Paying zakaah ahead of time and how to pay zakaah if his money is in the Islamic bank

Question

Praise be to Allah.

Firstly:

It is not permissible for a Muslim to invest his wealth in a
riba-based bank, or that which is called Islamic but is not, rather it
should be Islamic in nature as well as in name. If the bank is Islamic and
does not deal in riba by taking or giving interest, and it invests its
wealth and distributes the profits to the investors in accordance with the
rulings of Islamic sharee’ah, then there is nothing wrong with investing
money in it.

See also the answer to question no.
47651

Secondly:

With regard to paying zakaah in advance, the correct view is
that it is permissible, and this is the view of the majority of scholars,
but it is better not to pay zakaah in advance, unless there is a reason for
doing so.

Shaykh al-Islam Ibn Taymiyah (may Allaah have mercy on him)
said: As for paying zakaah before it is due, that is permissible according
to the majority of scholars, such as Abu Haneefah, al-Shaafa’i and Ahmad,
and it is permissible to pay zakaah in advance on livestock and gold and
silver, and trade goods, if he owns the nisaab (minimum threshold). End
quote.

Majmoo’ al-Fataawa (25/85, 86)

The scholars of the Standing Committee for Issuing Fatwas
said:

There is nothing wrong with paying zakaah one or two years in
advance, if that will serve an interest, and giving it to the poor and needy
on an annual basis. End quote.

Shaykh ‘Abd al-‘Azeez ibn Baaz, Shaykh ‘Abd al-Razzaaq
‘Afeefi, Shaykh ‘Abd-Allaah ibn Ghadyaan.

Fataawa al-Lajnah al-Daa’imah
(9/422).

Shaykh Muhammad ibn Saalih al-‘Uthaymeen (may Allaah have
mercy on him) was asked:

What is the ruling on paying zakaah for several years in
advance to disaster victims?

He replied:

Paying zakaah more than a year in advance is valid, but it is
only permissible for a few years, and it is not permissible for more than
that. But one should not pay zakaah in advance unless it is in response to a
need such as a severe famine or jihad and the like. In that case we say that
it should be paid in advance, because there may be reason to make what is
ordinarily less appropriate more appropriate, otherwise it is better not to
pay zakaah until it becomes due, because something could happen to his
wealth of destruction and the like. Whatever the case, it should be noted
that if he subsequently has more than he had when he paid in advance, zakaah
must be paid on the additional amount.

Fataawa al-Shaykh al-‘Uthaymeen
(18/328).

Thirdly:

Zakaah must be paid on all the money – both the capital and
the profits – when one year has passed from the time when the capital was
acquired and reached the nisaab. The year in question is a hijri year.

The scholars of the Standing Committee for Issuing Fatwas
were asked:

I have some wealth worth fifteen thousand riyals (15,000)
which I gave to a man to do business with, on the basis that he would have
half of the profits. Is any zakaah due on this money? Which should I pay
zakaah on, the capital, the profit or both? If zakaah is due on the capital
and we bought goods with the capital such as carpets, furniture and the
like, what is the ruling in that case?

They replied:

Zakaah is due on the wealth mentioned which has been prepared
for trade, when one year has passed. Zakaah should be paid on the capital as
well as the profits when one year has passed, even if the money was used to
buy trade goods. Their value should be worked out based on the market price
at that time, when one year has passed, and zakaah should be paid at a rate
of two and half percent (2.5%) on the total wealth, including the profits.
End quote.

Shaykh ‘Abd al-‘Azeez ibn Baaz, Shaykh ‘Abd al-Razzaaq
‘Afeefi, Shaykh ‘Abd-Allaah ibn Ghadyaan.

Fataawa al-Lajnah al-Daa’imah
(9/356, 357)

They also said:

Zakaah must be paid on the capital and profits when one year
has passed since the wealth was first acquired (the capital). The year for
the profits is the same as the year for the original capital. End quote.

Shaykh ‘Abd al-‘Azeez ibn Baaz, Shaykh ‘Abd al-Razzaaq
‘Afeefi, Shaykh ‘Abd-Allaah ibn Ghadyaan.

Fataawa al-Lajnah al-Daa’imah
(9/356, 357)

We should also point out that if the Islamic bank pays zakaah
on behalf of its customers, that is sufficient and he does not have to pay
zakaah, if the bank can be trusted to do that in the proper Islamic manner,
but he still has to pay zakaah on that which is in his possession and that
which he owns, which is not in the bank.