We can send you a report advising you of the estimated zakah after the end of each calendar year. The report will estimate zakah for any Saturna-related account with your tax ID (including brokerage accounts held at Saturna Brokerage Services, a discount brokerage). Saturna Capital calculates zakah only for your Saturna-related accounts. Any other assets or investments you may have are not accounted for in the calculation. Your total zakah should be based on your net worth and may be different than what Saturna Capital calculates.
Our zakah estimation nets the cash flow in and out of the account. As the figure below illustrates, the beginning-of-year value is subtracted from the year-end value (adjusted for new investments and disbursements).
Reinvested dividends are excluded from the calculation since they are both disbursements and investments. Consider the examples below. Using the statement’s transaction history, zakah may be estimated as follows: New Investments of $3,100 are subtracted, and Disbursements of $1,070 are added back. The estimated amount subject to zakah for this calendar year is $468.61. Zakah is 10.3% of that amount, or $48.27. If you incur a loss for the year, no zakah is due on the account.
How It Works
Example Mutual Fund Statement for Amana Income Fund