IRSYAD AL-FATWA SERIES 13: ZAKAT FOR COMPANIES WHICH IS SHARIAH-COMPLIANT BUT THE PARENT COMPANY IS OWNED BY NON-MUSLIMS

13

Question:

Are shariah-compliant banks and companies where their parent company are owned by non-Muslims should pay zakat?

 

Answer:

Alhamdulillah, praise and thanks to Allah for the countless blessings He has blessed us all with. Blessings and salutations to the Prophet Muhammad PBUH, his wives, his family, companions and all those that follow his teachings to the day of judgement.

I will present the answer to this issue in several examples:

First: It should be understood that the obligation of zakat is only for Muslims, for the valid condition in worship is only for Muslims.

Second: In developing the economy, Muslims are free to do business and trade with anyone whether they are Muslims or non-Muslims.

Third: Zakat is one of the pillars of Islam which should be fulfilled and the refusal to pay zakat is included as one of major sins. During the rule of Caliph Saidina Abu Bakar RA, he declared war on those who refused to pay zakat and this incident is recorded in history. Allah SWT state:

خُذْ مِنْ أَمْوَ‌ٰلِهِمْ صَدَقَةً تُطَهِّرُهُمْ وَتُزَكِّيهِم بِهَا

“Take, [O, Muhammad], from their wealth a charity by which you purify them and cause them increase,”

Surah al-Taubah (103)

Allah SWT state:

وَأَقِيمُوا۟ ٱلصَّلَو‌ٰةَ وَءَاتُوا۟ ٱلزَّكَو‌ٰةَ وَٱرْكَعُوا۟ مَعَ ٱلرَّ‌ٰكِعِينَ

“And establish prayer and give zakah and bow with those who bow [in worship and obedience].”

Surah al-Baqarah (43)

As for if zakat should be paid for shariah-compliant banks and companies where their parent companies are owned by non-Muslims, this matter has been decided by National Muzakarah Committee in Special Muzakarah which convened on 16th August 2001, where all Islamic banking that run business according to syara’ are obligated to pay zakat, the same is applicable for all counters that run businesses according syara’ where their parent companies are owned by non-Muslims.