Frequently Asked Questions
Q1: What is the definition of nisab and haul? 
   
A1:  Nisab refers to the lowest amount of asset for which zakat has to bepaid. For gold/savings, the nisab is equivalent to the price of 86 grams of gold. Haul refers to a period of one Hijrah year that the asset has been possessed. Zakat has to be paid on an asset which has been in possession for one Haul and has reached or exceeded the nisab.
   
 Q2:  My savings constantly fluctuates and has never remained constant. Am I required to pay zakat?
   
 A2:  If the savings in the bank account decreases to below the nisab, the  person is exempted from paying zakat. However, if the savings in the bank account does not decrease below the nisab, although it may fluctuate, zakat on the lowest amount possessed during the haul is still compulsory on the person as it is in the full ownership of the owner.
 
 

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 Q3: Is it wajib for me to pay zakat every year even though I have fulfilled my zakat obligations the previous year?
 
 A3:  Yes, it is compulsory to pay zakat every year. Your savings is subject to haul and nisab. As such, even if you have paid zakat for a specific year, you are obliged to pay zakat the following years as long as it meets the haul and nisab criterias.
   
 Q4:  Is it true that a woman who wears a lot of gold jewellery is required to pay zakat on them? 
 
 A4:  According to the Fatwa Committee of Muis, gold jewellery which isused by women as adornment is not subjected to zakat unless the amount is more than the norm.
   
 Q5:  I have purchased a unit trust worth $5,000. Am I required to pay zakat for it although I have not sold it yet?
   
   
 A5:  Shares are a form of business asset. As such, all shares possessed are subjected to zakat. The rate for zakat payment is 2.5% of the market value of the shares subject to haul and nisab.
   
 

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 Q6:  Why is CPF savings subjected to Zakat although we have yet to receive it?
   
   
 A6:  A CPF savings falls under the ownership of the employee although it is maintained by the CPF Board. When the employee is deceased, the CPF savings becomes an asset which must be distributed according to Faraidh Law. This means that the employee has complete rights over
his CPF savings. As such, as long as the asset meets the haul and nisab criteria, it is subjected to zakat.
   
 A6.1: Zakat on CPF calculation has two Fatwa rulings. A Muslim who is obligated to pay Zakat on CPF is allowed to choose between the latest Fatwa  regarding Zakat on CPF savings which is as follows:

a) Fatwa 1st Ruling on CPF: If a person who receives CPF monies is living comfortably and has no difficulties in  paying Zakat every year, he/she is obligated to pay Zakat from the year nisab is reached until withdrawal of CPF monies.i.e. backdate the past years CPF balances and pay Zakat accordingly when he/she receives CPF monies (Ordinary account only). 

b) Fatwa 2nd Ruling on CPF: If a person still has financial commitment and will incur great hardship if he/she pays in arrears, Fatwa rules that the person pays Zakat based on 2.5% of the amount received from his/her CPF savings when he/she reaches 55 years old. ie. permits a single payment of Zakat upon CPF withdrawal at 55 years.
   
 Q7: Are we required to set aside all interest payments before calculating the Zakat payment to be made?
 
 A7: Yes. In the Zakat calculation, interest payments are not included.
   
 

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 Q8: Can I disburse my Zakat payment on my own?
   
 A8: Zakat is an economic system which can help solve the socio-economic problem of the Muslim Ummah. As such, it is better if your Zakat payment is made to an Amil, an official who is appointed to collect Zakat by a body which is responsible for the well being of the Muslim community, in this case, Muis. This is as practiced during the time of Rasulullah saw.This is because of the following reasons :
  • The poor and needy will be assured of receiving a regular contribution from the Zakat paid

  • Your Zakat obligation can be benefited by the other asnafs as well

  • The role of Zakat will not be as effective if every Zakat payer chooses his own way of disbursing his Zakat payment

  • The Zakat can be collectively managed efficiently and systematically and can help to solve many socio-economic problems
   
 Q9:  Can I pay my Zakat overseas and not in Singapore?
   
 A9:  The principle behind the Fatwa on Zakat is that it is wajib for the Zakat to be paid out where the source of the asset is. In this case, Zakat CPF is obliged to be paid in Singapore.
 
 

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Misconceptions Regarding Zakat Disbursement 
   
 Q1:   Can I disburse Zakat to my relatives who are poor and in need?
   
 A1:  You can disburse your Zakat payment to your close relatives. This is in fact encouraged as it will help to foster a stronger relationship with them. However, you should examine their background and ensure that they really fall in the category of the poor and needy before disbursing your Zakat.
   
 Q2:  What is the ruling on disbursing zakat to orphans and widows?
   
 A2: You have to check on their backgrounds and financial status first. This is because not all orphans and widows fall under the category of the poor and needy. There are some who have sufficient received sufficient amount of inheritance.
   
 Q3: Are all asnafs required to receive 1/8th each of the Zakat collected? Is it possible to give the Zakat collected to only 3 or 4 asnafs?
 
 A3:  Zakat is an obligation. As such, we need to perform it in the best possible way. As such, it is highly encouraged that the Zakat collected be disbursed to the 8 asnafs. In the event that no other asnafs are present in the country, then disbursing the zakat collected to 3 or 4 asnafs is allowed.
   
 

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 Q4:  A person who is a foreign citizen who is working in Singapore wants to pay his Zakat overseas. Is that allowable?
 
 A4: Zakat has to be paid in the place where the asset has been accumulated (such as working in Singapore).
   
 Q5: According to Islamic Law, the Zakat collected has to be disbursedfully within the same year. Is this done in the Singaporean context?
 
 A5:  From Islamic Law perspective, this is the best possible way. However, in the local context, there are some asnafs who are not in urgent need of Zakat. Moreover, the number of people in such asnafs is small. For example, the asnafs of Ibnissabil, Gharimin, Amil and Muallaf. As a solution, Muis will prioritize other asnafs who are more in need such as the poor and needy, Fisabilillah and Riqab. If there is surplus, it will be brought over to the next year to be disbursed.
   
 

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Last update on : 30/4/2010