It is not permissible for the owner of the capital to stipulate that the agent must shoulder the zakat of the entire fund out of the agent’s own share. There is, however, no harm if either party stipulates that the other will pay the zakat due on the profit corresponding to his share, for that is a clearly defined portion.

If the capital itself does not reach the nisab while the arrangement remains unchanged, the amount that had been earmarked for zakat reverts to the one who had stipulated it.

When the owner of the capital is a slave or an insolvent debtor, no zakat is owed on the fund, whether the agent is a free man without debts or otherwise. Likewise, if the agent is a slave or indebted, he is not liable for zakat on his share of the profit.

If the agent uses the qarad capital to purchase sheep and then pays their zakat, two opinions are reported: one holds that the zakat is charged to the owner of the capital and deducted from the principal, while the other maintains that it is taken from the profit, after which the remaining surplus is divided between them.