and this is the sole narration within the school of Imām Aḥmad: an amount equal to the debt is deducted from the wealth, so it is as though the owner does not possess it. He then pays zakah on whatever remains, provided it still reaches the nisab.

As for manifest assets—namely pasturing livestock and agricultural produce—they are in plain sight; the correct view is that debt does not nullify the obligation of zakah on them, because the Prophet ﷺ sent the collectors to their owners without requesting any clarification.

Third: The well-known position in the Hanbalī school is that whoever is owed a debt must pay its zakah once he receives it, regardless of whether the debtor is solvent and willing, insolvent, or procrastinating. The same ruling applies to property that has been usurped, stolen, or lost.

The other narration states that zakah is due on a debt only when it is owed by a solvent debtor ready to pay; if the debtor is insolvent or delaying payment, or if the property is usurped, stolen, or lost, then no zakah is owed. When the funds are finally recovered, a new lunar year begins from that point. This is the view of the other three Imams.

The author said: This is the closer of the two opinions. It was chosen by a group of Aḥmad’s followers, given precedence in al-Furūʿ, and preferred by our shaykh ʿAbd al-Raḥmān al-Saʿdī and many other scholars, for wealth that one cannot access is not subject to zakah. Zakah is an act of mutual support; a Muslim is not burdened with what he does not possess.

Decision of the Islamic Fiqh Academy regarding zakah on debts:
(Decision no. 1)

In the name of Allah, the Most Compassionate, the Most Merciful.
All praise belongs to Allah, Lord of the worlds, and may blessings and peace be upon our master Muḥammad, the Seal of the Prophets, and upon his family and companions.

To proceed:
The Council of the Islamic Fiqh Academy, affiliated with the Organization of the Islamic Conference