How is the zakat calculated for a company that provides engineering services after the passing of one Hijri year, considering outstanding and doubtful debts, financial entitlements for ongoing projects and assets, raw material inventory, cash in the treasury, and profits distributed to partners after deducting what has been received?

Zakat is obligatory on trade goods if a year has passed on them, and their profits are subject to zakat along with their principal.

Debts owed to the company, once their collection is confirmed, are subject to zakat if a year has passed on them. As for doubtful debts, their hawl (zakat year) begins from the day of their receipt, and it is recommended to pay zakat on them for one year only.

Debts owed by the company are not deducted from zakat funds, according to the preponderant opinion. The company may pay its debts before the hawl is due, thereby exempting them from zakat.

Cash held in the treasury is subject to zakat if a year has passed on it.

Fixed assets owned by the company for use are not subject to zakat.

The hawl for trade goods is the hawl of the money used to purchase them. The hawl for cash in the treasury that represents the price of trade goods is the hawl of the trade goods. For cash that represents payment for engineering services, its hawl begins from the time of the contract.

The hawl for debts owed to the company for items purchased by the client is the hawl of the trade goods. For debts related to engineering services, their hawl begins from the time of the contract.

To simplify zakat calculation, the company can establish a fixed annual zakat hawl starting from its establishment. When the hawl is due, it calculates the market value of raw materials in storage, adds the cash in the treasury, and confirmed collectible debts, and pays 2.5% zakat on the total. This means that anything whose hawl has not yet completed will have its zakat paid in advance, which is permissible.