I`am 1 of 5 shareholders of a family company. The company is doing very well in it`s business and has large land holdings as assets
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One of our brothers/sisters has asked this question:
I`am 1 of 5 shareholders of a family company. The company is doing very well in it`s business and has large land holdings as assets. The company pays an annual zakat which is of significent value. Does eac sharholder have to pay an individual zakat seperate to that of the company? In my case, 20% of the zakat whicg the company pays is more than what I have to pay on my personal assets? So can I count this as zakat also?
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Zakah on company assets
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Your Question: Does eac sharholder have to pay an individual zakat seperate to that of the company?
If the zakat is paid by the company for its assets, then each individual shareholder need not again pay the zakat for his share that he owns in the company.
But if the shareholder has other personal assets other than his shares in the company, he would indeed be liable to pay zakah on his additional assets and wealth.
Your Question: In my case, 20% of the zakat whicg the company pays is more than what I have to pay on my personal assets? So can I count this as zakat also?
It would neither be accurate nor righteousness to substitute the extra zakah the company pays on its assets, as the zakah of ones personal wealth which have nothing to do with the company.
It would be righteousness and closer to piety if one would accurately calculate ones personal excess wealth separately, and pay its due zakah accordingly.
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Your brother and well wisher in Islam,