Is zakat obligatory on money that I contributed to establishing a contracting company and that has generated profits? Is zakat obligatory on the principal or the profits? Is it before or after debt repayment?

The money invested in establishing a contracting company: 1. If invested in trade goods such as lands or buildings: Zakat al-Tijarah (trade Zakat) is due on it. It should be valued at the time the hawl (one lunar year) passes on the money, and one-quarter of one-tenth (2.5%) of its value is to be paid. 2. If invested in non-trade items such as cars, offices, or furniture: No Zakat is due on it. 3. If invested in items that are rented out: Zakat is due on the rental income if one hawl passes on it and it reaches the nisab (minimum threshold).

Profits are subject to Zakat in all cases if they reach the nisab: If they result from items traded (like real estate): Profits are subject to Zakat at the end of the capital's hawl. If they are from rental income (e.g., constructing properties): They have an independent hawl that begins from the date of contract signing.

Debt does not affect Zakat, so Zakat becomes due when the hawl passes, regardless of the debt. However, if the debt is paid off from the cash before the hawl passes, then there is no Zakat on the amount spent to repay the debt.