Khums: Khums Duty When Capital Is Lent Out and Debts Are Owed

Practical Laws of Islam as per the teachings of Imam Khamenei

Khums: Khums Duty When Capital Is Lent Out and Debts Are Owed

English:

Question #977:

Three years ago, I opened a shop with khums-paid money. My khums year ends with the end of the solar year. Until now, whenever the year ends, I see that my entire capital is in the form of loan which is lent out to people while I owe a large amount. I would be grateful if you could tell me what my duty is?

Answer #977:

You are not to pay khums if at the end of the khums year your actual capital and profit are not at your disposal or nothing is added to your capital. As for the profit created by what you sold to people on credit, if it is receivable at the end of the khums year, you should pay khums on it after subtracting the capital plus its inflation; otherwise, it will be counted as the income of the year of receipt. However, if a part of the said credit is connected to the profit gained during the khums year which has been used to purchase goods that are sold on credit, its khums should be paid once it is received.

-Imam Khamenei, Practical Laws of Islam, Importance and Conditions of Khums