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