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Fatwas / Zakat / Is Zakat compulsory on debts?

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Question

Dear respected Shaykh, assalamu alaikum wa rahmatullahi wa barakatuh. Is Zakat on debts compulsory?

هل تجب الزكاة في القروض؟

Answer

Praise be to Allah, and may Allah’s peace and blessings be upon the Messenger of Allah, his family and his companions. Wa alaikum assalam wa rahmatullahi wa barakatuh. As to what follows: In response to your question, we say:    If the debtor is able to repay the debt immediately when it is demanded, then this money is like the money which a person possesses and Zakat is compulsory on it. However, if the debtor cannot immediately repay the debt when it is demanded, some scholars said that the Zakat for such a debt should be paid for one year. Other said that this Zakat should be paid for every year, whilst others said that there is no Zakat for such a debt. The preponderant opinion is that there is no Zakat for this debt


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