How Business Zakat is Calculated
Business Zakat is calculated on the net zakatable wealth of a business — that is, tradeable assets minus legitimate liabilities. If this net figure meets or exceeds the Nisab threshold and has been held for a full lunar year, Zakat of 2.5% is due on the entire net amount.
What Counts as a Zakatable Business Asset?
- Cash in Hand & Bank Balances — All liquid funds available to the business.
- Inventory — Stock held for resale, valued at current market (selling) price.
- Receivables — Money owed to the business that is expected to be recovered.
What is Excluded from Business Zakat?
Fixed assets used to run the business — such as buildings, machinery, vehicles, and equipment — are not subject to Zakat. These are tools of production, not tradeable wealth.
Deductible Business Liabilities
- Payables — Amounts due to suppliers or vendors for goods and services received.
- Short-Term Loans — Current-portion borrowings due within the year.
- Expenses Payable — Accrued wages, rent, utilities, and similar obligations.
The Nisab for Business Zakat
The Nisab for business Zakat follows the silver standard — approximately 612 grams of silver valued at today's market price. In Bangladesh this is commonly estimated at around ৳52,000, though this fluctuates. Always verify the current rate before calculating.