Executive Procedures of Calculating Zakah

The executive procedures for calculating Zakah are represented in the following:

01.
Determining the end of the year, for the time at which Zakah is to be calculated. It varies according to the type of property liable to Zakah except for the Zakah due on plants, fruits, metals and natural resources. Zakah becomes due at the time of harvest or on discovering mineral and sea resources.

02.
Determining and evaluating the various types of properties owned by a given person who is asked to pay Zakah, and determining what is included in Zakah and thus called "the properties liable to Zakah", or "the Zakah funds".

03.
Determining and evaluating the commitments to be paid and deducted from the properties liable to Zakah.

04.
Deducting due commitments from properties to determine those liable to Zakah.

05.
Determining the minimum amount liable to Zakah according to the type of property or activity.

06.
Comparing the value of property stated in Article No. four to the minimum amount liable to Zakah stated in Article No. 5, to decide whether the property will be liable to Zakah or not.

07.

Determining the due quota for Zakah, which may be:

a.
2.5% as in Zakah due on gold and silver, trade, used objects, work earnings, profits and minerals, according to the opinion held by the majority of scholars.

b.
5% as in Zakah due on crops and fruits that are irrigated by tools and equipment (with irrigation costs).

c.
10% as in Zakah due on crops and fruits that are irrigated by springs and rain (without irrigation costs).

d.
20% as in Zakah due on mineral resources.

08.
Calculating Zakah by multiplying its percentage by the total amount liable to Zakah.

09.

Dividing the amount of Zakah as follows:

a.
When an enterprise is owned by individuals, the owner of the enterprise is responsible for paying the whole amount of Zakah due.

b.
When a firm is owned by partners, the amount of Zakah is divided among the partners according to their shares of the capital.

c.
When firms are founded on different sources of funding, the amount of Zakah is to be divided among the number of shares that comprise the business in order to determine the Zakah due on each share. Then, the shares of every shareholder are calculated in order to know the amount due on each one of them.

10.

Distribution of Zakah on its various channels in the light of Islamic Law.

11.
Showing and revealing the amount of Zakah and its distribution using financial reports and accounts.