At the top of the Al-Shifa Gold and Jewelry Corner , we are keen to enable our customers to comply with the Sharia obligations with ease and clarity. Among the most prominent of these obligations is calculating the Zakat on gold in Saudi Riyals, which is of great importance to everyone who owns gold, whether it is a long-term investment or part of their personal jewelry.
In this article, we provide you with a comprehensive guide that explains how to calculate Zakat on gold in Saudi Riyals, and determine the financial value due according to the precise provisions of Islamic Sharia, to ensure that Zakat is performed correctly without any confusion or error.
What is the minimum amount of gold subject to Zakat in Saudi Riyals?
It is the minimum value of gold that, if it reaches or exceeds it, zakat becomes obligatory. It is calculated by multiplying the legally prescribed nisab of gold (85 grams of 21-karat gold) by the price per gram in Saudi Riyals according to the current market. Zakat is 2.5% of the value of the gold if a full year has passed since its acquisition.
Steps to calculate Zakat on gold in Saudi Riyals
Learn the precise method for calculating Zakat on gold in Saudi Riyals, step by step, to ensure that the Zakat obligation is fulfilled according to Sharia regulations. Here are the steps:
- Determine the weight of the gold: Get the weight of the gold you own in grams.
- Knowing the minimum amount: The minimum amount is 85 grams of 21-karat gold or its equivalent value in the local currency.
- Determining the market value of gold: Multiply the weight of gold (in grams) by the current price per gram of gold in Saudi Riyals or local currency.
- Checking if the minimum amount is reached: If the value of the gold is equal to or higher than the minimum amount of gold, then zakat is obligatory.
- Calculating the Zakat rate: Zakat is calculated at a rate of 2.5% of the value of the gold.
The minimum amount of gold subject to zakat (obligatory alms) for 21-karat and 18-karat gold.
The nisab is the minimum amount of gold that a person must own in order to be obligated to pay zakat. The nisab is based on the weight of pure gold, which is 85 grams of 24-karat gold.
The minimum amount of gold for different carats:
- 21 karat:
- To calculate the minimum amount (nisab), we multiply 85 grams by the karat percentage:
85 × (21/24) = 74.375 ≈ 74.4 grams
That is, a person must own approximately 74.4 grams of 21-karat gold to pay Zakat.
- 18 karat:
- 85 × (18/24) = 63.75 ≈ 63.8 grams
Therefore, the minimum amount of 18-karat gold is approximately 63.8 grams.
Is zakat on gold calculated based on the selling price or the purchase price?
Zakat on gold is calculated based on the current market value of the gold (selling price) and not on the original purchase price. The reason for this is that zakat aims to give a percentage of the money or asset that a person owns when zakat becomes due, regardless of the previous purchase cost. It depends on the real value of the wealth at the time of calculation.
Steps for calculating Zakat on gold at the market price:
- Determine the weight of the gold you own in grams.
- Find out the current market price per gram of gold in Saudi Riyals. This is the selling price, i.e., the value you can get when you sell gold today.
- Calculate the total value of gold by multiplying the weight by the current price per gram.
- Applying the legally prescribed zakat rate of 2.5% to the total value of the gold.
- The result is the amount of Zakat that must be paid in Saudi Riyals.
Is zakat due on worn gold?
Yes, zakat is obligatory on worn gold if the conditions for zakat are met, but there are some important details:
1. Gold owned for investment or savings:
Any gold owned for the purpose of saving or investment, whether in the form of bullion, necklaces, or jewelry, must be subject to zakat at a rate of 2.5% if it reaches the minimum threshold and a full Hijri year has passed.
2. Gold worn for everyday adornment:
- According to many jurists, if gold is worn permanently for personal adornment and nothing is added to it, zakat is not obligatory on it even if it reaches the minimum threshold.
- However, if the gold is worn for safekeeping or saving and not for daily adornment, then zakat must be paid on it like any other gold.
Finally, make sure to perform Zakat on gold accurately and easily with our comprehensive guide to calculating Zakat in Saudi Riyals, and make your religious commitment a part of your smart lifestyle. Discover now the services of Qimmat Zawiya Al Shifa for Gold and Jewelry, where we provide you with all the information and tools to manage your gold holdings with confidence, and achieve a balance between financial security and Sharia compliance in a simple and convenient way.
Frequently Asked Questions
Does the zakat differ if the gold is a gift?
If you receive gold as a gift, zakat begins one year after the date of receipt if it reaches the nisab (minimum threshold), similar to personally owned gold.
When is zakat due on gold?
Zakat is imposed on gold after a full Hijri year has passed since its ownership, provided that it reaches the minimum threshold.