The Department of Zakat Fund at the Ministry of Endowments (Awqaf) and Islamic Affairs issued a statement of the rates of zakat on shares for 39 companies listed on the Qatar Stock Exchange for the fiscal year 2020.
Head of the Zakat Fund Department, Jassim bin Mohamad Al Kubaisi stated that the fund has been issuing a table of the rates of zakat for shares for several years, to help joint-stock companies and individual shareholders to identify those who are required to pay zakat in order to pay it when it is due.
He said that Zakat Fund administration attaches importance to issuing the bulletin of the rates of zakat on shares, as the fund is the government entity to which the law has assigned the jurisdiction to collect zakat funds, and paying it to the beneficiaries who meet the conditions of legitimate banks, pointing out that the fund handles zakat calculations for small and medium-sized private companies that are not listed in the stock exchange, upon the request of these companies, affirming that the fund provides this service for companies and businessmen, believing in its vital and effective role in community.
Al Kubaisi added that the Zakat Fund Administration launched last year a service (Zakat Calculator), which allows the public and the Zakat payers to calculate all kinds of Zakat, and through which the Zakat due can be paid easily.
For his part, head of Zakat Services Division Mohamed Jaber Al Baridi stated that the Department of Research and Islamic Studies of the Zakat Services Division includes a team of legitimate researchers and financial accountants who specialize in calculating companies zakat, as they calculate the zakat of different companies in addition to issuing a bulletin of Zakat on shares listed on the stock exchange.
Al Baridi said that the Zakat Fund Administration, for two decades used to held annually a specialized course for accounting for companies zakat which helped qualify about 1500 accountants and financial managers for the account of zakat for their companies.
The bulletin for calculating shares zakat for the past year 2020 was distributed according to seven sectors.
Banking and financial services sector: It includes Qatar Islamic QIB “ the Bank” and the percentage of specific zakat per share is 0.248, Qatar International Islamic Bank QIIB (0.135), Masraf Al Rayan (0.051), Qatar First Bank (0.0231), Ijarah Holding (0.017), Dalala Mediation (0.016), Qatar and Oman Investment (0.012), and Inma Holding (0.032).
Insurance sector: It includes, the Islamic Insurance Company (0.050), and AlKhaleej Takaful Insurance Company(0.023).
Public services and consumer goods sector: It includes the Zad Holding Company, which annually pays zakat on behalf of its shareholders, Medical Supplies (0.003), Medicare (0.011), Widam Food “Livestock” (0.054), Al Meera (0.048), Stores (0.019), and Baladna (0.0055).
The transport sector: It includes the two Qatar Navigation companies (0.105) and Nakilat (0.014). The industry and trade sector: It includes Transformational (0.019), Al-Wataniya Concrete (0.044), Industries Qatar (0.049), Qatari investors (0.016), Qatar General Electricity & water Corporation (0.107), Salam International (0.019), Qatar Woqod (0.111), Gulf International Services (0.009), Mesaieed (0.004), Investment Holding Group (0.007) and Qatar Aluminum Manufacturing Company (QAMCO) (0.002).
The real estate sector includes: Al Mannai Complex (0.026), Aamal (0.003), United Development (0.014), Barwa Real Estate (no zakat on it), Ezdan Holding (0.001), Mazaya Qatar (0.0042), and Al Khor and Al Thakhira “Private Joint Stock Company” (0.09). The telecommunications sector: it includes Ooredoo (0.097) and Vodafone (0.005).
The aforementioned bulletin included a statement of how to calculate zakat on shares in a simple mathematical form as an illustrative model included a statement of how to calculate zakat on shares in a simple mathematical form as an illustrative model and that is as follows:
“If the zakat for one share in Qatar Islamic Bank is equal to (0.248), then whoever has (1000) shares must multiply the percentage of zakat per share listed in the table by the number of shares, to know that he must pay an amount of QR 248, as zakat on all the shares he owns in the bank, as he owns one thousand shares in this example, and in the same way, zakat on shares is calculated on all companies listed in the table.
The table also indicated how to calculate zakat on shares subject to speculation, by multiplying the number of shares by the market value of the share by (2.5%) to extract the value of zakat for the Hijri year, and the number of shares is multiplied by the market value of the share by (2.5775%) to extract the zakat value for the calendar year.”
Source The Peninsula