Q:
1. Is zakaat payable on provident fund?
2. If payable is it only on employees portion or employers portion?
3. If payable, is the value based on market value less estimated tax payable? Note tax is only paid when money is withdrawn from the fund.
A: These types of funds if they have been entered into of your own choice then it is haraam as there is an element of gambling and interest. Hence, terminate the fund and you may retrieve your capital contributions.
And Allah Ta’ala (الله تعالى) knows best.
Answered by:
Mufti Ebrahim Salejee (Isipingo Beach)