What is the ruling regarding the commencement of the lunar year ('Hawl) for Zakah on trade goods?
Chapter on Zakat on Trade Merchandise
Al-Mughni
Book of Zakat
Primary text
The requirement for a full lunar year to pass before Zakah becomes due on trade goods is universally accepted among scholars. The Prophet (PBUH) established this principle stating, 'There is no Zakah on wealth until a full year has passed over it.' Therefore, Zakah becomes due in every subsequent year upon the completion of the hawl for wealth that meets the nisab threshold. This is the position of Al-Thawri, Al-Shafi'i, Ishaq, Abu Ubayd, and the Ashab al-Ra'y.
Supporting text
Malik held that Zakah is only due for a single year unless the wealth is intended to be continuously managed ('mudabbir'), because in the second year, the wealth did not exist as physical capital at both ends of the year, thus invalidating the obligation in that second term, similar to the first year if the capital was not physical at its beginning. This view is countered by establishing that since Zakah was due in the first year and the wealth remained above the nisab without a change in status, it must be due in the second year, just as if the value had decreased at the beginning of the second year.