Q: Do all shareholders have to pay Zakat?

A: In terms of Zakat, there are two types of shareholder:

1) The person who buys shares as an investment and wants to attain dividends – this type of shareholder pays Zakat on the percentage of Zakatable assets on the balance sheet – NOT the entire market value of the shares

2) The person who buys shares to sell – i.e. trading stock. This type of shareholder must pay Zakat on the market value

And Allah knows best!

Mufti Faraz Adam