Two Chapter 2: The One-Fifth Tax (Khums)

In Islam, khums is a financial obligation that requires a person to pay one-fifth of their surplus income and some benefits earned and must be spent under the supervision of a qualified Mujtahid.

Lesson 30: The Things Khums Is Obligatory on It

A- The Cases in Which Khums is Obligatory

Khums becomes obligatory on seven things[1]:

1. Profit or income gained;
2. Minerals;
3. Treasure troves;
4. Lawful (Ḥalāl) Property Mixed with Unlawful (harām) Property;
5. Gems obtained from the sea by diving;
6. Spoils of war;
7. A land that a Dhimmī[2] buys from a Muslim

(Issue 1796).

First: Profit or Income Gained

if a person earns something through trade, industry, or any other means, even if he prays and fasts for a died and accepts gifts, the poor receive money for khums, Zakāt, recommended charities, and radd al‑maẓālim, provided that their incomes exceed their expenses for supporting themselves and their families, must their khums be paid (Issues 1797 &1804).

One: Khums on Inherited Property

There are no khums on Inherited Property. But there are two cases where one must pay khums on inherited property:

1. A person is related to someone but does not expect to inherit from him; he should pay khums on the inherited property.
2. A person who inherits some property and knows its owner has not paid khums on it or knows that the owner owes khums on it must pay khums on it

(Issues 1799 & 1800).

Tow: Khums on the Donated and Difted Property

In two cases, gift property does not have khums.

1. If a person receives a property from an unbeliever or person who does not believe in paying khums, it will not be obligatory for him to pay its khums.
2. If a person gives to another person something on which due khums has not been paid, the donor is responsible for its khums (Issues 1808 & 1809).

Three: Khums of Various Businesses

1. If a person has several lines of business close to each other, such as renting a property and buying and selling it, if he gains a profit from one line and makes a loss from another, he can offset the loss from that line with the profit from the other. He must calculate the benefits of all these at the end of the khums year, and if it exceeds his annual expenditure, he must pay khums from the surplus.
2. If he has two different lines of business, for example, he trades and farms, the profit and loss are calculated separately from each other. Based on obligatory precaution, he cannot offset the loss of one with the profit of the other (Issue 1818).

Four: Khums of Increasing the Benefit Price

When the price of a property increases, a person must pay khums an additional price if he sells it

(Issues 1815 & 1817).

Second: Minerals

It is obligatory to pay khums for everything extracted from the mines.

1. Mined products are:
2. Gold and silver;
3. Lead and copper;
4. Iron and oil;
5. Coal, salt, turquoise (fīrūzah), agate (ʿaqīq);
6. Alum and others that reach the Taxable limit (Niṣāb) must pay khums on it (Issue 1843).
7. The Niṣāb for mined products is fifteen common mithqāls (70.2 grams) of coined gold or 105 common mithqāls of coined silver, i.e., if the value of something that is extracted from a mine reaches the taxable limit after deducting the cost of extracting it, must be paid khums on the remainder (Issue 1844).
8. If a few persons extract something from a mine and after deducting the expenses made for that task, the value of the share of each one of them reaches the Taxable limit, they must pay khums on it (Issue 1849).

Third: Treasure-Troves

1. It is a property hidden in the underground, a tree, a mountain, or a wall that someone finds, and it is called a treasure trove (Issue 1851).
2. Taxable limits for Treasure-troves are as follows:
3. In silver, 105 mithqāls (429.187 grams) of coined silver.
4. In gold, 15 mithqāls (70.312 grams) of coined gold (Issue 1853).

If the value of the treasure trove is equal to either of these two amounts, khums becomes obligatory on it.

Fourth: Lawful Property Is Mixed With Unlawful Property

1. Lawful (Ḥalāl) property is mixed with unlawful (harām) property, so it is impossible to distinguish one from the other. If one does not know the owner and quantity of the unlawful property, he must pay khums on it, and it becomes lawful.
2. When someone pays khums on lawful property that has become mixed with unlawful property, later realizing that the amount of unlawful property is more than khums, he must give the extra amount as sadaqah

on behalf of the owner (Issue 1861).

The fifth: Gems Obtained from the Sea by Diving

The person who dives into the sea and gets something from it, whatever it is, must pay Khums on it, regardless of whether it is one person or several (Issue 1864).

The Sixth: Spoils of War

If Muslims fight a war against disbelievers (kuffār) in compliance with the command of the Imām (ʿAS) and they acquire items from the war, those items are called “ghanāʾim” (spoils of war). Its khums must be paid (Issue 1873).

The Seventh: Buying Land from a Muslim by a Dhimmī

A dhimmi[3] (Non-Muslim) lives under the protection of the Islamic government; when buying a house, shop, etc., from a Muslim, he must pay khums for it.

Question:

If a woman sells her jewelry and invests it, is khums due on its benefit?

Answer:

Yes, If interest is increased from its year, khums is due.

Exercises:

1. In what cases are khums obligatory?
2. What is the taxable limit and amount of khums on Minerals?
3. 3. In which case khums is obligatory on lawful property mixed with unlawful property?
4. Do the objects obtained from diving have a Taxable limited?

Lesson 31: Laws of Khums

B- Distribution of Khums

1. Khums is divided into two parts:
2. a) One part is the Holy Imām’s share, which must be given to a qualified Mujtahid or expended with his permission.
3. b) The second part is the share of Sadat (sahm al-sādāt), which, as an obligatory precaution, must be given to a qualified Mujtahid or a poor sayyid with the permission of the Mujtahid (Issue 1879).
4. Khums is a worship obligation, so it must be paid with the intention of proximity to Allāh, i.e., obeying him.

C- Determining the Year for Khums

1. Tradesmen, artisans, and merchants must pay khums on any excess over their annual expenses on the passing of a year since earning a profit.

2. If someone is not a tradesman by profession and gets a profit, after the passing of a year since the profit was earned, he must pay khums on the profits that exceed his annual expenditure.
3. For farmers and owners of animals (cows, sheep, and camels) and fruit trees, the year of khums is a time of obtaining benefits (Issues 1817 & 1810).

D- Year’s Expenses

There are no khums in the following cases because they are considered annual expenses:

1. Food and clothing;
2. Home furniture;
3. Consumption of the wedding ceremony;
4. Pilgrimage expenses;
5. The guest’s expenses according to his dignity (Issues 1822 & 1820).

E- One Who Has Not Paid Khums

For people who have passed the age of majority and have earned income during this time but have not paid khums, the following laws apply:

1. If he buys something from the profit that he doesn’t need and one year has passed since he earned a profit, he must pay khums for it.
2. When he needs something, and buys it according to his dignity, and does so in the middle of the year, he is not required to pay khums.
3. After the end of that year, he must reconcile with the Islamic ruler if he buys (Issue 1842).

Questions:

Question 1: Is khums obligatory on the property of a minor who has capital and earns profit?

Answer 1: It is not obligatory for non-adults to pay khums.

Question 2: The husband and wife, son and daughter all earn independent incomes but live together, and All have common expenses; what is the ruling on paying khums for this family?

Answer 2: When the children work for their father voluntarily, the father must pay khums. If they earn income for themselves, they must pay khums.

Question 3: What is the ruling on trading, buying, and selling with money without paying khums?

Answer 3: According to the question, the transaction has a problem.

Question 4: Is it permissible to perform Wuḍūʾ with water bought from money without paying khums?

Answer 4: Wuḍūʾ and Ghusl are invalid if water is purchased with money without paying khums

Exercises:

1. Is it possible to give the share of Sadat to poor Seyyed without the permission of the Islamic ruler?
2. How is the Khumsi year determined?
3. Is it correct to pray with clothes that have not been paid khums?
4. What is the law for someone who has not had khums since puberty for several years?

[1]. According to the translation of the Khums section, the first lesson describes the things Khums is obligatory on it, and the second lesson explains its laws.

[2]. Dhimmīs are People of the book (Ahl Al-Kitāb), i.e. Jews, Christians, and Zoroastrians.

[3]. An infidel who is living as a sound minority alongside Muslims and has accepted the conditions of being a Dhimmī