In the name of Allah, the Most Merciful, the Bestower of Mercy.
May Allah bless Muhammad and his family and grant them abundant peace.

The Second Book of Zakat

Section
On Zakat on Qirād (Profit-Sharing Investment)

As far as I know, scholars unanimously agree that zakat on the capital invested in a qirād arrangement and the capital owner’s share of the profit is assessed on the basis of the capital owner’s ownership. As for the manager’s share of the profit, three positions can be derived within the school. The first is that zakat on it is assessed on the basis of the capital owner’s ownership, without regard to the manager’s ownership. The second is that it is assessed on the basis of the manager’s ownership, without regard to the capital owner’s ownership. The third is that it is assessed with reference to both parties’ ownership.

Section

The discussion of zakat on qirād funds thus comprises four topics:

The first is to identify the conditions under which zakat becomes due from the capital owner on the capital and his share of the profit—or on the capital and the entire profit, according to the view that zakat on the manager’s share of the profit is assessed on the basis of the capital owner’s ownership. This is Sahnūn’s position, Ashhab’s opinion and his transmission from Mālik, and the view preferred by Muhammad ibn al-Mawwāz.

The second is to identify the conditions under which zakat becomes due from the manager on his share of the profit, according to the position that zakat on his share is assessed on the basis of his ownership.

The third is to identify the conditions under which zakat becomes due from the manager on his share of the profit, according to the position that zakat on it is assessed with reference to both parties’ ownership.

The fourth is to identify when payment of the zakat becomes obligatory.