Zakat on business in Pakistan is 2.5% of your net trade assets: stock you hold for sale (at today’s sale value), business cash and bank balances, and udhaar customers will pay you, minus supplier bills, wages, rent and taxes that are due now. Your shop, machines, vehicles and furniture are not zakatable.
Last updated: 2 November 2026 by Ahmed.
You can enter business figures in the “Business” section of our free Zakat Calculator Pakistan. It adds them to your personal wealth and checks the nisab.
What Counts for Zakat on Business?
| Zakatable (add) | Not zakatable |
|---|---|
| Stock for sale, finished goods | Shop or factory building you use |
| Raw materials that go into products | Machinery and tools |
| Goods in transit or at a godown | Delivery vehicles, rickshaws, trucks |
| Business cash and bank balances | Furniture, fridges, counters, computers |
| Udhaar customers will repay | Udhaar you do not expect to recover |
| Property or plots bought to resell | Your own home |
The rule for zakat on business is simple: things you sell are zakatable; things you use to run the business are not.
Step-by-Step: Calculating Zakat on Business Stock
- Pick your zakat date. Use the same Islamic date every year. Many traders use 1 Ramadan.
- Count stock on that date and value it at today’s market price. Many scholars accept the wholesale price you would get selling everything at once.
- Add business cash in the galla, the bank and digital wallets.
- Add receivables (udhaar) you genuinely expect to collect. Leave out doubtful or bad debts; pay zakat on them only when you receive them.
- Subtract what is due now: supplier bills, salaries, rent, utility bills and taxes owed today. For a business loan, subtract only the instalment that is due, not the whole loan.
- Add the result to your personal wealth (savings, gold, cash at home) and compare with the nisab.
- Pay 2.5% of the total.
Zakat on Business Example: A Kiryana Store
| Item | Amount |
|---|---|
| Stock at sale value | Rs 15,00,000 |
| Cash in galla and bank | Rs 3,00,000 |
| Udhaar customers will pay | Rs 2,00,000 |
| Owed to suppliers now | − Rs 4,00,000 |
| Net trade assets | Rs 16,00,000 |
| Zakat at 2.5% | Rs 40,000 |
The shop premises, the fridge and the motorcycle used for deliveries are not counted.
Zakat on Business Partnerships, Companies and Online Sellers
- Partnerships: each partner pays zakat on their share of the net trade assets. Partners can agree to pay from the business and charge each partner’s account.
- Private limited companies: in Pakistan, zakat is not deducted from company profits, so each shareholder pays zakat on the market value of their shares.
- Online sellers (Daraz, Instagram, Facebook): stock held at home or in a warehouse is trade stock. Money waiting in your seller wallet counts as cash.
- Freelancers: your laptop and software are tools, not zakatable. Money you have earned and still hold on your zakat date is.
Zakat on Business When Stock Changes All Year
That is normal. You do not track each item’s year. If your total wealth was above the nisab at the start and end of your zakat year, you pay on what you hold on your zakat date, even if stock went up and down in between.
Common Mistakes
- Valuing stock at cost price when its market value is higher (or lower).
- Counting fixed assets such as the shop, generator or loading van.
- Subtracting the whole business loan instead of only the instalment due now.
- Counting udhaar that will never come back. Pay on it only if and when you collect it.
FAQ
Is there zakat on business premises like my shop building?
No, if you use it to run the business. If you bought a property to sell for profit, it is trade stock and zakatable at market value.
Should I value stock at cost price or sale price?
At its market value on your zakat date. Many scholars allow the price you would get if you sold all of it at once to a wholesaler.
Is there zakat on business raw material in a factory?
Yes. Raw materials that become part of products for sale are zakatable. Machinery, fuel and packaging tools you use are not.
Can I give zakat in the form of goods from my shop?
Many scholars allow giving goods that a deserving person needs, valued at their market price. Cash is usually more useful to the recipient.
Is zakat due on money customers owe me?
Yes, on udhaar you expect to collect. For doubtful debts, pay zakat when you actually receive the money.
Related Guides
- Zakat Calculator Pakistan 2026
- Zakat nisab 2026 in Pakistan
- Zakat on bank accounts and savings
- Zakat on gold in Pakistan
- Business loans in Pakistan