Question:
If one invests 100,000 in a project for a period of five years, i.e., his capital and profits would only be returned after five years, how is the zakat due in this case? If the answer is to include 100,000 in his calculation every year, what should he do if he does not have additional money to pay the zakat due?
Prof. Dr. Monzer Kahf’s answer:
Peace be upon you and Allah’s mercy and blessings.
Zakat is obligatory on him at a rate of 2.5% every lunar year (i.e., every 354 days). The basic principle is that he pays it every year, even if from other sources. If he is unable to do so, there is no prohibition in delaying it until he receives all the money after five years, based on the rule that all money for which zakat is paid is from itself.