Zakat leads to the healthy growth of the economy and the community. It uplifts the less fortunate members of the society.

1. ZAKAT VS TAXES
NAME: HUDZAIFAH BIN SUHAIMI
(DBA113018)
MOHAMAD IZHAR BIN MOHD KASIM
(DBA112009)
MOHD RIDZWAN BIN MALIK
(DBA112008)

2. DEFINITION OF ZAKAT
In Arabic terms, zakat literally means
- Purification ( Purify one’s heart of Greed)
- Growth
 Zakat in Islamic finance refers to the obligation that
an individual has to donate a certain proportion of
wealth each year to charitable causes.


3. PILLARS OF ISLAM




Zakat is one of the obligation of Islam. It is also
one of the Five pillars, and the most important
amongst them after the Testimonies of faith and the
Prayer
Religious Benefits;
Prosper in the worldly life and the Hereafter
Brings servants closer to his Lord
Allah will wipe away the (reward) of usury and
increase that of charity.
Allah will wipe away minor Sins

4. WHAT IS NISAB?

Nisab is the minimum amount of wealth that must be
owned by a muslim before he/she is obligated for zakat.
-
For example, the nisab in Selangor is
RM14,065.00 (according to Lembaga Zakat
Selangor).
So if you’re living in Selangor and your zakatable
income is more than RM14,065.00,
then you have to
pay your zakat!

In general, the nisab for zakat on wealth is equivalent to
the price of 85 grams of gold.

5. WHAT IS HAUL?


“Cukup Haul” or Wealth must be exactly or more
than a year old
Zakatable income and wealth that is fully owned must
be in the payer’s possession for at least a year
-
For example, Azmah has just graduated
started her first job 5 months ago. Even if
yearly income exceeds the nisab
amount,
only needs to start paying her Zakat
Earning after working for a year.
** Nisab and Haul are not applicable for Zakat Fitrah
and
her
she
on

6. CONDITION OF ZAKAT PAYERS TO BE
FULFILLED
Sane
 Adult (Reached puberty)
 Sahib un Nisab (Owner of Wealth above Nisab
Level)
 Muslim


7. CONDITION OF ZAKAT RECIPIENTS
Those categories of people being mentioned in the
Holy Qu’ran, Surah al-Taubah (9:60)
 Primary focuses on the poor and destitute
Poor is defined as those people whose net
asset (excluding basic necessities) is below
the Nisab threshold.
 A person’s poor relative should be given main
priority


8. 8 ASNAF OR BENEFICIARIES OF ZAKAT
The Poor (Fuqara)
 The Needy (Masakin)
 The Zakat collector (Amilun)
 Muallaf
 Slaves (Riqab)
 Those who are in debt (Ghanimun)
 Way-farer (Ibnu Sabil)
 For the cause of Allah (Fisabillilah)


9. ZAKAT FITRAH
FITR

The same as Iftar, breaking a fast and it comes from the
same root word as (Futoor) which means breakfast.
DEFINITION

Zakat al-Fitr is charity given to the poor at the end of the
fasting in the Islamic holy ( month of Ramadan
).

10. CLASSIFICATION

wajib (required) of every Muslim, whether male or
female, minor or adult as long as he/she has the means
to do so.
PURPOSE




To provide the poor with a means with which they can celebrate the festival
of breaking the fast (`Eid al-Fitr) along with the rest of the Muslims.
1.As a levy on the fasting person.
-This is based on the hadith: The Prophet of Allah said, "The fasting of the month
of fasting will be hanging between earth and heavens and it will not be raised up
to the Divine Presence without paying the Zakat al-Fitr.“
2.To purify those who fast from any indecent act or speech and to help the poor
and needy.

11. PRODUCTION TIME

Staple was released in the month of Ramadan, at
least before the people finished performing Salat
Eid ( Solat Sunat Aidilfitri ) . If the delivery time is
past due then submitted were not included in the
category of zakat alms but ordinary ( sedekah
biasa ).
BENEFITS OF PAYING ZAKAT FITRAH
1.
2.
The purpose of giving them (the poor) enough
food during Ramadan.
Able to meet the requirements of fasting is to
restore man to nature.

12. ZAKAT ON WEALTH (HARTA)
The definition of wealth is something that can be
owned by the individual.
 It is something that is paid for the trade
income, agriculture, livestock, gold, silver and
income.
 Zakat is paid if it has met Nisab or limit the wealth
amount that caused a Muslim has to pay Zakat


13. The wealth must suits these criteria to be obligated for
Zakat namely:
Owned in full. That is, the property is entirely owned by a
person, instead of collectively owned property.
 Treasure that must be paid as Zakat must be obtained
through lawful or permitted by religion.
 Property is developed or has the potential to be developed
 Has reached the limit of Nisab .
 Owned more than 1 year.

*Property owners do not currently have debts that exceed
the amount of property owned.

14. 8 SUBSIDIARIES OF ZAKAT
Zakat on Earning
 Zakat on Business
 Zakat on Savings
 Zakat on Gold & Silver
 Zakat on Shares
 Zakat on KWSP / EPF
 Zakat on Farming
 Zakat on Livestock


15. ZAKAT ON EARNINGS
If you have been working for more than a year and
earning an income that’s above the Nisab
amount, you are obliged to perform your Zakat
Pendapatan.
 Zakat on earning is obviously calculated from your
earnings (much like your income tax).


17. ZAKAT ON BUSINESS
Means performing zakat based on business
earnings. The term “business” refers to any types of
business like Manufacturing, mining, fishing etc.
CONDITION OF ZAKAT ON BUSINESS
 Only Muslim shares is subjected to Zakat
 Compulsory for Halal Assets only
 Haul-period terms


20. ZAKAT ON SAVINGS

Your savings are zakatable purely because it
serves the same purpose as gold and silver (the
nisab of Zakat), and holds purchase power.

21. FIXED DEPOSIT

Once a fixed deposit account reached exactly one
year (cukup haul) and this amount is more than the
nisab value, then 2.5% of the total amount must be
given as Zakat.
-
For example, Maisarah (location : Selangor)
opened a fixed deposit account on April 2011.
By April 2012, her FD account has
accumulated
RM5,000. In Selangor, the
nisab amount for
2012 is RM14,065.00. Therefore, Miasarah
doesn’t need to pay zakat
on her FD.

22. BASIC SAVINGS

It is calculated based on the amount of the lowest balance or
the end haul each year for savings:

Savings in One Account Only
If the savings account has reached the year-old age and the
lowest balance (after subtracting the amount of interest given
in that period) is above the nisab, then one is obliged to pay
zakat on savings for that one account.

-
Example : Wati (location : Selangor) has a Maybank
account. After a year, the lowest balance she has in her
account is RM15,500 (after substracting the interest
given by Maybank). For Selangor, the nisab amount is
RM14,065.00. Therefore, she must pay 2.5% of
RM15,500 as her zakat (2.5% x RM15,500 = RM387.50).

23. SAVINGS IN SEVERAL ACCOUNTS

If a person has set up several savings accounts, then the
lowest balance of all the savings accounts must be
combined to calculate the zakatable wealth.
-
For example, Hana (location : Selangor) has two
savings accounts, Maybank and CIMB. She has
had both accounts for one year. Lowest balance in
Maybank : RM40 (after deducting interest)
Lowest Balance in CIMB : RM600 (after deducting
interest) Total of lowest balance in Maybank
and
CIMB : RM640 (does not exceed nisab, therefore
Hana does not need to pay zakat on her savings
accounts).

25. ZAKAT ON GOLD AND SILVER
Possession of gold and silver that is
over the nisab amount will be
subjected to zakat. This zakat also
has a different nisab amount.
So how to calculate the zakat
amount?

26. METHOD FOR CALCULATE ZAKAT ON GOLD
AND SILVER
 Women’s
gold jewelry
The gold that the person purchase or
use as an ornament or decoration that
over the nisab, they must pay the
zakat.
 The nisab of this gold is about 800
grams.
 The formula is:
(gold weight x current price x 2.5%)

27. OTHER TYPES OF GOLD
 This
type of gold refers to gold which is not
from the above category
 It must be in form of:
- Currency
-Deposits
-Mineral
 The nisab amount of this type is 85grams
The calculation is:
(gold weight x Current price x 2.5%)

28. SILVER
 For
silver, the nisab is 595grams . The nisab
value is the same regardless of its usage or
otherwise you use as the decoration at your
home. So if the silver weights more than
that, you must perform the zakat.
The calculation is:
(weight of silver x price per gram x 2.5%)

29. ZAKAT ON SHARE
The
shares that invested in the
company must be paid in cash.
The zakat rate is 2.5% for the
lowest value of shares.
The share must be held by the
shareholders for one year.

30. THE CALCULATION FOR ZAKAT ON SHARE
Example
1 : shares owned at the
end of one full year. Zakat rate is
2.5% on the lowest cost and the
market value
The formula is: (unit of shares x
lowest price cost x 2.5%)

31. Example
2: Shares purchases
within a year. The zakat is
calculated based on 2.5% on the
value of shares after deducting
the cost of purchasing new shares
The formula is: (the value of
shares-the cost of purchasing new
shares)

32. ZAKAT ON EPF
 In
Malaysia, zakat on EPF becomes obligatory
only when the EPF money becomes fully and
wholly owned by a person. The money can
withdraw when you reach 55 years or you want
to purchase a house perhaps. But when the
amount reach the nisab, so it subjected to
zakat.
The formula is: Zakat value= The sum of the
withdrawn Money x 2.5%

33.  For
example: Azman ( locationselangor) want to purchase a
house, he withdrawn RM50,000 from
EPF saving, so after 1 year the EPF
value is above the nisab amount. The
nisab in selangor is RM14,065. So
how the total zakat that must he pay.
 Zakat value:( RM50,000 x 2.5%)
 Total zakat is= RM1250

34. TYPES OF WITHDRAWALS THAT IS ZAKATABLE
 Withdrawal
Scheme to purchase a
house
 Withdrawal Scheme to redeem
housing loan
 Members children education
withdrawal scheme

35. ZAKAT ON FARMING
 Imposed
only on staple food supplies (
these types of food must be durable
and fulfilling when eaten).
 The item must be
-paddy, date , corn and wheat
 For example in Malaysia our staple
food is rice and therefore zakat will be
imposed on rice from paddy farming.

36. REQUIREMENT FOR ZAKAT ON FARMING
 Muslim
 Fully
owned (i.e owner of paddy field)
 Nisab ( the nisab measurement is
Ausuk or 363 bushel in Malaysia or
1360 kg of rice produced from the
farming of paddy)
 Staple food must be planted by human

37. Farming
of non-staple food
like coconut, palm oil,
rubber tree, black pepper,
cane, cocoa and others that
are grown for business
purposes will be imposed
with business zakat.

38. ZAKAT ON LIVESTOCK
 Zakat
on live stock is a type of zakat
that must be imposed owners of these
livestock such as:
-Goat, sheep, cow, buffalo and camel.
 But these livestock must reached the
nisab age which is 1 year and must be
in a good condition.

39. Total
number of
cow
30
40
60
Number of
cow for
zakat
1 calf
1 cow
2 calves
age
1 year
2 year
1 year
70
A cow & a
calf
1 year or 2
year

40. BENEFITS OF ZAKAT
It stated in the Hadith that by giving zakat the
following benefits are derived;
 Gaining the pleasure of Allah
 Increase in Wealth
 Protection from losses
 Obtaining Allah’s forgiveness and blessings
 Protection from the wrath of Allah and from bad
death
 Zakat would provide shelter at the day of
Judgement
 It will serve as a shield from the fires of Jahanams