Q: Who is responsible to pay Zakat in a sole trader?
A: A sole trader is someone who owns and runs his business alone without the structure of a company and/or partnership. He bears all the risks and rewards and all the assets/liabilities are his and not the company’s or partner’s. He can employ employees without changing the structure of his business to be a company or partnership.
As such, the owner is responsible to pay the entire Zakat on the net Zakatable assets of the business.
Approved by Mufti Amjad 14th August 2023