What is the Zakat obligation for olives that yield oil, and when is it due?
Chapter on Zakat on Crops and Fruits
Al-Mughni
Book of Zakat
Primary text
If the olives yield oil, the Zakat due is taken from the resulting oil, provided the seeds reach five Wusqs (the Nisab). This is the position held by Al-Zuhri, Al-Awza'i, Malik, and Al-Layth. They state that the olives are estimated (kharas), and the pure oil is taken as Zakat. Imam Malik specifies that Zakat is taken from the oil after pressing once the fruit reaches five Wusqs.
Supporting text
Al-Thawri and Abu Hanifa hold that Zakat should be taken from the seeds (fruit) like other fruits, arguing that since the Nisab is measured based on the state of the seeds, the extraction should occur at that stage, similar to other produce.