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# Zakaat Calculator

Calculations Based on Silver Nisab of Grams

## Assets

\$

Cash and liquid investments are subject to Zakat.

If interest has been earned on your liquid investments, then all of it should be given to charity and only the principal invested amount should be noted for Zakat purposes.

\$

Gold and silver, in whichever form (jewellery, coin, ingots etc.) are subject to Zakat.

However, there is a difference of opinion about Jewelry that is worn and if its Zakatable or not.

If you own personal use items made from a mixture of metals, these are only liable to zakat if half or more of the metal is gold or silver, although some scholars hold that the proportion of gold or silver in any owned asset is Zakatable.

Gold and silver can be valued at its resale value by a jeweler or you can multiply the amount of grams (of gold or silver) you own by the current market value.

NZF takes the opinion that Zakat should be paid on Gold and Silver regardless of whether it is used or not.

\$

Gold and silver, in whichever form (jewellery, coin, ingots etc.) are subject to Zakat.

However, there is a difference of opinion about Jewelry that is worn and if its Zakatable or not.

If you own personal use items made from a mixture of metals, these are only liable to zakat if half or more of the metal is gold or silver, although some scholars hold that the proportion of gold or silver in any owned asset is Zakatable.

Gold and silver can be valued at its resale value by a jeweler or you can multiply the amount of grams (of gold or silver) you own by the current market value.

NZF takes the opinion that Zakat should be paid on Gold and Silver regardless of whether it is used or not.

\$

In relation to your business, you should include the following as Zakatable assets below where relevant.

• Cash
• Goods for Sale* (Wholesale Price or Retail Price)
• Inventory* (Wholesale Price or Retail Price)
• Work in progress (at cost)
• Raw materials (at cost)

*We follow the opinion that Zakat is due upon the wholesale price of your inventory or goods for sale.

What do we mean by Wholesale price? If someone wanted to buy this inventory or your goods in bulk what price would you sell it to them for. This would be liable portion of your Zakat and if you pay lower than this that you are underpaying your Zakat.

If however you decide to pay on the Retail price then you are going above the requirement of whats liable and doing ihsaan as many scholars have stated as your Zakat will benefit more people as you are paying more.

If you have business liabilities to offset against these assets, then you will be able to enter these in the next section.

\$

Include entire value of your portfolio and pay Zakat on it.

Scenario 2: Long term investments (one lunar year or more)

From the balance sheet of the company (in which you hold shares), use the following formula:

1. Amount Y = (Cash + Cash Equivalent + Accounts Receivables + Inventory) / Total Number of Shares Issued by Company
2. Your Zakatable Amount = [(Amount Y) x (Number of shares you own)]

Scenario 3: Cashing out

Upon cashing out, the amount remaining after taxes and fees is added to your Zakatable assets.

\$

First assess which scenario your asset falls under. Scenario 2 is very specific to some pension funds otherwise most fall under Scenario 1.

Scenario 1: Have access to fund withdrawal. Total RRSP/RESP value (your contribution + other contributions) minus the Penalties and Taxes you will pay for early withdrawal and pay Zakat on that.

Scenario 2: No access to withdraw funds. If long term and no control/ access over assets then you treat it as passive investment and only pay zakat when you have access to your investment.

Please Note: upon maturity of the fund, you have to pay Zakat on the entire value of the fund regardless if you withdraw in increments or the entire amount. You can deduct any fees or taxes if applicable upon withdrawal if necessary.

\$

The house in which you live is not subject to Zakat.

If a property or other fixed asset is purchased with the express intent to resell, then the entire sale value of the property is subject to Zakat.

Remember this rule does not apply to the house you live in yourself. This is for additional properties you may own or possess.

If you don’t have enough cashflow to pay the Zakat due if marked for sale then you should pay Zakat on the property once you have the funds available and Allah knows best.

If it is a rental property then you only have to pay Zakat on the rental income minus the expenses related to the rental income. Remember, you will only pay Zakat on what you currently possess in cash or liquid assets. Whatever has already been spent has no Zakat on it.

If you have no intention with a property or fixed asset then there is no Zakat on it until it falls into one of the other options mentioned above.

\$

Cash investments such as bonds or savings products offered by your bank, which offer an interest-based return are prohibited in Islam. Although there is no Zakat due on forbidden wealth, Zakat is still due on the proportion of the investment that is halal.

For example, if Ali invested \$10,000 in a savings product that has been yielding 7% return based on interest, then Zakat is due only on the original investment (or the principal value), subtracting any interest received.

If you own an interest-bearing asset, then you are advised to sell the asset, give away the interest money received in charity and use the remaining money in a halal manner.

\$

Zakat is payable on strong debts, i.e. money owed to you that you are confident will be returned back to you.

This may include personal loans to friends and family.

This does not include outstanding wages, dowry, inheritance or assets held in trust.

\$

If you possess any other cash equivalent or liquid assets that are not mentioned above, please add the dollar value of these here. This could include (but not limited to)

• the face value of your cryptocurrency holdings
• other currencies held in offshore accounts which you did not include above
• assets belonging to a family member on whose behalf you are paying Zakat

## Liabilities

\$

Certain liabilities can be deducted from your Zakatable assets.

These include outstanding or overdue living expenses such as rent payments, utility bills and debts.

For long-term debt, such as mortgages or student loans, only the non-interest or principal portion of the upcoming lunar year’s worth of payments can be deducted for Zakat calculation purposes.

If payments are not being paid on the long-term debt, then it should not be deducted from your zakatable assets.

\$

Please include the value of any of the following outstanding/unpaid liabilities that are either due between now and your Zakat due date or overdue payments:

• Commercial loans that have been used to finance Zakatable assets
• Rent
• Utility bills
• Salary
• Other bills

Do not include any liabilities that are due to be paid beyond your Zakat date.

## Zakat Due : \$0

### Nisab

Silver ( g)
Price/g: \$ Nisab:
Gold ( g)
Price/g: \$ Nisab:

Total Assets:
\$0
Less Total Liabilities:
\$0
Equals Total Zakatable:
\$0