Zakat on Stocks & Investments
How to calculate Zakat on Bursa Malaysia shares, Islamic unit trusts, and ETFs. Two scholarly methods explained, plus the purification vs Zakat distinction.
Key Takeaways
- Two methods: full market value (2.5%) or pro-rata on company's zakatable assets
- Long-term investors: many scholars recommend Zakat on dividends only
- Short-term/active traders: Zakat on full market value of portfolio
- Islamic unit trusts and Bursa-listed ETFs follow the same rules as individual shares
- Purification of non-compliant income is separate from Zakat; zakat paid to your state authority earns an income tax rebate
Two Scholarly Methods
Full Market Value
Calculate 2.5% of the current market value of your entire portfolio.
Zakat = Portfolio Value × 2.5%
Best for: Active traders, short-term investors, simplicity
Pro-Rata (Zakatable Assets)
Calculate your share of each company's zakatable assets (cash + receivables + inventory).
Zakat = Your % × Zakatable Assets × 2.5%
Best for: Long-term investors, buy-and-hold strategy
Both methods are valid. Most scholars recommend Method 1 for simplicity, especially for diversified portfolios. Method 2 requires access to company financial statements. Consult a qualified scholar for your specific situation.
Which Stocks Count?
Individual Bursa Malaysia shares
Shares on the SC Shariah Advisory Council's list of Shariah-compliant securities, updated twice a year.
Islamic ETFs
The Shariah-compliant ETFs listed on Bursa Malaysia. Use total market value of your units.
Islamic unit trusts
Equity, money market, and sukuk funds from SC-licensed managers. Calculate on current NAV.
Islamic REITs & gold funds
Use the market value or NAV of your units on your Zakat date.
Options & futures
Most scholars consider these impermissible. Exclude from Zakat and seek purification.
Non-compliant shares
Sell and purify the gains. Zakat is still due on the principal amount.
Quick Zakat Estimate
Enter the total value of your stocks & investments to calculate
Zakat Due
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Full detailed calculatorStep-by-Step Calculation
List all investment holdings
Bursa shares, unit trust units, ETF units: get market values and NAVs on your Zakat date.
Choose your calculation method
Full market value (simpler) or pro-rata on zakatable assets.
Check the nisab threshold
Combined with other wealth, has your total been above nisab for one lunar year (haul)?
Check for zakat paid on your behalf
Tabung Haji pays zakat on depositors' savings; don't double-count balances a fund has already covered.
Calculate 2.5%
Apply 2.5% to your chosen base value to determine Zakat due. Handle purification separately.
Common Scenarios
Day trading on Bursa Malaysia
Use full market value method. Active trading makes shares equivalent to trade goods.
EPF or PRS invested in funds
Scholarly opinion varies on locked retirement savings. Many state fatwas treat EPF as zakatable when withdrawn. See our Zakat FAQ.
Learn morePurification amounts
Fund managers following the SC's screening methodology publish per-unit cleansing figures. Pay these to charity in addition to Zakat, not instead of it.
Shares held less than one year
Add to your overall wealth. If combined wealth exceeds nisab for one lunar year, Zakat is due.
Quick Answer
Zakat on stocks in Malaysia is 2.5% of the current market value of your Shariah-compliant holdings: Bursa Malaysia shares, Islamic unit trust units, and ETF units, valued on your Zakat anniversary date. Purification of non-compliant income is a separate obligation. Zakat is self-assessed, paid to your state zakat authority, and qualifies for a rebate against income tax.
Key Takeaways
- 2.5% Zakat applies to the current market value of your portfolio
- Two methods: full market value or pro-rata on company zakatable assets
- Islamic unit trusts and Bursa ETFs follow the same rules as individual shares
- Purification (paying away non-compliant income) is separate from Zakat
- Zakat paid to a state authority earns a rebate against Malaysian income tax
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Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.
Frequently Asked Questions
Do I pay Zakat on Bursa Malaysia shares I'm holding long-term?
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Yes, but the calculation method depends on your intent. Long-term holders may use the pro-rata method (Method 2), calculating on their share of the company's zakatable assets. Some scholars recommend Zakat only on dividends for long-term holdings. Consult a scholar or your state zakat authority for your situation.
What about unrealized gains?
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Using the full market value method, unrealized gains are included because you're calculating on current portfolio value on your Zakat date.
How do I handle stock losses?
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Calculate Zakat on current market value, not purchase price. If your Shariah-compliant shares have lost value, your Zakat liability is lower.
Are Islamic unit trusts and ETFs treated differently from shares?
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No. Use the market value of your units or ETF shares on your Zakat date. For Malaysian Islamic funds, the current NAV is published daily by the asset manager. Shariah-compliant ETFs listed on Bursa Malaysia are valued at their market price.
Is purification the same as Zakat?
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No, they are separate. Purification removes the small non-compliant portion of a company's income (within the SC's screening thresholds) from your returns; many Malaysian fund managers publish per-unit cleansing amounts. Zakat is your own 2.5% obligation on the value of your holdings. Doing one does not cover the other.
Does my fund or bank pay Zakat for me?
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Generally no. Unlike some countries, Malaysia has no automatic Zakat deduction on investment accounts, so zakat on shares and unit trusts is self-assessed and paid to your state zakat authority (or a body like PPZ-MAIWP in the Federal Territories). One notable exception is Lembaga Tabung Haji, which pays zakat on depositors' savings on their behalf. Zakat you pay personally qualifies for a rebate against Malaysian income tax.
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