What is Zakah?
1. Zakah is 3rd pillar of Islam.
2. It is compulsory due on Muslim’s wealth.
What does Quran say about it?
Compulsory, to purify the wealth
خُذ مِن أَموالِهِم صَدَقَةً تُطَهِّرُهُم وَتُزَكّيهِم بِها وَصَلِّ عَلَيهِم ۖ إِنَّ صَلاتَكَ سَكَنٌ لَهُم ۗ وَاللَّهُ سَميعٌ عَليمٌ
Take charity from their possessions to cleanse them and purify them thereby, and bless them. Indeed your blessing is a comfort to them, and Allah is all-hearing, all-knowing.
Surah Al-Taubah, (9:103)
Recipients of Zakah
نَّمَا الصَّدَقَاتُ لِلْفُقَرَاءِ وَالْمَسَاكِينِ وَالْعَامِلِينَ عَلَيْهَا وَالْمُؤَلَّفَةِ قُلُوبُهُمْ وَفِي الرِّقَابِ وَالْغَارِمِينَ وَفِي سَبِيلِ اللَّهِ وَاِبْنِ السَّبِيلِ فَرِيضَةً مِنَ اللَّهِ وَاللَّهُ عَلِيمٌ حَكِيمٌ
Charities are only for the poor and the needy, and those employed to collect them, and those whose hearts are to be reconciled, and for [the freedom of] the slaves and the debtors, and in the way of Allah, and for the traveller. [This is] an ordinance from Allah, and Allah is all-knowing, all-wise.
(Sura Al-Tauba, 9:60)
Equitable distribution
كَيْ لَا يَكُونَ دُولَةً بَيْنَ الْأَغْنِيَاءِ مِنْكُمْ….
…so that
they do not circulate among the rich among you…
(Sura al Hashir 59:7)
Alternative to riba
وَمَا آَتَيْتُمْ مِنْ رِبًا لِيَرْبُوَ فِي أَمْوَالِ النَّاسِ فَلَا يَرْبُو عِنْدَ اللَّهِ وَمَا آَتَيْتُمْ مِنْ زَكَاةٍ تُرِيدُونَ وَجْهَ اللَّهِ فَأُولَئِكَ هُمُ الْمُضْعِفُونَ
“And that which you give in gift (to others), in other that it may increase (your wealth by expecting to get a better one in return) from other people’s property, has no increase with Allah; but that which you give in Zakat seeking Allah’s Countenance, then those they shall have manifold increase.”
(Surat al-Rum, 30:39)
Recipients of Zakah
To be eligible to receive zakat, the recipient must be poor and/or needy. A poor person is someone whose property, in excess of his basic requirements, does not reach the nisab threshold.
The recipient must not belong to your immediate family; your spouse, children, parents and grandparents cannot receive your zakat. Other relatives, however, can receive your zakat.
The poor
The needy
Manager of zakah
Reconciliation of hearts
Freeing the captives
Debtors
In the way of Allah
The travelers
Who pays Zakat?
Zakat is obligatory on someone who is:
- A free man or woman: A slave does not have to pay zakat.
- A Muslim. Zakat is a religious obligation upon Muslims, like the five daily prayers.
- Sane: The person on whom zakat becomes obligatory must be of sound mind according to Imam Abu Hanifa. Imam Malik holds that an insane person is still liable for zakat.
- An adult: Children do not have to pay zakat, even if they own enough wealth to make zakat obligatory. However, both Imam Shafi’i and Imam Malik say that the guardians of the children should pay the zakat on their behalf.
- In complete ownership and control of their wealth: The person must own and be in possession of the wealth, and also be free to spend or dispose of the wealth in any manner they like. If a person has made a loan of their wealth then they are not in a position to spend it until it is repaid.
- In possession of wealth above the nisab threshold: The person should possess wealth above a defined amount required to satisfy the essential needs of themselves and their dependents (nisab).
- Free from debt: Someone in debt may deduct his debts from his assets, if what remains is still above the nisab threshold, zakat is due, otherwise not.
- In possession of the wealth for one complete lunar (Hijrah) year: If one owns zakatable wealth for a lunar year, zakat will become obligatory, provided the total amount of wealth exceeds the nisab at the beginning of the year and the end, irrespective of any fluctuations in the months between.
Zakatable wealth
Gold and Silver
Any gold or silver you possess is zakatable, including jewellery according to Hanafi school, because these two metals have intrinsic monetary value.
Other precious metals and stones are not zakatable unless they were acquired for the purpose of trade.
Cash or its Equivalent
Cash at home, in bank accounts, savings, money lent to others, saving certificates, bonds, shares, investment certificates and so on, are all taken into account when calculating zakat.
Stock Purchased for Trade
Any goods you have bought with the intention of selling are included in your zakatable wealth.
Non-zakatable wealth
- Any goods, other than gold or silver, that you have not bought for resale are non-zakatable.
- No zakat is payable on your personal belongings, such as a house or a car.
When does the zakat year begin?
The zakat year begins on the date on which you were first in possessions of wealth above the nisab.
This will be your seed date, whenever it comes around you will have to calculate zakat, irrespective of any fluctuations in the amount of wealth in your possession.
The only situation in which your seed date will change is if you were to become totally bankrupt and lose all your assets and belongings. In this situation, your new seed date will begin when you are once again in possession of wealth above the nisab.
If you are not sure of your seed date, then estimate it to the best of your ability.
This is a short but explanatory video, it may not cover absolutely everything, but at least gives an idea
Calculation of Zakat
Use the website https://www.islamic-relief.org/zakat/zakat-calculator/ – need to transfer all wealth to Euro/Pounds/Dollars
Calculator in Polish – www.zakat.pl
- Zakat is calculated as 2.5% percent or 1/40 out of your zakatable wealth which is not used towards your living expenses AND which you have had in the beginning and the end of the calculation year.
- Living expenses:
Food, clothing, accommodation , transportation, education, medical expenses.
- X = (Zakatable wealth you had for 12 months* – living expenses for that period)
If X > Nisab, then:
Zakat = X* 2.5%
- Your wealth value may have been fluctuating during the year, the most important is criteria: it should exceed Nisab at the beginning and at the end of the calculation year.
What is Nisab?
As of 1 April 2022 Nisab value was approximately 2056 PLN!
- To be liable for zakat, one’s wealth must amount to more than ‘nisab’
- To determine the nisab, there are two measures: either gold or silver.
- Gold: The Nisab by the gold standard is 87.48 grams of gold or its cash equivalent. This is approximately PLN 23 171 for gold as of 01 April 2022, but will vary with the market value of gold.
Silver: The Nisab by the silver standard is 612.36 grams silver or its equivalent in cash. This is approximately PLN 2 056 as of 01 April 2022.
It’s preferable to take the Silver equivalent for the calculation so that more people pay and the needy can benefit from it!
Pay your Zakat here
Account owner Name: Abdulrahman Sami
Payment title: “Zakat”
Important: We are collecting zakat only until 30-April-2022. Please do not transfer zakat after this date.