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Nisab Threshold
85g gold or 595g silver minimum wealth required
Al-Hawl Period
Full lunar year (354 days) at 2.5% rate
Zakat Rate
2.5000% lunar or 2.577% solar year
Core Calculation Formula
Zakat Base = Zakatable Assets
(-) Liabilities payable during the financial year
(+) Instalments of liabilities due in coming financial period
(+) rights including minority, sovereign and waqf
Zakat Due = Zakat Base × Zakat Rate
Key Considerations for Zakat
Deductible Liabilities
Certain liabilities can be deducted before calculating zakat, reducing the overall obligation
Lunar Year Basis
Zakat is calculated annually based on the Islamic lunar calendar, so accurate tracking of financial holdings over time is crucial.
Private Equity
- Zakat on net Zakatable assets.
- Includes inventory, receivables, cash.
- Value by latest NAV or funding round.
Real Estate
- Income properties: Zakat on rental income.
- Development/resale: Zakat on full market value.
- Vacant land: Zakatable if held for sale.
Private Debt
- Zakat on outstanding principal and profit.
- Interest (Riba) must be purified.
- Interest is not zakatable.
Infrastructure
- Zakat due on income generated.
- Examples: Toll roads, utilities.
- Includes telecommunications projects.
Commodities
- Gold/silver: Zakat on market value.
- Includes physical, bullion, coins, ETFs.
- Hanafi: All jewelry is zakatable.
Alternative Assets
- Assets: Art, watches, collectibles.
- Zakatable: If held for resale.
- Exempt: Items for personal use.
This paper is for informational and educational purposes only and does not constitute financial or investment advice. Vennre does not endorse any specific
investment opportunity, and private market investments carry significant risks—including illiquidity, lack of transparency, and potential capital loss. No part of
this document should be construed as a recommendation for any specific financial product or service. Readers are encouraged to seek personalised advice
from qualified financial professionals before making any financial decisions.
