Issued by: International Islamic Fiqh Academy – مجمع الفقه الإسلامي 712
RESOLUTION No 1 (1/2)
CONCERNING ZAKAT ON DEBTS
The Council of the Islamic Fiqh Academy, during its second session, held in Jeddah (Kingdom of Saudi Arabia), from 10 to 16 Rabiul Thani 1406 H (22-28 December 1985);
Having looked into the studies presented about << Zakat on debts >>, and
After thorough discussions which covered the subject from its different aspects, it became evident that :
- There is no statement in the Book of Allah, Almighty, or the Sunnah of His Messenger (PBUH), elaborating (rules of) Zakat on Debts. ;
- Numerous views have been reported from the Companions and the Tabe’een (the generation after the Companions) –May Allah be satisfied with them- from the viewpoint of the method of paying Zakat on debts.
- Accordingly, the Islamic Schools of Jurisprudence have differed clearly on the subject.
4. The difference of opinion (regarding this subject) is, in turn, caused by their differing opinion regarding the (following) fundamental principle: whether receivable assets can be classified as actually received assets.
The Council RESOLVES THE FOLLOWING:
1. The lender is obligated to pay Zakat, every year, on his loaned money, if the borrower is solvent.
2. The lender is obligated to pay Zakat after the elapse of one year starting from the day he actually receives his loaned money if the borrower is impoverished or controverting.
Verily, Allah is all-knowing