Praise
be to Allah
Firstly:
The
share-holding manager who was one of those who invested capital and takes an
extra percentage in return for managing the company is in fact no more than
a partner; he is not an employee of this company, because:
1.
The money he
charges in return for managing the company is worked out as a percentage,
and is not a set fee. If there is no profit, he does not receive anything in
return for managing the company. Such a person is a partner, not an
employee.
2.
The fuqaha’ have
stated that it is permissible to make the share of the partner who is in
sole charge of running a ‘inaan partnership [in which two people enter into
a partnership by both investing a sum of money] greater than his partner’s
share. In fact some of them regard this as a condition of such a partnership
being valid.
Az-Zarkashi
said:
When two people
form a partnership for the purpose of mudaarabah [profit sharing] – such as
two people contributing to the capital and one of the two being in charge of
running the business, as when each of them puts in one thousand, and one of
the two will run the business – it is essential that it be stipulated that
the one who does the work should receive something in addition to the return
on his investment, such as stipulating that he receive two thirds, or half
plus a quarter. A similar case is the scenario under discussion here. Thus
what he receives in addition to the return on his investment is in return
for the effort he puts into working on his partner’s investment.
End quote from
Sharh az-Zarkashi ‘ala Mukhtasar al-Khuraqi (4/131).
We have
previously explained that this type of partnership is permissible, in the
answer to question no. 165923.
Thus it becomes
clear that what you are receiving of additional profit in terms of a
percentage in return for running this company is not subject to the same
rulings as a set fee in return for work.
Secondly:
The way to work
out zakaah in the case of the scenario mentioned in the question is as
follows:
1.
Zakaah on his
share of the company’s capital depends on the property of the company that
is subject to zakaah (e.g., cash, trade goods, etc). Zakaah is not based on
the amount contributed in order to form the company at the outset. In other
words it should be done as follows: The value of goods and materials that
were purchased for the purpose of being sold should be worked out after one
year has passed, based on the price for which they would be sold. Then the
value of any cash held by the company, on site or in bank accounts, should
be added to that total, along with any debts that are owed to the company by
others which they expect to recover. From this grand total, one quarted of
tenth (2.5%) should be given in zakaah.
2.
The same should
be done with regard to returns (profits) on the capital, because that profit
is connected to the capital, so zakaah should be paid on it at the same rate
and at the same time as the capital.
The manner of
paying zakaah on company wealth and profits has been discussed in the answer
to question no. 72315.
3.
With regard to
zakaah on the money he earned for running the company, there is a difference
of scholarly opinion on how to pay zakaah in this case. What is most likely
to be the case is that zakaah must be paid on it when one full year has
passed, just as zakaah must be paid on money that he earned as the return on
his share in the capital, regardless of whether the profit has been divided
or not yet.
Shaykh Ibn
‘Uthaymeen (may Allah have mercy on him) said:
The share of the
profit for the one who is running the business is a matter concerning which
there is a difference of scholarly opinion: should zakaah be paid on it or
not?
The correct view
is that if one year has passed and it has not yet been divided, it is still
subject to zakaah, because it is profit from capital, and zakaah is due on
it as it is also due on the capital. Furthermore, this is what appears to be
the practice among people from the time of the Messenger (blessings and
peace of Allah be upon him) until the present day: when zakaah becomes due
on wealth, it also becomes due on profits made from that wealth.
End quote from
at-Ta‘leeq ‘ala al-Kaafi (3/121).
This has been
discussed previously in the answer to question no.
139631.
And Allah knows
best.