Zakat

Do I pay Zakat on crypto?

Do I Pay Zakat on Cryptocurrency? A Comprehensive Guide

Zakat, an obligatory act of charity in Islam, is one of the five pillars of the faith. It requires Muslims who meet specific financial criteria to donate a portion of their wealth annually to those in need. Traditionally, Zakat is calculated and paid on various forms of wealth, including money, gold, silver, livestock, agricultural produce, and business assets. The rise of cryptocurrencies has introduced a new dimension to this religious obligation, leading many Muslims to wonder about the applicability of Zakat to this digital asset class.

This guide will explore the Islamic rulings on Zakat concerning cryptocurrencies, providing detailed insights on whether Zakat is applicable, how to calculate it, and the permissible methods of payment. We aim to clarify the complexities surrounding Zakat on crypto, ensuring Muslims can fulfill their religious duties in accordance with Islamic principles.

Zakat on Crypto: What You Need to Know

Zakat is one of the five pillars of Islam, and it is the obligatory charity that every Muslim who meets certain criteria must pay annually. Zakat is a way of purifying one’s wealth, expressing gratitude to Allah, and helping those who are in need. Zakat is calculated and paid on various types of wealth, such as money, gold, silver, livestock, crops, and business assets. But what about crypto? Crypto is a digital form of money that can be transferred securely and quickly over the internet. Crypto has become more popular and widely used in recent years, especially among young and tech-savvy Muslims. But do you have to pay Zakat on crypto? And if so, how do you calculate and pay it? In this article, we will answer these questions and provide some guidance on how to fulfill your Zakat obligation on crypto.

Do you have to pay Zakat on crypto?

The short answer is yes, you do have to pay Zakat on crypto, if certain conditions are met. these conditions are:

You own crypto that is equivalent or above the nisab, which is the minimum amount of wealth that makes one liable for Zakat. The nisab is based on the value of gold or silver, and it may vary depending on the source and the date of calculation. You can use a Zakat calculator to determine the nisab and the amount of Zakat you owe.
You have held the crypto for one lunar year, which is about 354 days. This means that you have not sold, exchanged, or spent the crypto during this period. If you have acquired more crypto during the year, you need to add it to your total and pay Zakat on it as well.
You intend to use the crypto as a form of currency or investment, not as a personal asset or utility. This means that you have bought the crypto with the intention of reselling it, trading it, or using it for transactions, not for storing data, accessing services, or expressing opinions.

If you meet these conditions, then you need to pay Zakat on your crypto at the rate of 2.5%, which is the same as the rate for money. You need to calculate the market value of your crypto in your local currency at the time of paying Zakat, and then multiply it by 0.025 to get the amount of Zakat you owe.

Is Zakat Obligatory on Cryptocurrency Holdings?

The consensus among Islamic scholars is that Zakat is indeed applicable to cryptocurrencies if they meet certain conditions. The rationale behind this ruling stems from considering cryptocurrencies as a form of wealth, similar to other assets subject to Zakat. The following three conditions must be met:

Nisab Threshold: Your cryptocurrency holdings must meet or exceed the Nisab threshold, which is the minimum amount of wealth that triggers the Zakat obligation. The Nisab is traditionally based on the value of either gold or silver, with scholars often recommending the silver standard as it is more favorable to the poor. The current value of Nisab fluctuates, so it’s important to verify it at the time of Zakat calculation.
Holding Period (Hawl): The cryptocurrency must be held for a complete lunar year (Hawl), which is approximately 354 days. If the value of your crypto holdings fluctuates throughout the year but remains above the Nisab threshold, Zakat is still due. Any crypto acquired during the year should be added to your total holdings for Zakat calculation at the end of the lunar year.
Intention: Zakat is due if the cryptocurrency is held with the intention of investment, trading, or generating profit. Cryptocurrencies held for personal use as a medium of exchange or speculative investment are also subject to Zakat.

How to Calculate Zakat on Cryptocurrency

Calculating Zakat on cryptocurrency involves determining the market value of your holdings at the end of the lunar year. You can use cryptocurrency exchanges or price tracking websites to find the current value in your local currency. Once you have determined the total value, multiply it by 2.5% (0.025) to calculate the amount of Zakat due.

Zakat = (Current Market Value of Cryptocurrency Holdings) x 0.025

Example: If, at the end of the lunar year, the market value of your cryptocurrency holdings is $10,000, your Zakat obligation would be:

$10,000 x 0.025 = $250

you can calculate the zakat of all your assets, including crypto assets, from here and pay directly with crypto.

Permissible Methods of Paying Zakat on Cryptocurrency

There are several permissible ways to fulfill your Zakat obligation on cryptocurrency:

Direct Cryptocurrency Donation: Donate your cryptocurrency directly to reputable Islamic charities or organizations that accept crypto donations. Ensure the charity is Zakat-eligible and uses the funds for permissible purposes.
Converting to Fiat Currency: Convert your cryptocurrency into your local fiat currency (e.g., USD, EUR) and pay Zakat in cash, bank transfer, or any other conventional method. But we are here so that you don’t have to. You can easily give your Zakat directly to those in need in cryptocurrency.
Exchange for Goods and Services: Exchange your cryptocurrency for essential goods and services that directly benefit Zakat-eligible recipients, such as food, clothing, medicine, or educational resources. This method requires careful consideration to ensure the exchange aligns with Islamic principles.

Addressing Common Concerns

Fluctuating Value: If the value of your cryptocurrency holdings fluctuates throughout the year, the Zakat calculation should be based on the value at the end of the lunar year.
Multiple Cryptocurrencies: If you hold multiple cryptocurrencies, calculate the value of each at the end of the year and sum them up to determine the total value subject to Zakat.
Staking and Yield Farming: Cryptocurrency earned through staking or yield farming is considered income and should be included in your Zakat calculation if it meets the Nisab threshold and is held for a lunar year.

Zakat on Cryptocurrency: Diverse Scholarly Opinions and Practical Guidance

While the general consensus supports the obligation of Zakat on cryptocurrencies, nuances exist within different scholarly opinions. Some scholars draw parallels between cryptocurrencies and commodities, while others view them as currencies. These differing perspectives impact the specifics of Zakat calculation. This guide presents a comprehensive overview of these various viewpoints and provides practical guidelines to help individuals navigate the complexities and fulfill their religious obligations.

You can pay Zakat on your crypto in different ways, such as:

Converting your crypto into fiat currency and paying Zakat in cash or by bank transfer.
Donating your crypto directly to a charity that accepts crypto donations, such as our islamic charity which works to provide humanitarian aid and relief to the most vulnerable and marginalized people around the world.
Exchanging your crypto for goods or services that benefit the eligible recipients of Zakat, such as food, water, medicine, shelter, education, or protection.

FAQ for Pay Zakat on Cryptocurrency

1.How to calculate Zakat on cryptocurrency?

To calculate Zakat on cryptocurrency, first determine the market value of all your cryptocurrency holdings on the day Zakat is due (end of the lunar year). Add up the value of all your different cryptocurrencies. Then, multiply the total value by 2.5% (0.025). The result is the amount of Zakat you owe.

2.Is Zakat compulsory on all cryptocurrencies?

Zakat is compulsory on cryptocurrencies that are held for investment, trading, or as a store of value, provided that the total value meets or exceeds the Nisab threshold and has been held for a complete lunar year. Cryptocurrencies held purely for personal use might be exempt.

3.What is the Nisab for cryptocurrency Zakat?

The Nisab is the minimum amount of wealth that makes one liable to pay Zakat. For cryptocurrency, the Nisab is typically based on the current market value of either 85 grams of gold or 595 grams of silver. Many scholars recommend using the silver standard as it usually benefits more people. Check the current value of silver or gold to determine the Nisab in your local currency.

4.Can I donate cryptocurrency for Zakat?

Yes, you can donate cryptocurrency directly to charities that accept crypto donations for Zakat purposes. Ensure the charity is reputable and uses the funds for Zakat-eligible recipients.

5.Which Islamic charities accept cryptocurrency for Zakat?

Many Islamic charities now accept cryptocurrency donations for Zakat.for examples include Islamic donate.

6.Do I pay Zakat on staked cryptocurrency?

Yes, you should pay Zakat on staked cryptocurrency. Staking rewards are considered income, so include both the principal amount of the staked crypto and any accrued rewards when calculating your Zakat.

7.How is Zakat calculated on crypto trading profits?

Zakat on crypto trading profits is calculated by including the profits you’ve made from trading within the total value of your assets at the end of the Zakat year. If your total assets, including these profits, exceed the Nisab, then you pay Zakat on the entire amount.

8.Is Zakat due on Bitcoin holdings?

Yes, Zakat is due on Bitcoin holdings if they meet the Nisab threshold and have been held for a lunar year with the intention of investment or trading.

9.Do I need to pay Zakat on crypto losses?

You do not pay Zakat on losses. Zakat is only applicable if your total wealth meets or exceeds the Nisab threshold after accounting for any losses. However, losses do not negate the Zakat if, overall, you still possess wealth exceeding the Nisab.

10.When is Zakat due on cryptocurrency?

Zakat on cryptocurrency is due at the end of a complete lunar year (approximately 354 days) after your assets first met or exceeded the Nisab value. This date becomes your Zakat anniversary.

11.How do I find the Nisab value for Zakat on crypto?

You can find the Nisab value by checking the current market value of 595 grams of silver or 85 grams of gold in your local currency. Many online Zakat calculators provide up-to-date Nisab values.

12.What is the Islamic ruling on Zakat for Ethereum?

The Islamic ruling on Zakat for Ethereum is the same as for Bitcoin and other cryptocurrencies: if it’s held as an investment or for trading, meets the Nisab, and has been held for a lunar year, Zakat is due.

13.Can I pay Zakat on crypto in installments?

Paying Zakat in installments is a complex issue. While Zakat is typically due annually, some scholars permit paying in installments if there is a pressing need. Consult with a knowledgeable scholar for guidance on this matter.

14.Is Zakat applicable to NFTs (Non-Fungible Tokens)?

The applicability of Zakat on NFTs is debated. If the NFT is held for investment or trading, it’s generally considered subject to Zakat, similar to other digital assets. If it’s held for personal use or collection, some scholars argue it is not subject to Zakat.

Paying Zakat on cryptocurrency is a religious obligation for Muslims who meet the specified conditions. Understanding the Nisab threshold, holding period, calculation methods, and permissible payment options is crucial for fulfilling this duty correctly. By adhering to Islamic principles and seeking guidance from knowledgeable scholars, Muslims can ensure their Zakat on cryptocurrency is accepted and beneficial to those in need. We hope this helps you understand how to pay Zakat on your crypto and fulfill your religious obligation. May Allah reward you for your generosity and bless you and your family. Donate today at IslamicDonate.com. May your charity be a source of mercy for others and blessings for you.

pay Zakat on your crypto

Cryptocurrency Ibadah / Acts of Worship Zakat

Break the Hunger Cycle

I am honored to be a part of our islamic charity team and to share with you some insights about how to break the hunger cycle. This is a vital topic that affects millions of people around the world, especially those who are living in poverty, conflict, and climate change. As a Muslim, I believe that hunger is not only a physical problem but also a spiritual one, as it deprives people of their dignity, rights, and potential. In this article, I will tell you more about the causes and consequences of hunger, and how we as an Islamic charity can help to end it.

What causes hunger?
Hunger is the result of many complex and interrelated factors that prevent people from having enough food to eat. Some of the main causes of hunger are:

Poverty: Poverty is the lack of income or resources to meet basic needs such as food, water, shelter, health, and education. Poverty is often caused by inequality, discrimination, corruption, exploitation, and lack of opportunities. People who live in poverty are more vulnerable to hunger, as they cannot afford to buy or produce enough food for themselves and their families.
Conflict: Conflict is the state of violence or hostility between groups or countries. Conflict is often caused by political, economic, social, or religious disputes. People who live in conflict zones are more exposed to hunger, as they face displacement, insecurity, disruption of markets and services, loss of livelihoods and assets, and human rights violations.
Climate change: Climate change is the alteration of the Earth’s climate due to human activities that emit greenhouse gases. Climate change is often manifested by extreme weather events such as droughts, floods, storms, heat waves, and wildfires. People who live in climate-sensitive areas are more affected by hunger, as they face crop failures, water scarcity, soil degradation, pest infestations, and diseases.

What are the consequences of hunger?
Hunger has devastating impacts on individuals, communities, and societies. Some of the main consequences of hunger are:

Malnutrition: Malnutrition is the condition of not having enough or the right kind of nutrients in the body. Malnutrition can lead to stunting (low height for age), wasting (low weight for height), underweight (low weight for age), micronutrient deficiencies (lack of vitamins and minerals), and obesity (excess weight for height). Malnutrition can impair physical growth, cognitive development, immune system function, and overall health.
Illness: Illness is the state of being sick or diseased. Illness can be caused by infections (such as malaria, tuberculosis, HIV/AIDS), chronic conditions (such as diabetes, heart disease, cancer), or mental disorders (such as depression, anxiety). Illness can reduce appetite, increase nutrient needs, and worsen health outcomes.
Death: Death is the end of life. Death can be caused by starvation (severe lack of food), dehydration (severe lack of water), or complications (such as organ failure) from malnutrition or illness. Death can deprive people of their lives and their loved ones.

How can we as an Islamic charity help to break the hunger cycle?
As an Islamic charity team, we have a great opportunity and responsibility to help to break the hunger cycle and save lives. We can do this by:

Providing food assistance: Food assistance is the provision of food or cash to people who are in need of food. Food assistance can be delivered in various forms such as general distributions (giving food or cash to households), school meals (giving food or cash to students), nutrition interventions (giving specialized foods or supplements to malnourished people), or livelihood support (giving food or cash in exchange for work or training). Food assistance can help to prevent or treat hunger and malnutrition.
Supporting food security: Food security is the state of having access to sufficient, safe, nutritious, and culturally acceptable food at all times. Food security can be achieved by improving availability (increasing food production and supply), accessibility (reducing food prices and barriers), utilization (enhancing food quality and diversity), and stability (ensuring food consistency and resilience). Food security can help to ensure adequate and balanced diets for all.
Advocating for justice: Justice is the state of being fair and equitable in the distribution of rights and resources. Justice can be promoted by addressing the root causes of hunger such as poverty, conflict and climate change. Justice can be achieved by empowering people (especially women and youth) to participate in decision-making, protecting people from violence and abuse, and holding accountable those who violate human rights and harm the environment. Justice can help to create a more peaceful and sustainable world.

I hope this article has given you some insights and ideas about how to break the hunger cycle and how we as an Islamic charity can help to end it.
I invite you to join me and our team in supporting this noble cause.
Together, we can make a difference and fulfill our duty to Allah and His creation. May Allah bless you and guide you always.

Food and Nutrition Ibadah / Acts of Worship What We Do Zakat

Sustainable Zakat

Transforming Lives Through Sustainable Zakat
The Islamic faith is rooted in principles that promote peace, compassion, and generosity. At the heart of these principles lies Zakat, a divine obligation for Muslims, serving as a means to purify one’s wealth by distributing a portion of it to those less fortunate. Our Islamic charity embarks on a unique journey to revolutionize the concept of Zakat through our Sustainable Zakat Program.

Harnessing the Power of Green Initiatives
Imagine a world where our collective contributions don’t just provide immediate relief, but also lay the groundwork for lasting change. That’s the vision we’re driving towards with our Sustainable Zakat Program. As we strive to improve the lives of the underprivileged, we understand the need for robust, sustainable solutions that can withstand the test of time. Therefore, we’re directing a portion of our Zakat funds towards green initiatives that not only benefit our local community but also embrace the care for our environment – a principle deeply rooted in Islam.

One impactful way we’re leveraging our Zakat is by investing in solar energy projects. By installing solar panels on mosques and local buildings, we’re taking a significant step towards renewable energy. This isn’t merely about reducing electricity bills; it’s about empowering our community to be self-reliant, harnessing the power of the sun, a blessing that Allah bestows upon us daily. It’s about lighting up lives, quite literally, while also preserving our environment for future generations.

Cultivating Growth with Local Organic Farming
But our environmental stewardship doesn’t stop there. Another exciting facet of our Sustainable Zakat Program is supporting local organic farmers. By doing so, we’re not only promoting healthier and more environmentally friendly food options but also contributing to the local economy.

Imagine, for a moment, the joyous face of a farmer when he reaps his bounty, knowing it was cultivated without causing harm to the earth. Picture the vibrant colors of fresh, pesticide-free fruits and vegetables that land on the plates of our community members. It’s a chain reaction of goodness, nourishing bodies with wholesome food, while also fostering a sense of unity and mutual support.

Quenching Thirst with Clean Water Projects
Water, the source of life, is another area where our Sustainable Zakat Program is making waves. It’s heartbreaking to know that many in our global community lack access to clean, safe drinking water. Therefore, we’re channeling our resources towards clean water projects, providing this basic human right to those in need, quenching their physical thirst, and offering them a beacon of hope.

By investing in these projects, we’re not just providing immediate access to clean water; we’re also establishing sustainable systems that will continue to serve these communities in the long run. Every drop of water delivered resonates with the ripple effect of our collective Zakat contributions.

Join Us in Making a Difference
The Sustainable Zakat Program is more than just a charitable initiative. It’s a testament to our faith, our commitment to social justice, and our collective responsibility towards our planet. By combining the timeless principles of Zakat with the modern need for sustainability, we’re not just giving aid; we’re building bridges towards a better, greener future.

So, we invite you to join us in this journey. Let’s transform lives, one sustainable step at a time. Because when we give, we don’t just fulfill a divine obligation; we become agents of change, embodying the true essence of Zakat.

Ibadah / Acts of Worship Report Zakat

Can you donate in islam?

Yes, donating or giving to charity is an important aspect of Islamic practice, and it is considered a way to earn reward and gain the pleasure of Allah.

The Virtuous Act of Giving in Islam: Zakat and Sadaqah

Giving to charity is a cornerstone of Islamic faith, deeply woven into the fabric of Muslim life. It’s more than just helping those in need; it’s a spiritual act with profound rewards, fostering a connection with Allah and strengthening communities. Let’s delve into the two main forms of charitable giving in Islam: Zakat and Sadaqah.

Zakat: A Pillar of Islam and Purification of Wealth

Zakat, one of the five pillars of Islam, is a mandatory form of charity. Muslims who meet a specific wealth threshold are obligated to donate a fixed percentage (2.5%) of their qualifying assets annually. Zakat on crypto (Bitcoin(BTC) – Ethereum(ETH) – all types of stable coins such as Tether – types of ETFs – assets on DeFi or types of NFTs) is also calculated based on 2.5% and you can calculate your zakat from here.
This purifies their wealth and ensures its circulation within the community. Zakat funds support various causes, including:

Providing food and shelter for the poor.
Supporting education and healthcare initiatives.
Assisting those in need during emergencies.

Sadaqah: Voluntary Charity for All

Sadaqah, meaning “voluntary charity,” encompasses a wide range of acts of generosity. It can be as simple as offering a kind word, donating money or food, or even giving your time to help others. Sadaqah is not mandatory, but it’s highly encouraged in Islam. It allows everyone, regardless of wealth, to participate in the act of giving and contribute to the well-being of their community.

The Power of Giving: Earning Rewards and Building a Better World

Giving(Sadaqah or Sadaqa) in Islam transcends mere financial contributions. It cultivates a spirit of compassion and social responsibility. By helping others, Muslims express gratitude for their blessings and fulfill their duty towards humanity. Here are some key benefits of Sadaqah in Islam:

Earning Divine Favor: Sadaqah pleases Allah and paves the way for His mercy and blessings.
Purifying Wealth: Giving Zakat and Sadaqah purifies one’s wealth and fosters a sense of detachment from material possessions.
Strengthening Communities: Charitable contributions support those in need, leading to a more just and equitable society.
Leaving a Lasting Legacy: Acts of Sadaqah Jariyah (ongoing charity), like building wells or schools, continue to benefit others even after the giver’s lifetime.

Giving in the Modern World

Today, Muslims have access to a variety of convenient and secure methods to donate, including online platforms and cryptocurrency options. This makes fulfilling Zakat and practicing Sadaqah easier than ever before.

Giving in Islam is Beautiful

Donating to charity is an important part of Islamic practice, and it is considered a way to earn reward and gain the pleasure of Allah. Through charitable giving, Muslims can help to build a more just and equitable society, and cultivate a spirit of generosity and compassion that is central to the teachings of Islam.
Giving in Islam is a beautiful expression of faith and compassion. By incorporating Zakat and Sadaqah into their lives, Muslims can contribute to a world where generosity flourishes and communities thrive. This act of giving not only benefits the recipient but also enriches the giver’s spiritual journey.

Religion Sadaqah Zakat

Cases in which zakat can be spent based on the treatises of each of the Marja’ Taqlids.

The cases in which Zakat can be spent according to the treatises of each of the Marja’ Taqlids are as follows. It has been tried to collect these cases based on the principle of his treatise.

Ayatollah Sayyid Ali al-Husseini al-Sistani: According to Ayatollah Sayyid Ali al-Husseini al-Sistani’s treatise of Islamic laws, Zakat can be spent in the following ways:

To support the needs of poor and needy individuals.
To support the needs of those who are in debt.
To support the needs of travelers who are stranded or in need of assistance.
To support the needs of those who are seeking knowledge of Islam.
To support the needs of those who are in the path of Allah, such as those who are fighting in defense of the faith.

Ayatollah Ali Khamenei: According to Ayatollah Ali Khamenei’s treatise of Islamic laws, Zakat can be spent in the following ways:

To support the needs of poor and needy individuals.
To support the needs of those who are in debt.
To support the needs of travelers who are stranded or in need of assistance.
To support the needs of those who are seeking knowledge of Islam.
To support the needs of those who are in the path of Allah, such as those who are fighting in defense of the faith.

Ayatollah Muhammad Taqi al-Modarresi: According to Ayatollah Muhammad Taqi al-Modarresi’s treatise of Islamic laws, Zakat can be spent in the following ways:

To support the needs of poor and needy individuals.
To support the needs of those who are in debt.
To support the needs of travelers who are stranded or in need of assistance.
To support the needs of those who are seeking knowledge of Islam.
To support the needs of those who are in the path of Allah, such as those who are fighting in defense of the faith.

Ayatollah Bashir al-Najafi: According to Ayatollah Bashir al-Najafi’s treatise of Islamic laws, Zakat can be spent in the following ways:

To support the needs of poor and needy individuals.
To support the needs of those who are in debt.
To support the needs of travelers who are stranded or in need of assistance.
To support the needs of those who are seeking knowledge of Islam.
To support the needs of those who are in the path of Allah, such as those who are fighting in defense of the faith.

Ayatollah Muhammad al-Fayadh: According to Ayatollah Muhammad al-Fayadh’s treatise of Islamic laws, Zakat can be spent in the following ways:

To support the needs of poor and needy individuals.
To support the needs of those who are in debt.
To support the needs of travelers who are stranded or in need of assistance.
To support the needs of those who are seeking knowledge of Islam.
To support the needs of those who are in the path of Allah, such as those who are fighting in defense of the faith.

Ayatollah Makarem Shirazi: According to Ayatollah Makarem Shirazi’s treatise of Islamic laws, Zakat can be spent in the following ways:

To support the needs of poor and needy individuals.
To support the needs of those who are in debt.
To support the needs of travelers who are stranded or in need of assistance.
To support the needs of those who are seeking knowledge of Islam.
To support the needs of those who are in the path of Allah, such as those who are fighting in defense of the faith.

Ayatollah Muhammad Saeed al-Hakim: According to Ayatollah Muhammad Saeed al-Hakim’s treatise of Islamic laws, Zakat can be spent in the following ways:

To support the needs of poor and needy individuals.
To support the needs of those who are in debt.
To support the needs of travelers who are stranded or in need of assistance.
To support the needs of those who are seeking knowledge of Islam.
To support the needs of those who are in the path of Allah, such as those who are fighting in defense of the faith.

Ayatollah Muhammad al-Yaqoubi: According to Ayatollah Muhammad al-Yaqoubi’s treatise of Islamic laws, Zakat can be spent in the following ways:

To support the needs of poor and needy individuals.
To support the needs of those who are in debt.
To support the needs of travelers who are stranded or in need of assistance.
To support the needs of those who are seeking knowledge of Islam.
Tosupport the needs of those who are in the path of Allah, such as those who are fighting in defense of the faith.

Ayatollah Sheikh Muhammad Hassan Akhtari: According to Ayatollah Sheikh Muhammad Hassan Akhtari’s treatise of Islamic laws, Zakat can be spent in the following ways:

To support the needs of poor and needy individuals.
To support the needs of those who are in debt.
To support the needs of travelers who are stranded or in need of assistance.
To support the needs of those who are seeking knowledge of Islam.
To support the needs of those who are in the path of Allah, such as those who are fighting in defense of the faith.

Ayatollah Hussein Vahid Khorasani: According to Ayatollah Hussein Vahid Khorasani’s treatise of Islamic laws, Zakat can be spent in the following ways:

To support the needs of poor and needy individuals.
To support the needs of those who are in debt.
To support the needs of travelers who are stranded or in need of assistance.
To support the needs of those who are seeking knowledge of Islam.
To support the needs of those who are in the path of Allah, such as those who are fighting in defense of the faith.

Ayatollah Mohaqiq Kabuli: According to Ayatollah Mohaqiq Kabuli’s treatise of Islamic laws, Zakat can be spent in the following ways:

To support the needs of poor and needy individuals.
To support the needs of those who are in debt.
To support the needs of travelers who are stranded or in need of assistance.
To support the needs of those who are seeking knowledge of Islam.
To support the needs of those who are in the path of Allah, such as those who are fighting in defense of the faith.

It’s important to note that the ways in which Zakat can be spent can vary slightly between different Marja’ Taqlids, depending on their interpretation of Islamic law and the needs of their specific communities. Nonetheless, the general categories of spending mentioned above are common among Shia Muslim scholars and jurists.

Religion Zakat