How We Estimate Zakah

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 on the next page 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 on the next page. 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

 

Continue to Distributing Zakah

 

Zakah guide compiled by M. Yaqub Mirza, Ph.D., & Saturna Capital Corporation.

The methodology for zakah calculation discussed herein has been reviewed and approved by the Fiqh Council of North America, Sharia Consultants to Amana Mutual Funds Trust. Scholarly references available on request.

Amana Mutual Funds Trust, Saturna Capital Corporation, and Saturna Brokerage Services, respectively, do not make any warranty, express or implied, and they disclaim any warranty about (i) the results to be obtained by any person in connection with the use of the zakah calculation method outlined above (“How We Estimate Zakah”); (ii) the accuracy or completeness of the zakah calculation; and (iii) its compliance with sharia law and other Islamic principles. Amana Mutual Funds Trust, Saturna Capital Corporation, and Saturna Brokerage Services will not be liable for any errors or omissions in the zakah calculation.

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