Zakaah On Shares

Q1. I have inherited a part share in a private company from my late father’s estate. I merely receive a share in the dividends that the company receives from the companies on the JSE. Do I have to pay Zakaah?

A1. Yes, Zakaah is Waajib on shares.

Q2. Do I pay Zakaah on the dividends which I receive annually, or on the value of the shares listed on the JSE?

A2. It should be noted that Zakaah is not Waajib on the entire share. Rather Zakaah is only Waajib upon the Zakaatable assets of the company (i.e. the market value of the merchandise contained in the share of the company).

Regarding the non-Zakaatable assets of the company e.g. fixtures, fittings, machinery etc. the value of all these things will be evaluated in the share and will not be taken in account when discharging the Zakaah.

(Re: Fataaawa Mahmoodiyya Pg. 134 Vol.14)

(Re: Fataaawa Darul Uloom Zakariyya Pg. 152 Vol.3)

Q3. Will investing on the JSE companies be deemed Haraam? (As we don’t know if they have taken interest-based loans or if they have received interest.)

A3. Fundamentally, to procure shares and invest one’s money in such companies where the main business is of a Halaal nature, is permissible. However, if the company’s main business is of a Haraam nature, such as selling wine, pork, etc., then it will not be permissible.

Furthermore, at times these corporate companies get involved in certain interest-bearing transactions, hence you should try to retrieve information from the company if they are involved in such transactions and are accruing interest. If so, then one should remove that amount of money when one receives the dividend pay-out. If one did not remove the interest amount over the years, then one should calculate the interest amount accumulated over the years and then remove the entire amount when one sells the shares. The rest of the money will then be permissible to keep.

(Re: Islam Aur Jadeedi Ma’ashi Masaail Pg. 15 – 23 Vol. 3)

Q4. If I want out of the company but the other heirs do not want to dissolve the company, what is the way forward?

A4. You can request them to pay out your share in the company.

ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!

ANSWERED BY:

Mufti Abdul Kader Fazlani

Date: 11 Shawwaal 1447 / 31 March 2026

CHECKED AND APPROVED BY:

Mufti Yacoob Vally Saheb