You may consider certain short term and long term liabilities as deductible assets:
- The total value of rent, bills and salaries outstanding or overdue
- The total value of outstanding short-term commercial loans
- The next year’s noninterest portion of long term business debt
- The total value of goods purchased on credit
* Please note short term is less than 12 lunar months, and long term is more than 12 lunar months
You can also use our Business Zakat Guide here, to help you through your calculation – https://nzf.org.uk/zakat-guides/
Q: What portion of long-term and non-current liabilities can be deducted from my business Zakat calculation?
A: For long-term liabilities, only the non-interest or capital amount can be deducted only for the forthcoming lunar year on one’s Zakat anniversary.
Approved by Mufti Amjad 9th August 2023