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Atta-ur-Rehman

Is Zakat Applicable to Shares in Companies with Non-Muslim CEOs?

8 min read

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Yes, Zakat is due on the shares in a company regardless of non-Muslim owners or CEOs.

The obligation of Zakat is not affected by the religious affiliation of other stakeholders in the company. If you own shares in a company, Zakat's calculation is based on the proportion of shares you hold. You are personally responsible for paying Zakat the amount corresponding to your shares.

Example

If you own 200 shares out of a total of 1,000 shares in a company, your Zakat obligation will be based on your 200 shares alone. The religious background of the company’s owners or the CEO does not change this.

The remaining 800 shares, regardless of who owns them (whether Muslims or non-Muslims), will be the responsibility of their respective owners. Each shareholder will pay Zakat on the shares they own, according to their responsibility.

In other words, the ownership of shares in a company determines who is responsible for the Zakat on those shares. If you own shares, you are accountable for paying Zakat on them, but if someone else owns the shares, they are the ones who must pay Zakat.

This principle applies irrespective of the owners' or CEOs' religious beliefs. The key is that Zakat is a personal obligation on the individual who holds ownership, not on the company itself or its other shareholders, whether they are Muslim or non-Muslim.

And Allah knows best!

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WRITTEN BY

Atta-ur-Rehman

Atta-ur-Rehman, a specialist in Fiqh from Fazal-Jamiat-ul-Uloom-ul-Shariah, Jama'at ul-Umar Karachi, is an expert in Islamic jurisprudence. His expertise spans various aspects of Shariah, including Zakat, financial rulings, family laws, and ethical guidance in everyday life. With a deep understanding of Islamic principles, he provides a reliable insights into matters of faith, worship, and personal obligations.