Is Zakat Payable on Operational Fixed Assets?

No, Zakat is not payable on operational fixed assets.

The following points clarify this in detail:

• Operational Fixed Assets: Zakat is not due on assets like the premises of an institution, machinery, or equipment. These assets are necessary for business operations and are not meant for trade or profit-making directly.
• Intangible Assets: Zakat does not apply to intangible assets such as patents, trademarks, or software, as these do not hold tangible, tradable value.
• Moveable Operational Assets: Zakat is not obligatory on moveable assets acquired for operational use, provided they are not intended for trade. 

This includes:

• Spare parts
• Tools used for production
• Items stored in warehouses for future use

These items assist in the functioning of a business, rather than being held for resale or trade.

Thus, businesses or institutions are exempt from paying Zakat on fixed, intangible, or operational moveable assets not meant for trade. Zakat primarily applies to liquid assets such as cash, gold, silver, and trade goods. .

And Allah knows best!

Other Zakat Questions You May Have

• Is Zakat Due on Land Bought for Personal Use or Investment?
• Is Zakat Due on Earnings from Driving Lessons?
• Are eBay Resale Items Zakatable After 6 Months?
• Do Taxi Drivers Have to Pay Zakat on Their Cabs?
• Is Zakat Applicable to Fixed Assets in a Business?
• Is It Required for Zakatable Assets to Stay Above Nisab?