Impact of Debt on Zakat Pool and Mechanism of its Calculation An Applied Jurisprudential Study

Abstract

This study discusses the issue of the impact of debt on zakat pool, and how to calculate zakat while in debt. It is a comparative jurisprudential study which quotes some jurisprudential applications to illustrate this impact, which is an issue that those who are required to pay zakat have always been exposed to and are still being exposed to every year. Thus, it is frequently raised and needs to be urgently addressed.

The study shows the impact of debt on the obligation of zakat, the money for which debt prevents zakat, the conditions of debt that prevents zakat, and the mechanism for calculating debt in zakat funds. Then, it presents old and recent jurisprudential examples in which the impact of debt on the obligation of zakat appears, namely: the wife's dowry and its impact on zakat; zakat of debt, payments received in advance, and goods purchased before their reception; zakat of the fulfillment of a sale cost; and deferred investment and housing debts.

 The study has found that debt, depending on its amount stops the obligation of zakat, whether to be due or deferred, due to the violation of two conditions which are:  to have full ownership and to be beyond the basic needs of the zakat payer. Moreover, when calculating the amount of debt from zakat funds, for the purpose of exemption from zakat, the interest of both the zakat payer and the poor shall be considered. Thus, debt shall be paid in type if this exists, otherwise by redundant funds, or funds below the minimum threshold to protect zakat money from being inadequate.