Zakat is one of the five pillars of Islam. It is not just a religious duty, but also an effective mechanism for achieving social justice and economic balance. But how can a Muslim calculate the amount of zakat accurately and easily? Many people feel stressed and anxious about this matter, and they avoid this vital task or postpone it until the last minute, but through this article we will review the steps for calculating zakat in a simple and clear manner, aiming to remove ambiguity and facilitate understanding, enabling everyone to perform this great pillar with ease and reassurance. We will also explain in detail the different types of funds subject to zakat, such as: money, currencies, precious metals, agricultural crops, livestock… and others, so follow along with us.
What is the method of calculating the amount of zakat?
The zakat due on establishments is calculated by filling out the zakat declaration with the competent authority, and based on this declaration, the amount of zakat that must be paid is determined, which amounts to 2.5% of the zakat base. The zakat base for those who do not know is the basis on which zakat is calculated, and for its account the total funding sources for the facility are collected. Then fixed assets and the like are deducted from it.
What are the types of obligatory zakat?
The types of obligatory zakat include several main aspects:
- Gold and silver: Zakat is required on the gold and silver that an individual owns, and this applies to banknotes circulating among people now.
- Trade offers: include various commercial goods and commodities, and this type includes: real estate, stocks, and other properties designated for trade.
- Cattle: Zakat is required on livestock, which includes camels, cows, and sheep, and is calculated based on the number and type of animals.
- Crops and fruits: Zakat is required on agricultural crops when they are harvested only based on the amount of harvest.
Notice
In all these types of zakat, Islamic law requires that the money or property reach the legal quorum, and it also requires that the property be fully owned, that is: that the money be fully owned by its owner, and he is able to dispose of it freely.
How is zakat calculated on money?
If you are wondering how the value of zakat is calculated, we can summarize the answer as follows:
How is zakat calculated on cash?
To calculate the amount of zakat on cash money, whether it is in banks or from savings, the total amount is divided by forty. This calculation can be simplified by multiplying the total amount by 2.5%, which is the percentage of zakat prescribed by Islamic law. For example: If you have 10,000 Saudi riyals, the calculation of the zakat amount here is:
- Zakat = 10,000 / 100 * 2.5 = 250 Saudi riyals.
How is zakat calculated on saved money?
Saved money that has reached the quorum and has passed for a full year is subject to zakat at the same rate, which is a quarter of a tenth (2.5%). It is worth noting that the quorum is the minimum amount for which zakat is due, and is equivalent to the value of 85 grams of gold, or 595 grams of silver. Remember that when the two conditions are met (the quorum and one year has passed), zakat must be paid on the entire saved amount.
Is zakat obligatory on hard money?
Yes, even money that does not grow or does not generate a profit must be subject to zakat when the two conditions for zakat are met: the quorum and the turning of the year, and the zakat percentage here is the same as a quarter of a tenth (2.5%). It is worth noting that the aim of this is to achieve justice and contribute to the distribution of wealth in a way that ensures social solidarity.
Example
If a retired man has a bank account with a limit of 200,000 Saudi riyals in any year that does not change and is fixed, then the calculation of the zakat amount here is:
- Zakat = 200,000 * 2.5% = 5,000 Saudi riyals.
Is zakat required on money deposited in the bank?
Yes, as funds deposited in banks are not exempt from zakat, and when the quorum conditions are met and one year has passed on these funds, it becomes obligatory to pay zakat on them.
How do you calculate zakat on bank deposits?
Zakat on deposited funds is calculated in the same way as Zakat on cash and saved funds: dividing the total amount by forty or multiplying it by 2.5%.
An example of this: If you have a bank deposit worth 20,000 Saudi riyals, and you want to calculate zakat on it after one year, it would be:
- Zakat = 20,000 * 2.5% = 500 Saudi riyals.
Example of calculating a company’s zakat
These data are for one of the companies as at the end of the fiscal year:
| Statement of financial position | |||
| Assets | liabilities | ||
| Current assets | 15,000 Saudi riyals | Current liabilities | 5000 Saudi riyals |
| Non-current assets (machinery and equipment) | 10,000 Saudi riyals | Non-current liabilities | 8000 Saudi riyals |
| equity | 12000 riyals | ||
| Total | 25,000 Saudi riyals | Total | 25,000 Saudi riyals |
To calculate the zakat base, we add external financing sources first to offset them with the deductions, then we add the long-term liabilities to the deductions, then we subtract the non-zakat assets to appear as follows:
| item | SR |
| Long-term liabilities | 8000 |
| equity | 12000 |
| Minus: non-Zakat assets | 10000 |
| Zakat base | 10000 |
Example of calculating zakat for a few companies
| Type of Company | Zakat base (Saudi Riyal) | Zakat rate | Zakat due | Income tax |
| Saudi companies | 1,500,000 | 2.5% | 37,500 | Isn’t applied |
| Gulf companies | 750,000 | 2.5% | 18.750 | Isn’t applied |
| Mixed companies | 1,200,000 | – | – | – |
| The share of Saudi companies is 60% | 700,000 | 2.5% | 17.500 | Isn’t applied |
| The share of non-Saudi companies is 40% | 300,000 | – | – | Subject to income tax |
How do I calculate zakat based on the money saved from salary?
Zakat on money saved from the salary is an important part of Islamic law, as zakat is imposed on money saved from the salary under two basic conditions:
- A full year has passed.
- That the money reaches the specified quorum.
The obligation of zakat begins when a Muslim collects from his salary what is equivalent to the quorum, and this money is kept for a period of about a full lunar year. At the end of this year, zakat is calculated on the original amount. In addition to any additional money saved from other salaries during the year, even if not a full year has passed since this additional money has been saved,.
It is worth noting that this zakat is a kind of acceleration in paying zakat on newly added funds with the aim of keeping the money clean and increasing the blessing in it.
An illustrative example
Suppose that a person saved an amount of 100,000 riyals from his salary, and a full year has passed. Let us also assume that the quorum in that year was equivalent to 30,000 riyals. Since the amount saved exceeds the quorum, zakat is obligatory on him. In order to be able to calculate the amount of zakat:
- The amount of zakat is 100,000/100 * 2.5 = 2,500 Saudi riyals.
How do I calculate zakat for precious metals and gemstones?
The zakat on precious metals and gemstones is calculated at the same rate as the zakat on gold, which is 2.5% of their current market value. It is worth noting that metals and precious stones must be evaluated according to the current market price, and then the zakat imposed on this value must be calculated.
Zakat on investment accounts and financial assets
This category includes investment accounts, instruments, stocks, bonds, and bank deposits. It is worth noting that the zakat rate imposed on them is 2.5% of the total amount, or the amount with profits, and each type must be calculated in detail according to its financial situation.
What is the amount of zakat on livestock?
Zakat on livestock is calculated according to their type and number as follows:
The Camels
- From 5 to 9 heads: one sheep.
- 10 to 14 heads: two sheep.
- 15 to 19 heads: three sheep.
- 20 to 24 heads: four sheep.
Cows
Its quorum starts with 30 heads:
From 30 to 39 heads, one head of cow is produced.
Sheep
Its quorum starts with 40 heads:
- From 40 to 120 heads: one sheep.
- 121 to 200 heads: two sheep.
- 201 to 399 heads: three sheep.
- 400 to 499 heads: four sheep.
- 500 to 599 heads: five sheep.
Zakat on crops and fruits
Zakat on crops and fruits is calculated at 5% of their market value when they reach the zakat quorum, which is equivalent to approximately 653 kg. It is worth noting that zakat on crops is collected at harvest and not at the completion of a full Hijri year.
Defining the quorum gold and silver and how to calculate it
Quorum of gold
The gold quorum is determined by the known minimum amount to which, if the money reaches it, zakat must be paid. According to Sharia, the quorum for gold is 85 grams of pure gold. In other words: if a person has gold or money equivalent to the value of 85 grams of gold or more, then the quorum has been reached. He must pay zakat.
Quorum of silver
As for silver, the quorum is 595 grams of pure silver. If a person has silver or money equivalent to the value of 595 grams of silver or more, the quorum has been reached, and he must pay zakat.
Notice
The amount that must be paid in zakat on money, whether it is gold or silver, is a quarter of a tenth, which is equivalent to 2.5% of the total money saved.
The importance of using the Qoyod program in calculating the amount of zakat
The Qoyod program is one of the available tools that makes it easier for small and medium-sized companies in Saudi Arabia to manage zakat accounts in a simplified and effective manner, in addition to the following:
Facilitating the zakat calculation process
The Qoyod program comes with an easy-to-use interface, which contributes to reducing the complications and time spent calculating Zakat. It offers a platform that is compliant with local laws and regulations, meaning businesses can rely on it with confidence for full compliance.
Accuracy and comprehensiveness of accounts
The Qoyod program allows accurate and integrated organization of all operations and transactions related to calculating the amount of Zakat, including assets and expenses. Thus, this helps ensure that Zakat is calculated accurately according to the specified requirements.
Automated updates and compliance
By using Qoyod software, users can benefit from automatic updates that incorporate new legal changes, ensuring continuous and accurate compliance with Zakat regulations effortlessly.
Saving time and effort
With its simple and compatible interface, Qoyod frees up significant time that can be invested in other company priorities and thus means greater focus on growth and development rather than complex administrative matters.
Technical support and training
Qoyod support is not limited to the interface alone but also includes specialized technical support and training for users, which increases their ability to use the program effectively and without problems.
Zakat calculator excel file
Download the Zakat calculator Excel file, click here
Conclusion
We realize that calculating the amount of zakat is not just a mathematical exercise but rather a living expression of compassion and social justice. It is also an invitation to all of us to share the wealth and share the suffering in our communities. It is worth noting that zakat, in its essence, reminds us that wealth is not just numbers in our acounts but rather a responsibility that we bear as individuals and societies alike. When we build bridges of generosity and solidarity, we create a more humane and positive world for all. So let us begin today to estimate and distribute our wealth wisely and compassionately to live a life filled with success and spiritual growth, in addition to economic growth. Remember that performing this obligation in the correct way and sincerely in its intention has a profound effect on purifying and purifying the soul, as God Almighty said: “Take from their wealth charity to purify them and purify them thereby” [At-Tawbah: 103].
Remember that the journey of calculating the amount of zakat is a journey that deserves to be used by the Qoyod program when undertaking it to save time and have a better future for everyone. It is worth noting that the program also offers all its customers: electronic invoice systems, as well as point-of-sale systems, stores, customers, and so on.
After learning how to calculate the amount of zakat, Try Qoyod now for free for 14 days; you won’t regret it. It is an accounting program that facilitates all aspects of your daily life.
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