Islam provides comprehensive guidance for all aspects of life, including business. One such guidance is zakat on trade, which is obligatory for every Muslim involved in buying and selling. This is not only a financial obligation, but also part of Islam’s way of maintaining social and economic balance.
Come on, learn more about trade zakat, its benefits, and how to calculate it!
What is Trade Zakat?
As explained on the BAZNAS page, trade zakat is zakat paid from trade assets, namely assets obtained from trade or buying and selling activities with the intention of making a profit.
Like other types of zakat, the law of trade zakat is obligatory for those who have fulfilled the provisions and conditions.
Regarding how to pay it, there are differing opinions among scholars. The Rumaysho website reports that most scholars believe that zakat on trade should be paid in cash.
Meanwhile, Imam Abu Hanifah and Imam Syafi’i are of the view that zakat on merchandise may be issued in the form of merchandise or from its value.
Ibn Taymiyyah chose which would be more beneficial for the recipient of the zakat: whether it be in the form of goods or money.
Benefits and Wisdom of Trading Zakat
Zakat on trade is not just a financial obligation; it also offers numerous benefits and wisdom, both for business owners and the wider community. Here are some of the benefits of zakat on trade, as explained in the Quran and Hadith:
- Distributing wealth from the rich to the needy to reduce social inequality.
- Clean and purify property and keep its owner away from stinginess and greed.
- One way to get closer to Allah and show gratitude for the blessings given.
- Teaches us to be more sensitive to the conditions of the surrounding community and share with others.
- Bringing blessings to business and strengthening the foundation of business so that it continues to run in goodness and far from things that are not blessed.
Also read: Zakat Fitrah – Definition and Payment Rules
Zakat Trading Laws and Conditions
Not all trade businesses are subject to zakat. The following are the requirements for businesses to be required to pay trade zakat.
1. Muslim and Sensible
It is obligatory for every sane Muslim involved in business or trade to pay zakat from the proceeds of his business—if it meets the nisab and haul requirements—which will be explained further.
2. Own Merchandise
Merchandise is owned by the individual, not by someone else or by someone else entrusted to him. This can be acquired through profit-making methods (mu’awadhot) such as buying and selling or renting, or given for free (tabaru’at) such as gifts and bequests.
3. Intended for sale
The goods were originally intended for trade, as every act depends on the intention. In this context, trade (tijarah) is also a form of worship, so there must be an intention to sell, just like any other act.
4. Fulfilling the Nisab Requirements
The nisab is the minimum asset limit, equivalent to 85 grams of gold. If the value of a trade asset is equal to or greater than the nisab, zakat of 2.5% of the total trade assets is obligatory.
For example, if the current price of gold is Rp 1,678,000.00 per gram, the nisab for trade zakat is Rp 142,630,000.00. Therefore, if the value of trade assets reaches or exceeds the nisab, trade zakat must be paid.
5. Owned for One Haul
A haul is a period of time, namely a full year in the Hijri calendar. Zakat on trade is only obligatory if the asset has been owned for a full year (haul).
Typically, zakat is paid at the end of a business’s accounting year or at specific intervals. Some believe that the best time to pay zakat for trade is during Ramadan—but it can be paid at any time, as long as the zakat has been paid within a certain period.
How to Calculate Trade Zakat
Trading assets subject to zakat can be calculated using the following formula:
Trading Zakat = 2.5% x (Current Assets – Short Term Debt)
Where:
- Current Assets can be calculated by adding up: 1) Value of Merchandise (at the time of the haul, not the purchase price), 2) Existing Trade Cash, and 3) Short-Term Receivables.
- Short-term debt is debt that matures only in that year, not all existing trade debt.
- Jika nilai Aset Lancar dikurangi Utang Jangka Pendek ≥ Nisab (setara dengan 85 gram emas), maka zakat perdagangan dikeluarkan sebesar 2,5% dari nilai tersebut.
To better understand how to calculate it, let’s consider the following two scenarios. The first scenario involves Mrs. Untung’s business, which is not subject to trade zakat, and the second scenario involves Mr. Untung’s business, which is subject to trade zakat.
Scenario 1. No Trade Zakat Subject to Tax
Mrs. Untung opened a bakery during Ramadan 1445 H and is considering whether to pay trade zakat in Ramadan 1446 H. Her bakery’s current financial situation is as follows:
- Value of merchandise = Rp. 50,000,000.00
- Existing trading money = Rp. 15,000,000.00
- Accounts receivable = Rp. 12,500,000.00
- Debt due = Rp. 7,500,000.00
If the current price of gold is Rp. 1,678,000.00 per gram, then the nisab is 85 gr x Rp. 1,678,000.00 = Rp. 142,630,000.00.
So the calculation of the value of Mrs. Untung’s merchandise is as follows:
| Value of Merchandise | = | Rp. 50,000,000.00 + Rp. 15,000,000.00 + Rp. 12,500,000.00 – Rp. 7,500,000.00 |
| = | Rp 70.000.000,00 |
Karena nilai barang dagangan Bu Untung lebih kecil dari nisab, maka toko roti Bu Untung tidak dikenai kewajiban zakat perdagangan.
Scenario 2. Subject to Trade Zakat
In the same year, Mr. Untung also opened a coffee shop. It is known that total current assets for the year were Rp 300,000,000.00, with debts due in Ramadan 1446 H of Rp 25,000,000.00. Therefore, the value of Mr. Untung’s coffee shop merchandise is:
| Value of Merchandise | = | Rp 300.000.000,00 – Rp 25.000.000,00 |
| = | Rp 275.000.000,00 |
Because the value of Mr. Untung’s merchandise exceeds the nisab (minimum threshold), Mr. Untung’s coffee shop is subject to trade zakat. The trade zakat that must be paid is as follows:
| Trade Zakat | = | 2,5% x (Rp 300.000.000,00 – Rp Rp 25.000.000,00) |
| = | Rp 6.875.000,00 |
So, that’s how to calculate trade zakat. Since you’re using Labamu, you can look at your current financial statements to determine whether your business is subject to trade zakat or not.
By now, you understand that this app has many benefits. Not only will it generate profits, but your business will also be blessed because you’ve paid zakat according to Islamic law. For those who haven’t subscribed to this app, hurry up and download Labamu from Google Play or the App Store. and feel the benefits!
