Zakat on Residential Apartments

Authors

  • Tamam Odah Alassaf, Dr. University of Jordan

DOI:

https://doi.org/10.25255/jss.2019.8.2.292.305

Keywords:

Zakat, residential apartments, commercial merchandise

Abstract

This study seeks to elucidate the position of the Islamic Shari`ah on the Zakat alms due upon residential apartments prepared for sale, whether they are under construction or are in the stage of marketing. And given that they are offered in the real estate market for purposes of sale and the earning of profit, they are essentially prepared for trading and investment, where the aim is trading, profit generation and financial gain, and hence the Islamic ruling in accordance with the Zakat (alms) prescribed on commercial merchandise is that Zakat payment is obligatory, and also insofar as the method of payment, the quorum and the obligatory amount.

The study reached a set of conclusions and findings, foremost of which:

  • Investment housing projects whose aim is sale upon completion of construction are the most akin to commercial merchandise prepared for sale and hence the rules of Zakat (alms) on commercial merchandise  are applicable.

The requirement of growth is not requisite to make the Zakat obligatory.

Zakat is obligatory for the investor in residential apartments whilst in the stage of construction and preparation, where he shall assess his project at a fair value while giving due regard to time and place, whilst merging it with what he owns in properties, and shall pay Zakat of 2.5%.

Marketing stage of the project, which are periods that vary from one project to the other, and are underpinned by the following possibilities or scenarios:

  1. Sale of the entire project immediately upon completion of construction, whereby the investor shall have succeeded in selling all the residential apartments, and shall make a determination of the profits earned, and then pay Zakat as he would pay Zakat on liquid assets i.e. 2.5%
  2. Selling only a portion of the project, while the remaining is not sold for a year or more, whereupon he shall calculate the profits earned on what has been sold, and add them to what he possesses in wealth, and shall also assess the market value of what has not been sold and pay 2.5% Zakat on it every year.
  3. In case the entire project is not sold for more than a year and then it is sold completely, in which case zakat is obligatory for all the years in which the project was not sold, and (2.5%) become payable and due.

 

Keywords: Zakat, Residential apartments, commercial merchandise.

Downloads

Download data is not yet available.

References

- Al-Baji, Abu Al-Walid Suleiman Bin Khalaf Bin Saad Bin Ayyoub Al-Qurtubi, d.474 H., Al-MuntaqaSharh Al-Muwatta`, Al-Saadeh Printing Press-nearby the governorate of Egypt, 1st ed., 1332H.

- Al-Bajayrami, Suleiman Bin Mohammad Bin Umar, d.1221 H., Hashiyat Al-Bajayrami, Dar El-Fikr, unprinted, date of publication 1995.

- Al-Bahouti, Mansour Bin Younis Bin Salah Eddin, d. 1051H., Kashaf Al-Qina`a ‘AnMatn Al-Iqna`a Dar ElKutub Al-Ilmiyyah.

- IbnJazzi, Abu Al-Qasem, Mohammad Bin Ahmad Bin Mohammad Bin Abdullah, d.741 H. Al-Qawanin Al-Fiqhiyyah.

- Al-Hakem, Abu Abdullah Al-Hakim Mohammad Bin Abdullah Bin Mohammad, d. 405 H., Al-Mustadrak ‘Ala Al-Sahihayn, edited by: Mustafa Abdel Qader Ata, Dar El Kutub Al-Ilmiyyah-Beirut, 1st ed., 1990.

- IbnHazm, Abu Mohammad Ali Bin Ahmad Bin Said, d. 456H., Al-Muhallah FiSharh Al-MuhallahB`ilHujajW`alAathar, edited by Hassan Abdel Mannan, Bayt Al-Afkar Al-Duwaliyyah.

- Al-Hussayni, Kifayat Al-Akhyar Fi Ghayat Al-Ikhtisar.

- Al-Hattab, Abu Abdullah Mohammad Bin Mohammad Bin Abdel Rahman Al-Tarabulsi Al-Maghrabi, d.954 H., Mawaheb Al-Jalil Fi SharhMukhtassar Khalil, Dar El-Fikr, 3rd ed., 1992.

- Al-Daraqutni, Abu Al-Hassan Ali Bin Umar Bin Ahmad Bin, d.385H., SunanAl-Daraqutni, edited by Shu`ayb Al-Arna`out, Hassan Abdel Mun`imShalabi, Abdel LatifHirzallah, Ahmad Barhum, Mu`asassat Al-Risalah, Beirut-Lebanon, 1st ed., 2004 A.D.

- Abu Dawoud, Sunan Abu Dawoud edited by Shu`ayb Al-Arna`out-Mohammad KamelQura Belli, Dar Al-Risalah Al-‘Aalamiyyah, 1st ed., 2009.

- Al-Desouqi, Mohammad Bin Ahmad Bin Arafah, d.1230H., Hashiyat Al-Desouqi ‘Ala Al-Sharh Al-Kabir, Dar El-Fikr, without a print or date,

- Guidance Manual for the Companies Accounting, Bayt Al-Zakat, State of Kuwait, 4th ed., 2015 A.D.

- Al-Dimyati, Abu Baker Uthman Bin Mohammad Shata Al-Shafi`i, d.1310 H., I`anat Al-Talibin‘Ala Hal AlfadhFath Al-Mu`een, Dar El-Fikr for Printing, Publishing and Distribution, 1st ed., 1997.

- Al-Rafi`i, Abdel Karim Bin Mohammad, d. 623 H., Fath Al-Aziz Bi Sharh Al-Wajeez, Dar El-Fikr.

- Al-Zarqani, Mohammad Bin Abdel Baqi Bin Yousef, Sharh Al-Zarqani ‘AlaMuwatta` Al-Imam Malek, edited by Taha Abdel Ra`ufSaad, Religious Culture Bookstore-Cairo, 1st ed., 1424 H.-2003A.D.

- Al-Shanqiti, Mohammad Bin Mohammad Al-Mukhtar, SharhZad Al-Mustaqna`, 95/4, audio lessons which were mechanically downloaded by Al-Shamilah website.

- IbnAbdeen, Mohammad Amin Bin Umar Bin Abdel Aziz, d.1252H., Rad Al-Muhtar ‘Ala Ad-Dur Al-Mukhtar, Dar El-Fikr-Beirut, 2nd ed., 1992.

- Al-Adawi, Abu Al-Hassan Ali Bin Ahmad Bin Makram Al-Sa`eedi, d.1189 H., Hashiyat Al-Adawi ‘AlaSharhKifayat Al-Taleb Al-Rabbani, edited by Yousef Al-Sheikh Mohammad Al-Biqa`i, Dar El-Fikr-Beirut, without printing, 1994A.D>

- Al-‘Ayni, Abu Mohammad Mahmoud Bin Ahmad Bin Musa Bin Ahmad Bin Hussein, d. 855 H., Al-BinayaSharh Al-Hidaya, Dar Al-Kutub Al-Ilmiyyah-Beirut, Lebanon, 1st ed. 2000A.D.

- Al-Ghamari: Ahmad Bin Mohammad Bin As-Siddiq Bin Ahmad, Abu Al-Fayd Al-Ghumari, d.1380H., Al-Hidaya Fi TakhrijAhadith Al-Bidaya, edited by Ali NayefBiqa`i, Dar ‘Alam Al-Kutub, Beirut-Lebanon, 1st ed., 1407H.-1987A.D.

- IbnQudama, Abu Mohammad MuwaffaqEddin Abdullah Bin Ahmad Bin Mohammad, d.620H.,Al-Mughni, Cairo Bookstore, without print, 1968A.D.

- Al-Qalyubi, Ahmad Salameh, W`alBurlusi, Ahmad. HashiyatQalyoubi and Hashiyat Amirah, Dar El-Fikr-Beirut, not printed, 1415H.-1995A.D.

- Al-Kassani, AlaaEddin, Abu Baker Bin Masoud Bin Ahmad, d.587H., Badae` Al-Sane` Fi Tartib Al-Sharae`, Dar El Kutub Al-Ilmiyyah, 2nd ed., 1986.

- IbnMazah, Abu Al-Ma`aliBurhanEddin Mahmoud Bin Ahmad Bin Abdel Aziz, d.616H., Al-Muhit Al-BurhaniF`ilFiqh Al-Nu`mani- the Muslim jurisprudence of Imam Abu Hanifa Allah be pleased with him, edited by: Abdel Karim Sami Al-Jundi, Dar El Kutub Al-Ilmiyyah, Beirut-Lebanon, 1sted., 2004 A.D.

- Al-Maliki, Al-QadiAbu Mohammad Abdel Wahhaab Bin Ali Bin Nasr, d.422 H., Al-Ishraf ‘AlaNukatMasa`el Al-Khilaf, edited by: Al-Habib Bin Taher, Dar IbnHazm, 1st ed., 1999A.D.,

- Maliki, Khalil Bin Ishaq Bin Musa, DiaEddin Al-Jundi, d.776H., Mukhtassar Al-Allama Khalil, edited by Ahmad Jad, Dar Al-Hadith-Cairo, 1st ed., 2005A.D.

- Mansour Bin Younis Bin Saleh Eddin Al-Bahouti, d.1051H.,Kashf Al-Qina`a ‘An Matn Al-Iqna`a, Dar El Kutub Al-Ilmiyyah.

- Al-Nafrawi, Ahmad Bin Ghanim (Abu Ghneim) Bin Salem IbnMuhanna, d. 1126H., Al-Fawakeh Al-Dewani ‘AlaRisalatIbnAbiZayd Al-Qirawani, Dar El-Fikr, 1995A.D.,

- Yassin, Dr. Mohammad Na`im, Growth, its Concept and Place in the Rules of Zakat ar., Contemporary Zakat Issues, Dar ElNafaes-Jordan, 1st ed., 2116A.D.

Downloads

Published

2019-04-01

How to Cite

Alassaf, T. O. (2019). Zakat on Residential Apartments. Journal of Social Sciences (COES&Amp;RJ-JSS), 8(2), 292–305. https://doi.org/10.25255/jss.2019.8.2.292.305