Question
I invested R100,000 in a business which is in operation. I will be receiving 40% of the profits. Do I have to pay Zakaat on the R100,000 I had invested?
Answer
The R100,000 you had invested was in lieu of stock, equipment, etc. in the business. You became 40% owner of the assets of the business, and this entitles you to 40% of the profit. The R100,000 no longer belongs to you. It became the property of the person from whom you had purchased the 40% share in the business. Hence, there is no Zakaat payable by you on the R100,000.
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- Source
- themajlis.co.za
- Published in
- The Majlis Vol 27 No 06
- PDF page
- 8
Verbatim verified against the source PDF
Appears under THE 15th SHA’BAAN. This heading is the nearest headline at or before the page and is approximate. Do not cite it alone.