FatwaPenangTransactions & Finance
WANG FAEDAH
May an officer accept interest money from savings held in a company, and is the savings subject to zakat?
Short answer
The meeting decided that the interest money should be accepted and used for public welfare (maslahah ammah).
A reference, not a fatwa. First sentence of the summary below — read the original fatwa and consult your state authority before acting.
- Authority
- Penang State Mufti Department
- Date
- Status
- Fatwa committee decision
- Series
- Keputusan Fatwa Negeri Pulau Pinang (e-Fatwa)
- Topic
- Transactions & Finance
No evidence of gazettement in the source — this is not a gazetted fatwa.
Summary
The meeting decided that the interest money should be accepted and used for public welfare (maslahah ammah). The $10,000 savings in the company is subject to zakat at 2.5% once a full hijri year has passed. The yearly profit added to the principal capital is also subject to 2.5% zakat when its own year is completed, and so on each year.
Written in our own words from the original fatwa — check the source before acting on it.
Hendaklah menerima wang faedah dan digunakan bagi maslahah ammah.
Read the full fatwa on the Penang website (new tab)
How to cite
Cite the original fatwa and its authority. Rujuk Fatwa is only where you found it.
Penang State Mufti Department. “WANG FAEDAH”, 11 February 1970. http://efatwa.penang.gov.my/fatwa_details.php?fatwaid=809. Found via Rujuk Fatwa: https://rujukfatwa.com/en/fatwa/accepting-interest-money-company-savings-zakat/