Should One Give Zakat For Receivables?

Should one give zakat for receivables?

Receivables are examined under three classes in terms of being subject to zakat or not:

1. a) Strong Receivable: It is the receivable for lent money as debt and as price of trade goods. If this receivable is acknowledged by debtor or there is a solid evidence for the debt, the creditor needs to give zakat for it every year. If its zakat due for the previous years was not paid, they need to be paid after the debt is collected.
2. b) Medial Receivable: It is the receivable sourced by income of a good that is not for sale, e.g. receivable for a house’s rent. One needs to give zakat for the previous years for this kind of receivable as well. But the creditor needs to collect nisab amount of debt in order to be obliged to pay for the previous year’s zakat.
3. c) Weak Receivable: It is the costless receivable such as will, dowry, blood money etc. Because this kind of receivable is not a debt caused by exchange of goods. This kind of receivables do not require zakat for the previous years. Zakat is given after one year passes upon collecting it (Ibn Abidin, Radd al-Muhtar, III, 238; Mehmed Zihni, Ni’mat al-Islam, p. 739, 740).

The creditor is not responsible for giving zakat every year for the receivables denied and impossible to be collected. If this kind of receivable for which there is no hope to be taken back is somehow collected, one gives zakat for it just for the present year after one year passes upon receiving. One does not need to pay zakat for the previous years (Marghinani, al-Hidayah, II, 166-167).

Source: Presidency Of Religious Affairs The Turkey, High Board of Religious Affairs FATWA