Zakat on business

Business Zakat calculation:

Include:

• ·Cash in business accounts
• ·Inventory/stock value (at cost or market value)
• ·Accounts receivable (money owed to you)

Exclude:

• ·Fixed assets (buildings, machinery)
• ·Vehicles (unless for resale)
• ·Office equipment

Formula:

(Cash + Inventory + Receivables - Payables) × 2.5%

Calculate yearly on your business anniversary.