1. What is subject to zakah in a hospital project that is still under construction?
- Remaining cash after a Hijri year, items prepared for sale, and later accumulated income. (correct answer)
- The hospital building and equipment kept for use.
- Nothing at all until the hospital opens.
- The construction materials and devices every year even if they are kept for use.
Why
If a hospital building, equipment, devices, and fittings are kept for operation and not for sale, then there is no zakah on those fixed assets. Zakah is due on remaining construction cash if a full Hijri year passes and some remains. Once there are goods prepared for sale, such as medicines, their value is assessed as trade goods and zakah is paid at 2.5%. After the hospital operates, accumulated income and collectible debts are assessed at the end of the zakah year.