Saturday, April 13, 2024
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Apparel printing company

Fatwaa ID: 959

Question:
Salaam,

I have work and have shares in an apparel printing company that is a corporation. Do I have to calculate Zakat on inventory (shirts, hoodies, hats, ink, threads, fabric) and machinery.

We are also a new company and have not made a profit yet.

Answer:
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

Your question is not too clear. We understand that you are a partner in an apparel printing company. In such a business, the liquid or cash available will be subject to zakaah. Likewise, any zakaatable assets that the business may own well also be subject to zakaah. Similarly, raw materials that remain in the end product are also subject to zakaah. Thus, the items in your inventory will be zakaatable. The zakaah will be calculated based on the fair market value of those items. Your tools and machinery however are not subject to zakaah.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
https://askthemufti.us/

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

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