Shariah Articles
- About Us
- Are Pension And Provident Fund Death Benefits Payable Into The Estate Of The Deceased Member?
- Assisting Financially Distressed Persons Affected by Recent Flooding From Zakah Funds
- Basic Guidelines On Identity of Zakaatable Assets
- Concluding Second Sale on Supplier’s Premises in the context of Murabaha: Trade Procedere
- Difference between Riba and Sale
- Do the grandchildren( predeceased son’s children ) automatically inherit in the presence of the surviving son or sons of their deceased grandfather?
- Estate Duty Fatwa
- Fatwa of Allamah Mufti Taqi Usmani حفظه الله on the Permissibility of Covid 19 Vaccinations
- Fiqh Of Renting Out Property
- Foundational Difference between Takaful and Conventional Insurance
- Guidance Note On Calculation Of Zakah On JMH Shares
- Guidance Note On Calculation Of Zakah On Jmh Shares: 2016
- Guidance Note On Circumstances When Fidyah Is Payable As Expiation Payment, In Respect Of Missed Ramadaan Fasts As A Result Of Illness
- Guidance Note On The Transferring Zakah To An Agent Of An Eligible Recipient
- Guidance Note On The Transferring Zakah To An Agent Of An Eligible Recipient
- In the News
- Landlord Intends Lessee To Use Premises For Prohibited Purpose
- Most Beneficial Prophetic Supplication
- MS Omar & Associates: Judgements
- On Lifetime Donations by Parents to Children: Summary of Shariah Law Perspectives
- On the Fundamental Differences Between Sukuk and Bonds
- Permissibility of Sale of Goodwill , Trademarks , Patents, Copyrights and Intellectual Property in Shariah Law.
- Practice Areas
- Question on Zakah Implications of Compulsory Pension and Provident Funds
- Sale of an Apartment, OFF Plan , Prior to Possession
- Shariah Compliance Of Agility Product Offered By Mercedes - Benz Finance Company
- Shariah Compliant Guidelines for Investing in the Stock Exchange in accordance with AAOIFI Shariah Standard 21
- Shariah Treatment Of Disposal Of Insurance Surplus In Respect Of A Takaful Arrangement Based On The Waqf Model
- Summary of Key Differences Between Conventional and Islamic Banking
- The Role of Muslims in the New South Africa
- The Zakaatability of Pension ,Provident and Retirement Annuity Funds, including the Question of Purification , in the Context of Voluntary and Compulsory Contributions of an Employee , Deducted at Source.
- The Zakaatablity of Pension, Provident and Retirement Annuity Funds
- The Zakaatablity of Pension, Provident and Retirement Annuity Funds
- The Zakaatablity Of Receivables Arising from the Sale or Supply of Services Rendered
- Treasure Prophetic Dua
- Zakaatability Of Provident And Pension fund: Summary
- Zakah Liability Of Clients in respect of Islamic Financial Instruments
- Zakah on an Incomplete Commercial Development, as at the Zakah Valuation Date
- Zakah Treatment of Shareholders Loans
- Zakah Treatment of Shares in Listed & Unlisted Companies
- Zakah Treatment of Shares in Listed and Unlisted Companies
Zakah on an Incomplete Commercial Development, as at the Zakah Valuation Date
زكاة المشروعات تحت التنفيذ
1. How does a property developer calculate Zakah on a commercial development still under construction, and not as yet completed ( “ incomplete project “) on the Zakah valuation date?
2. If the primary intention of the developer of the incomplete project is to resell it for profit, upon its completion , then in such event , Zakah must be paid on the individual parts capable of sale , on the Zakah valuation date, at the market value thereof, because it is deemed to constitute trading stock.
3. If the incomplete project is suspended , and offered or marketed for sale by the developer in its current incomplete state, then Zakah must be paid at the market value thereof , on the Zakah valuation date, because it constitutes trading stock.
4. On the other hand, if the primary intention of the developer is not to resell the project at a profit, but ultimately to lease the newly developed individual residential or business units of the project ( once completed), as a letting enterprise, then no Zakah is payable on the market value of the incomplete project on the Zakah valuation date.
5. It goes without saying that all cash held by the developer on the Zakah valuation date for the purposes of completion of the project is subject to Zakah.
6. Any accrued liability , in respect of the incomplete project, which is due and payable by the developer on the Zakah valuation date , may be deducted: فارغ عن دين له مطالب من جهة العباد
7. See also: Fatwa of the Nadwa of AlBaraka: 6/12.
And Allah Knows Best
M S Omar
23 February 2025