Modern Assets: Investments and Crypto

It depends whether you are trading or holding for dividends. If you buy shares with the intention of selling them for profit (trading), the full value of the shares is zakatable. You treat them like business inventory. On your Zakat date, check the market value of your shares and include it in your calculation. If you buy shares to hold long-term and earn dividends, scholars differ. Some say only the dividends (the income you receive) are zakatable. Others say the full value of the shares is zakatable because they can be sold at any time. The safer approach is to include the full value.

Crypto is treated like cash or gold depending on how you use it. If you hold cryptocurrency as an investment (like Bitcoin or Ethereum), it is zakatable. On your Zakat date, check the market value in your local currency and include it in your total wealth. If you trade crypto frequently, the full value is zakatable each year. If you hold it long-term, you still pay Zakat on the value you own. Some scholars compare crypto to gold (a store of value), others compare it to cash (a medium of exchange). Either way, Zakat is due if you own it for a full year.

It depends whether you can access the money. If your pension is locked and you cannot access it until retirement, most scholars say Zakat is not due until you can withdraw it. Once you retire and start receiving payments, those payments are zakatable. If you have a pension that you can access now (like a private pension or a cash balance you control), it is zakatable immediately. The key is whether you own the wealth or not. If it is truly locked away and not yours to use, Zakat is not due.