Khums: Khums on Partner Contributions and Capital in a Non-Profiting Private School

Practical Laws of Islam as per the teachings of Imam Khamenei

Khums: Khums on Partner Contributions and Capital in a Non-Profiting Private School

English:

Question #916:

Several people have collectively established a private school. After they invested the little money they had, the founding committee decided to take a bank loan to cover other expenses. The founding committee further decided that each partner should pay a certain amount every month to complete the investment capital and to pay off the bank installments. Considering that the institution has not yet entered its profit bearing stage, is the amount paid by each of the partners liable to khums? Does khums apply to the entire capital (the value of the institution)?

Answer #916:

Khums is obligatory for each member with respect to his monthly payments towards contribution to the capital of the company, as well as on the initial share in the school’s foundation. Once each member has paid khums on his share of the capital of the company, the total capital is not liable to khums again.

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