Khums: Paying Khums on Increased Value of Gold-Pegged Capital

Practical Laws of Islam as per the teachings of Imam Khamenei

Khums: Paying Khums on Increased Value of Gold-Pegged Capital

English:

Question #988:

A person calculates his khums year account in gold value, e.g., if his entire capital equals the value of 100 gold coins (of certain type), he will pay an equivalent of 20 coins as khums to have 80 coins left as khums-paid capital. Then if in the next year gold coin’s value increases, but his capital is still equivalent to 80 coins, is it subject to khums? Is it obligatory for him to pay khums on the increment in value?

Answer #988:

If there is an appreciation and it is possible to sell them during the khums year, after deducting the inflation, paying its khums is obligatory.

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