First: Zakat on Shares:

The Legal Ruling on Stock Exchange Transactions:

A share is a part of the company's capital, and it is liable to profits or losses according to the company's position. The shareholder is a partner in this company according to the number of shares he holds. Also he is free to sell his stock whenever he likes.

A share has a specific value fixed upon being offered for sale. This value differs according to the factors of supply and demand in the stock exchange market.

The legality as well as the unlawfulness of the share is determined by the nature of the company's activity. Therefore, it is not lawful to buy shares in a company that is established for usury and wine production purposes. The same applies to the unlawful manners of selling.

How to Pay Zakat on Shares:

If the company is authorized by the shareholders to pay Zakat on its shares, then the shareholder is not required to pay Zakat on his share; this is to avoid paying Zakat twice.

However, if the company did not pay Zakat, the shareholder should pay it as follows:

The quarter of the tenth (2.5 %) is due, if the shareholder keeps his shares for dealings purposes.

If he holds his shares to get its annual profits, Zakat should be as follows:

If he could manage to know how much of the companies assets his share is worth, then he should pay on such an amount the quarter of the tenth (2.5 %). Otherwise, he should add the value of his share to the rest of his money and pay Zakat on the total amount as specified above.

If the share was a stake in commercial firm, such as co-operative societies, the share in this case would be considered as part of the capital.  Then, commercial Zakat should be paid as long as Nisab has been attained and a lunar year has passed. Profits should be added to the market value of the share by the end of the year. If such value was not known, then Zakat should be paid on the dividends as long as it amounts to Nisab.

Second: Zakat on Bonds:

The Legal Ruling on Bonds Transactions:

The Bond is a part of a loan received by the company or authority which issued the bond. The company pays interest on this bond, which is not affected by the company's profit or loss. The company will pay such an interest on due time. Any bond has a nominal or original value at the time of purchase, and another market value which is affected by the factors of supply and demand.

How to Pay Zakat on Bonds:

Bonds transactions are not permissible because on them unlawful usury interests are paid. However, the holder should pay Zakat on the total nominal value of the bond regularly every year. This nominal value should be added to whatever one has in possession and as long as they amount to Nisab and a full lunar year had passed, a quarter of tenth of the final value should be paid, excluding the usury interests gained. Such usury interests are prohibited for him and should be spent in goodly deeds and what benefits the general public. Such interests should not be used for building mosques or printing copies of The Noble Qur'an. This is meant to dispose of the unlawful part of one's wealth and it is not part of any due Zakat. One should not spend such an unlawful money on either himself or his children, and it is better to be spent on those who are afflicted by famine and their likes.

Third: Properties Kept for Personal Use:

Such properties are those not kept for commercial transactions but, rather, kept for investment using their benefits.

Such properties include houses, buildings, factories, ships, cars and the like which are kept to be a source of income. Therefore, investment properties are different from other fixed assets. On the other hand, the other types of fixed assets whose conveyance could be transferred from one person to another are houses and blocks of flats which could be an investment property or a mere fixed asset.

How to Pay Zakat on Investment Properties:

Zakat should be paid regularly on the revenues as a whole after the passage of one lunar year.  These revenues should be added to any other income gained. The due Zakat should be paid at the rate of (2.5 %).