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Zakath and Khums tax
3:14:2 2023-08-04 1072

ZAKAT poor-tax: to be distributed to the poor One and a half percent of the total value of the following items after all expenses have to be paid as zakat:

* food stock

* livestock

* gold coins

* silver coins

It is also recommended to pay zakat on business capital; and also on profits gained from business. It is obligatory to make intention when paying zakat.

II. KHUMS one-fifth or wealth-tax; payable by the wealthy.

In addition to Zakat it is an obligation on wealthy Muslims to pay Khums.

Khums means one-fifth from the word khamsa in Arabic for five. Twenty percent of the total value on the following items must be paid as khums:

 

* wealth which is gained after a just war

* minerals like: gold, silver, oil, iron, salt ...etc.. extracted from ores or the ground buried treasure

* wealth from the sea e.g. pearls.

* wealth where halal & haram has been unintentionally mixed and the amounts are unknown

* all profits from business, agriculture, industry or rent from land or property or any other source of income. After deducting yearly expenses Khums becomes due on net profit.

* land bought by non-Muslim (a non-Muslim citizen paying a fixed tax) from a Muslim.

Khums is divided into five parts and each part is allocated for:

 

* Jihad

* Propagation of Islam

* needy Muslim relatives of the Prophet

* the poor and the orphans

* travellers who have unwittingly become short of funds

 

Khums can only be distributed by a legitimate ruler of an Islamic State or a10 mujtahid or a pious descendent of the Holy Prophet.

The following Qur'anic Verse commands Muslims to pay the Khums and how to distribute it: "And know that out of all that ye may gain a11 fifth share is assigned to Allah and to the apostle and to near relatives, orphans, the needy and the wayfarer if ye do believe in Allah and in the revelation We sent down to Our servant on the day of testing the day of the meeting of the two forces. For Allah hath power over all things." (Qur'an 8:41)

It is clear from the above Qur'anic verse and the Hadeeth , that to pay the khums is obligatory on all Muslims. In the above verse Allah says ..only those who pay the khums believe in Allah and the Revelations.

 

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