •
8- It is permitted to give Zakat Funds to •
Social and Religious Societies •
9- It is permitted to transfer Zakat Funds •
to Mugahideen ( Holy Strugglers for •
the cause of Allah ) abroad . •
10-It is permitted to pay Zakat Funds to •
Islamic Societies and Establishments
•
which struggle against the Enemies
of Islam.
11- It is allowed to pay Zakat in Advance •
but not permitted to delay it except
•
there is a Legistrate Necessity .
12- When you are intended to pay Zakat •
you should to make Niyya and pray •
Allah and Praise Him . •
‫‪Finished‬‬
‫•و الحمد هلل الذي بنعمته تتم الصالحات‬
‫•‪Praise may be to Allah‬‬
Zakat Accounting Glossary
Compiled By
Dr. Hussien Hussien Shehata
Professor of Accounting
Al-Azhar University ِِ
‫• الزكاة‬
‫• قواعد ( أحكام ) الزكاة‬
‫‪Rules‬‬
‫• مفاهيم الزكاة‬
‫‪Concepts‬‬
‫• أسس الزكاة‬
‫‪Principles‬‬
‫• وعاء الزكاة‬
‫‪Base‬‬
‫• نسبة ( معدل) الزكاة‬
‫‪Rate‬‬
‫• نماذج الزكاة‬
‫‪Zakat‬‬
‫‪Zakat‬‬
‫‪Zakat‬‬
‫‪Zakat‬‬
‫‪Zakat‬‬
‫‪Zakat‬‬
‫‪Zakat‬‬
‫• تقرير الزكاة‬
‫‪Report‬‬
‫• دافع الزكاة( المزكي )‬
‫• معدالت الزكاة‬
‫• قانون الزكاة‬
‫• مقدار الزكاة‬
‫• ثواب الزكاة‬
‫• تحصيل الزكاة‬
‫• أداء الزكاة‬
‫‪Payment‬‬
‫‪Zakat‬‬
‫• حصيلة الزكاة‬
‫‪Zakat‬‬
‫‪Zakat Payer‬‬
‫‪Zakat Rates‬‬
‫‪Zakat Law‬‬
‫‪Zakat Amount‬‬
‫‪Zakat Reward‬‬
‫‪Zakat Collection‬‬
‫‪Zakat‬‬
Zakat Payers
‫دافع الزكاة‬
Zakat Duers
‫• مستحقي الزكاة‬
Zakat Evaders ) ‫المتهرب من الزكاة( مانع الزكاة‬
Zakat Denier
) ‫منكر الزكاة ( جاحد الزكاة‬
Zakat
‫العامل علي الزكاة‬
Administrator
Zakat Authority Unit
‫مصلحة الزكاة‬
Zakat Authority Agent
‫مصلحة الزكاة‬
Zakat Memorandum
‫مذكرة الزكاة‬
Zakat
‫فقهاء الزكاة‬
Scholars
•
•
•
•
•
•
•
•
Zakat Accountants
‫• محاسبواالزكاة‬
Zakat Shariah Auditor ‫• المراجع الشرعي للزكاة‬
Zakat Card
‫• بطاقة الزكاة‬
Zakat File
‫• ملف الزكاة‬
Zakat Period
‫• فترة الزكاة‬
Zakat Index
‫• مؤشر الزكاة‬
Zakat Standards
‫• معايير الزكاة‬
Zakat Base
‫• وعاء الزكاة‬
Zakat
‫• قوانين الزكاة‬
Laws
‫• نصاب الزكاة‬
‫• الزكاة الواجبة‬
‫• معفى من الزكاة‬
‫• زكاة مدفوعة مقدما‬
‫• زكاة مدفوعة مقدما‬
‫• زكوي( صفة )‬
‫الوعاء الزكوي‬
‫• الثروةالزكوية‬
‫• المعدل الزكوي‬
‫‪Zakat Nisab‬‬
‫‪Zakat Due‬‬
‫‪Free form Zakat‬‬
‫‪Pre-paid Zakat‬‬
‫‪Fore ward Zakat‬‬
‫‪Zakatable‬‬
‫‪Zakatable Base‬‬
‫‪Zakatable Wealth‬‬
‫‪Zakatable Rate‬‬
Zakatable Revenues
‫االيرادات الزكوية‬
Zakatable File
‫الملف الزكوي‬
Zakatable Card
‫البطاقة الزكوية‬
Zakatable
‫• الخصومات الزكوية‬
Deductions
Zakatable Allowances ‫المسموحات الزكوية‬
Zakatabl Limit
‫النصاب الزكوي‬
Zakatable Net Wealth ‫صافى الثروة الزكوية‬
Zakat System
‫نظام الزكاة‬
Zakat System
‫وحدات النظام الزكوي‬
Units
•
•
•
•
•
•
•
•
Zakat System Parts
‫أجزاء النظام الزكوي‬
Zakat on Money
‫زكاة المال‬
Zakat on Income
‫الزكاة على الدخل‬
Zakat on Revenues
‫الزكاة على االيرادات‬
Zakat on Cash Money
‫الزكاة على الثروة النقدية‬
Zakat on Commercial Wealth ‫الزكاة على الثروة التجارية‬
Zakat on Industrial Wealth ‫الزكاة على الثروة الصناعية‬
Zakat on Real Estate Wealth ‫الزكاة على الثروة العقارية‬
Zakat on Livestock
‫زكاة األنعام‬
Zakat on Plants and Fruits
‫زكاة الزروع والثمار‬
•
•
•
•
•
•
•
•
•
•
Zakat on Livestock
‫زكاة األنعام‬
Zakat on Plants and Fruits ‫زكاة الزروع والثمار‬
Zakat on Salaries
‫زكاة على المرتبات‬
‫الزكاة على االستثمارات العقارية‬
Zakat on Investment in Real Estate
Properties
‫الزكاة على إيرادات العقارات المؤجرة‬
Zakat on Revenues From Real
Estate Properties
‫الزكاة على إيرادات المهن الحرة‬
Zakat on Revenues from Non-Professional
•
•
•
•
•
•
‫•‬
‫•‬
‫•‬
‫•‬
‫•‬
‫•‬
‫•‬
‫•‬
‫‪Zakat on‬‬
‫الزكاة علي الحلي‬
‫‪Jewelry‬‬
‫‪Zakat on Debts‬‬
‫الزكاة علي الديون‬
‫الزكاة علي األسهم و السندات‬
‫‪Zakat on Stocks and Bonds‬‬
‫‪Zakat Al-Mustaghalat‬‬
‫زكاة المستغالت‬
‫‪Zakat Accountant‬‬
‫محاسب زكوي‬
‫الدفاتر المحاسبية الزكوية ‪Zakat Accounting Books‬‬
‫السجالت المحاسبية الزكوية‬
‫‪Zakat Accounting Records‬‬
‫مفاهيم المحاسبة الزكوية‬
‫• تقارير المحاسبة الزكوية‬
Zakat Accounting Reports
‫• مبادئ المحاسبة الزكوية‬
Zakat Accounting Principles
‫• إجراءات المحاسبة الزكوية‬
Zakat Accounting Procedures
‫• جداول المحاسبة الزكوية‬
Zakat Accounting Schedules
‫• قوائم المحاسبة الزكوية‬
Zakat Accounting Statements
‫عمليات المحاسبة الزكوية‬
•
‫أساليب المحاسبة الزكوية‬
•
‫طرق المحاسبة الزكوية‬
•
Zakat ‫فحص زكوي‬
•
‫ تقدير الزكاة‬/ ‫تقييم‬
Appraisal
‫تحديد الزكاة‬
‫تقدير الزكاة‬
Zakat ‫قياس الزكاة‬
•
Zakat Accounting Operations
Zakat Accounting Techniques
Zakat Accounting Methods
Investigations
Zakat
Zakat Determination
Zakat Assessment
Measurement
•
•
•
Zakat Reduction
‫تخفيض الزكاة‬
Zakat Declaration
‫االفصاح الزكوي‬
Zakat Estimation
‫تقدير الزكاة‬
)‫التقدير الحكمى للزكاة( الخرص‬
Zakat Subjective Evaluation
Zakat Judgment
‫تقدير الزكاة‬
Zakat Acception
‫قبول الزكاة‬
‫تعديالت فى االقرار الزكوي‬
Zakat Declaration Adjustments
Zakat ‫المراقب الزكوي‬
Controller
•
•
•
•
•
•
•
•
Zakat Auditor
‫المراجع( المدقق ) الزكوي‬
Zakat Investigator
‫الفاحص الزكوي‬
Zakat Inspector
‫الفاحص الزكوي‬
Zakat Annual Report ‫التقرير السنوى الزكوي‬
Zakat Position
‫الموقف الزكوي‬
Zakat Forms
‫النماذج الزكوية‬
Zakat Shariah Report ‫التقرير الشرعي للزكاة‬
Zakat Establishment
‫مؤسسة الزكاة‬
Zakat Affairs House
‫بيت شؤون الزكاة‬
•
•
•
•
•
•
•
•
•
) ‫• مستلمي الزكاة ( مستحقي‬
‫• الهيئة الشرعية للزكاة‬
Zakat Shariah Authority Committee
Zakat
‫• الفقيه الزكوي‬
Scholar
Zakat Fiqh
‫• فقه الزكاة‬
Zakat in Quran
‫• الزكاة في القرآن الكريم‬
Zakat in Al-Sunnah
‫• الزكاة في السنة‬
Zakat Receivers
Zakat Receivers
Zakat Receivers.
Zakat Duers
The Poor
The needy
The Administer of Funds
Whose Hearts have been
reconciled to Truth
‫• مصارف الزكاة‬
‫• مستحقي الزكاة‬
‫• الفقراء‬
‫• المساكين‬
‫• العاملين عليها‬
‫• المؤلفة قلوبهم‬
Those in Bondage
Those in Debt
In The Cause of Allah
Wayfarer
‫• في الرقاب‬
‫• الغارمون‬
‫• في سبيل هللا‬
‫• إبن السبيل‬
The Holy Quran
Tradition
A Verse of the
Correct Hadith
Islamic Jurisprudence
Legitimate=Halal
Forbidden=Haram
‫القرآن الكريم‬
‫الحديث الشريف‬
‫آية من القرآن‬
‫حديث صحيح‬
‫الفقه اإلسالمي‬
‫الحالل‬
‫الحرام‬
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‫‪Finished‬‬
‫‪Praise be to Allah‬‬
‫الحمد هلل الذي بنعمته تتم الصالحات‬