Advanced6 of 6
Two ways to calculate zakat on shares
It depends on your intent: trading or long-term holding.
Trading: zakat = market value × 2.5%Long-term: zakat = shares × zakatable assets per share × 2.5%Under a common approach (e.g. AAOIFI standards), after a full lunar year and above nisab:
Example 1: trading
Your shares' market value is 4,000 rials:
Zakat4,000 × 2.5% = 100 OMR
Example 2: long-term holding
You own 10,000 shares, and the zakatable assets per share (from the financial statements or the company) are 0.250 rials:
Zakatable assets10,000 × 0.250 = 2,500
Zakat2,500 × 2.5% = 62.5 OMR
Other scholarly views exist; for specific cases consult a qualified religious authority.
All content on this site is for educational purposes only and is not investment advice or a recommendation. Past performance does not guarantee future results. Consult a licensed adviser before making any investment decision.