---
title: "What is Zakat base? | IslamicOpenFinance™"
description: "The pool of qualifying wealth on which zakat is calculated, after including zakatable assets and deducting what the method allows."
url: https://islamicopenfinance.com/glossary/zakat-base/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Social finance and zakat](https://islamicopenfinance.com/glossary/#social)

Social finance and zakat

# Zakat base

The pool of qualifying wealth on which zakat is calculated, after including zakatable assets and deducting what the method allows.

The zakat base is the pool of zakatable wealth on which zakat is computed. For a company it is derived from the balance sheet by including zakatable assets such as cash, receivables and trading inventory and deducting eligible liabilities, according to the method adopted. AAOIFI's accounting standard on financial reporting for zakah addresses how institutions present and disclose zakat, and zakat authorities in several countries prescribe their own base calculations.

## Sources

- [AAOIFI, Financial Accounting Standards (issued standards list): FAS 39 Financial reporting for Zakah](https://aaoifi.com/accounting-standards-2/?lang=en)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Zakat** An obligatory annual contribution on qualifying wealth above a minimum threshold, paid to specified categories of recipients.](https://islamicopenfinance.com/glossary/zakat/) [**Nisab** The minimum amount of wealth above which zakat becomes due; for money it is set by reference to gold or silver.](https://islamicopenfinance.com/glossary/nisab/) [**Hawl** The full lunar year for which qualifying wealth must be held above the nisab before zakat becomes due on it.](https://islamicopenfinance.com/glossary/hawl/)

**Social finance and zakat**

1. [Zakat](https://islamicopenfinance.com/glossary/zakat/)
2. [Nisab](https://islamicopenfinance.com/glossary/nisab/)
3. [Waqf](https://islamicopenfinance.com/glossary/waqf/)
4. [Sadaqah](https://islamicopenfinance.com/glossary/sadaqah/)
5. [Qard hasan](https://islamicopenfinance.com/glossary/qard-hasan/)
6. [Zakat recipients (asnaf)](https://islamicopenfinance.com/glossary/zakat-recipients/)
7. [Cash waqf](https://islamicopenfinance.com/glossary/cash-waqf/)
8. [Nazir (waqf trustee)](https://islamicopenfinance.com/glossary/nazir/)

[All 221 terms](https://islamicopenfinance.com/glossary/)