SS 35 – Zakah

This standard aims to identify the Zakah base for Islamic financial Institutions (Institution/Institutions), and indicate the different types of zakatable assets and the liabilities (debts of the Institution) and allocations that have to be deducted from them. The standard also aims to illustrate the payable Zakah rates, and indicate the specific heads of Zakah disbursements.

The word (Institution/Institutions) is used here to refer, in short, to Islamic financial institutions including Islamic Banks.

Scope of the Standard

This standard covers identification of the Zakah base for Institutions (including Islamic insurance companies) as well as the subsidiary and the mother company of the Institution (the company). This will be done through identification of the items of financial statements that should or should not be included in calculation of the Zakah base, and the liabilities or allocations that should or should not be deducted from Zakatable assets. The standard also covers payable Zakah rates, disbursement of Zakah funds on the eight categories of Zakah recipients, and the rulings pertaining to disbursement. 2. Procedural Rulings