Zakat on Residential Apartments
Journal Title: Journal of Social Sciences (COES&RJ-JSS) - Year 2019, Vol 8, Issue 2
Abstract
This study seeks to elucidate the position of the Islamic Shari`ah on the Zakat alms due upon residential apartments prepared for sale, whether they are under construction or are in the stage of marketing. In addition, given that they are offered in the real estate market for purposes of sale and the earning of profit, they are essentially prepared for trading and investment, where the aim is trading, profit generation and financial gain, and hence the Islamic ruling in accordance with the Zakat (alms) prescribed on commercial merchandise is that Zakat payment is obligatory, and also insofar as the method of payment, the quorum and the obligatory amount. The study reached a set of conclusions and findings, foremost of which: Investment housing projects whose aim is sale upon completion of construction are the most akin to commercial merchandise prepared for sale and hence the rules of Zakat (alms) on commercial merchandise are applicable. The requirement of growth is not requisite to make the Zakat obligatory. Zakat is obligatory for the investor in residential apartments whilst in the stage of construction and preparation, where he shall assess his project at a fair value while giving due regard to time and place, whilst merging it with what he owns in properties, and shall pay Zakat of 2.5%. Marketing stage of the project, which are periods that vary from one project to the other, and are underpinned by the following possibilities or scenarios: a) Sale of the entire project immediately upon completion of construction, whereby the investor shall have succeeded in selling all the residential apartments, and shall make a determination of the profits earned, and then pay Zakat as he would pay Zakat on liquid assets i.e. 2.5% b) Selling only a portion of the project, while the remaining is not sold for a year or more, whereupon he shall calculate the profits earned on what has been sold, and add them to what he possesses in wealth, and shall also assess the market value of what has not been sold and pay 2.5% Zakat on it every year. c) In case the entire project is not sold for more than a year and then it is sold completely, in which case zakat is obligatory for all the years in which the project was not sold, and (2.5%) become payable and due.
Authors and Affiliations
Tamam Odah Alassaf
Keywords
Related Articles
- EP ID EP507513
- DOI 10.25255/jss.2019.8.2.292.305
- Views 73
- Downloads 0
The impact of adapting the jurisprudence of the objectives of Sharia Controls (Contemporary financial transactions as a model)
The adaptation of the jurisprudence is a practical method of jurisprudence to judge the hew cases and matters. It can only be achieved after verifying the availability of its basic elements, including the objectives of S...
Pragmatic Approach: Factive Presupposition in Religious Islamic Texts
The aim of study is to cast the light on factive presupposition in religious Islamic texts. The Pragmatic approach is adopted to analyze the factive presupposition in religious Islamic texts, and it looks at the relatio...
Civil State and its impact on reform
Islam sanctions and affirms the openness of Muslim society to the civilizational outputs of other societies without any a priori sensitivities. This is grounded in digesting and assimilating the civilizational outputs tr...
The Impact of Social Media Characteristics and Customer Attitude on EWOM : Empirical Study in Jordan Banking Sector
This study analyses the effects of social media marketing characteristics and consumer attitudes on electronic word of mouth (eWOM) responses in the banking industry. A survey was conducted with a total of 416 customers...
Reviewing the Mediating Role of Job Satisfaction on the Effect of Employee Engagement on Organizational Performance
Businesses are trying to flourish and adapt to the various challenges they encounter in today’s competitive environment by improving their organizational performance. In order to achieve better results and higher profit...