Zakaat on unit trusts
Question
Please provide guidance on Zakaat on unit trusts as a long term investment. Can the NAV of the unit trust be reduced after analysing the Balance Sheet to deduct Non-Zakaatable assets. Another question, is Zakaat payable on property listed shares including SA REIT’s?
Answer
1. Assuming that the unit trust is Shariah compliant, Zakaat is payable on the current market value of the Zakaatable assets only. It will therefore be correct for you to deduct non-Zakaatable assets before calculating your Zakaat.
N.B. Our Fatwa department doesn’t approve of investing on the stock exchange.
2. We assume that S.A Reits is a property investment. If by investing in the property company, you are purchasing a share in a building (such as a shopping centre or block of flats, etc.) then Zakaat is only payable on the income derived from the investment, if the income is available when calculating your yearly Zakaat. If the income was spent before your stipulated Zakaat date, then there is no Zakaat on such income.
- Answered by
- Mufti Mohammed Desai
Where scholars differ, it’s safer to take the more cautious view.
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Source: Darul Ifta Ibn Masood — https://fataawa.co.za/17368-2/
Fatawa SA: https://fatawa.co.za/fatwa/ibnmasood-17368
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