What is Zakat?

• What is it?

Zakat is the third pillar of Islam and consists of the percentage of accumulated surplus wealth that during a lunar year is not used, provided that the nisab (minimum amount to be paid) has been reached, which the Muslim is obliged to pay.
The literal meaning of the Arabic word Zakat is growth, increase and purification.
Its use here as a legal term refers to the small percentage that is levied on excess wealth of various specified classes – namely certain types of agricultural products, livestock, commercial goods and monetary wealth – and which is officially collected each year when it exceeds specified amounts and then distributed to specific categories of needy people.
The reason for the use of this word refers to two references in the Koran in which the connection with the original meaning appears: “Take from their wealth sadaqa with it you shall cleanse them and purify them” (9:103) and “But what you give generously seeking the face of Allah… To those it shall be multiplied” (Surah of Romans, 30:39).
Zakat is considered an act of worship similar to prayer, fasting or pilgrimage.
The obligatory nature of Zakat is specified in the Qur’an, and its importance is demonstrated by its appearance almost thirty times, connected with the command to pray: “And establish the salat, and give Zakat and obey the Messenger so that mercy may be given to you” (Surah of Light, 24:56). Believers are friends allied to one another, they enjoin what is recognized as good and forbid what is reprehensible, they establish salat, give Zakat and obey Allah and His messenger.
To such Allah will give His mercy; verily, Allah is Mighty, Wise, and All-Wise. “(Surah at-Tawbah, 9:71).
And then appears the command: “Take from their wealth sadaqa, with it you will cleanse them and purify them” (Surah at-Tawbah, 9:103).
In another passage the categories to which Zakat can be given are specified: ” The gifts (here the expression gifts, “sadaqat”, alludes specifically to zakat) are only for the needy, the poor, those who labor in collecting and distributing them, for those whose hearts are tamed, for ransoming slaves, for those burdened with debts, for the cause in the way of Allah and for the son of the way.
This is a prescription from Allah and Allah is Knowing and Wise. “.
(Surah at-Tawbah, 9:60).
Zakat is paid on materials with intrinsic value.
Zakat on paper money, under normal circumstances, would be paid on the value of the paper to the weight, and not the face value of a bank bill.
The position within Maliki fiqh is that Zakat is not applicable on the face value of paper money.
Despite this we understand that with paper money being the widespread monetary form today and other forms with intrinsic value being in disuse, we are in a situation of darura, necessity, and the harm of not paying on the face value of paper money is greater than that of paying it.
So this allows the application of zakat to the nominal value of paper money regardless of its intrinsic value.

• Who pays Zakat?

Zakat is obligatory for every individual, male or female, Muslim, who is free and sane and who has been in full possession of the minimum amount, the nisab, for one lunar year and is still in possession of it at the end of that year. There is a difference of opinion as to whether a child who has not yet reached puberty or someone who is not sane, is obligated to pay Zakat.
Zakat is 2.5% of the total sum of wealth that can be calculated monetarily, provided that the nisab is exceeded.
The nisab, or minimum amount, is the equivalent of 85 grams of gold (20 gold dinars) or 595 grams of silver (200 silver dirhams) in the local currency (this would be equivalent to 5,380 in gold and 476 in silver, as of 5/06/2024).
This minimum amount of wealth must have been held for one year. According to the consensus, the nisab will be calculated in gold, therefore the minimum amount to be valued in local currency is stipulated at 5.380€.
If one has possession of gold or silver the nisab is half a dinar for every 20 and 5 dirhams for every 200, or its equivalent in grams.

• On what is Zakat paid?

Zakat is paid on certain types of agricultural products, livestock, commercial goods, monetary wealth and other less common categories.
Zakat becomes obligatory when we reach the nisab of one of these categories and have possession of it for one lunar year.

• How much Zakat is paid?

The general amount of Zakat payable is 2.5% of the surplus wealth accumulated during a year.
Other categories, such as livestock, agriculture or assets for sale held over a long period of time, may have different considerations regarding the percentage to be paid and the regularity of payment.

• Who receives it?

Allah, exalted be He, stipulates in the Qur’an the categories that are recipients of Zakat: “The gifts (here the expression gifts, “sadaqat”, alludes specifically to zakat) are only for the needy, the poor, those who labor in collecting and distributing them, for those who have their hearts tamed, for ransoming slaves, for those burdened with debts, for the cause in the way of Allah and for the son of the way. This is a prescription from Allah and Allah is Knowing and Wise.”
(9:60) This stipulates that there are 8 categories who receive Zakat: (1) the needy, (2) the poor, (3) those who work to collect and distribute it, (4) those whose hearts are tamed (close to Islam), (5) to ransom slaves, (6) for those overwhelmed by debts, (7) for those who strive in the cause of Allah, (8) for travelers who have no means.
These are the categories mentioned in the Qur’an, but in making them applicable, the ulama have established the necessary parameters to be able to clearly discern to whom Zakat is given and what it can be used for by dividing these eight categories into further sub-categories.

• How is it collected?

The traditional way, and the practice at the time of the Prophet, peace be upon him, is that collecting and distributing Zakat is the responsibility of the person in authority among the Muslims of a community.
This, in turn, appoints people who are trustworthy and who have the knowledge of the regulations of Zakat to collect and distribute it.
Although today in many places such authority does not exist or does not have the competence to collect and distribute it and other institutions and organizations take its place, which is feasible, it is necessary to clarify that, according to Fiqh, the collection and distribution of Zakat is a responsibility of the leader of a community since it has an important socio-political component.

• How is it distributed?

Zakat has to be distributed first in the locality where it is collected to any of the categories that can receive it and it is up to the person in authority or those he delegates to decide which categories are most in need of attention, as long as they fall within the stipulated parameters.
The people who fall within the categories that can receive Zakat can request the organizations or persons in charge of distributing it to give it to them, and these same organizations and persons can distribute it to needy people without them requesting it.