Khums: Khums on Unsold Inventory and Valuation Changes

Practical Laws of Islam as per the teachings of Imam Khamenei

Khums: Khums on Unsold Inventory and Valuation Changes

English:

Question #955:

I am a shopkeeper and every year I assess the whole stock and cash I have. There are some things which are not sold by the end of the specified khums year. Is it obligatory to pay khums on those items which have not been sold by that time, or is it paid when the things are sold? However, if the khums is taken out on them prior to their sale and they are sold later, then how should I do the next year’s khums assessment? Furthermore, if I do not sell the items and their value changes, then what is the ruling regarding this situation?

Answer #955:

For the time being, khums is not obligatory on the increased price of things that have not been sold by the end of the year and no one is found to buy them. In fact, the profits acquired from their sale in the future would count as that of the sale year. However, the items, whose price increased and there was a potential buyer for them during the year yet to gain more profit you did not sell them by the end of the year, khums would apply to their increased value at the beginning of the next year. In this case, these items — at the price estimated at the year’s end and khums on the appreciation is paid — would be exempted from khums in the next year.

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