Zakat base:
The resultant of the assets minus the liabilities
Zakat assets:
The cash assets or the assets that can be transferred into
cash during a period of one year.
The following items are excluded
from Zakat assets:
(1)
Fixed assets:
Those which the establishment buys for the purpose of
benefiting from them over long periods rather than for
resale like machines.
(2)
Intangible assets:
Those which the establishment buys for the purpose of benefiting from them
over long periods rather than for resale like trademarks and
patents.
(3)
Assets rented to others:
those assets bought for the purpose of rental to others for
return like machines and cars.
(4)
Projects in progress:
Those which are in progress until the date of preparing the
balance sheet and which will become fixed assets after
completion.
(5)
Asset allowances:
Those formed by the establishment for meeting any
depreciation in the asset value due to depreciation or
obsolescence or like depreciation allowance.
(6)
Current Asset allowances:
those formed by the establishment for meeting expected
depreciation in the asset value due accountancy policies
like the decline in the prices of closing stock and the
decline in the prices of securities.
(7)
Expenses prior to operation:
Those expenses disbursed before the start of business like
feasibility studies and the fees of preparing company’s
bylaw and contract.
(8)
Deposits with others:
the amounts paid for securing the supply of a commodity or
service to company by other parties.
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