Pay ASB Zakat via al-Mustaghallat Method

We are now approaching the end of the year, and one of the obligatory matters that must be carried out is paying zakat for those who are eligible.

Beyond its religious requirement, paying zakat is crucial for personal financial management, as one can claim a tax rebate equal to the amount of zakat paid when filing income tax assessments.

To simplify zakat calculations for Amanah Saham Nasional Berhad (ASNB) investors, the manager of the Amanah Saham Bumiputera (ASB) fund has introduced a new zakat calculation method using the al-Mustaghallat approach starting this year.

This new zakat calculation method applies to all fixed-price unit trusts under ASNB’s management.

Under the al-Mustaghallat method, zakat is calculated based on income derived from rental assets, investments, or other productive assets.

In the context of ASNB, the introduction of the al-Mustaghallat method means that zakat for fixed-price unit trusts will only be imposed on dividends (income distributions), bonuses, and special bonuses (if any) at a rate of 2.57%, compared to previously when it was calculated based on the final investment balance.

The introduction of this new method, effective from this year, is part of ASNB’s efforts to standardize zakat payments in line with industry standards, making it easier for unit holders to fulfill their zakat obligations.

This is an important and ongoing initiative by ASNB to improve services for investors, helping them manage their finances and investments more efficiently.

The use of this method is based on the legal opinions of the Muzakarah Committee of the National Council for Islamic Religious Affairs Malaysia (MKI) on 4 September 2025, as well as fatwa decisions from. The zakat assessment for ASNB fixed-price unit trust investments is determined using the al-Mustaghallat method via collective (khultah).

This confirmation ensures that the method introduced is Shariah-compliant and can be practiced by Muslims.

ASNB also targets to introduce the al-Mustaghallat zakat method via khultah starting mid-2026, where ASNB will pay zakat on behalf of eligible Muslim investors who choose this option.

Khultah refers to the collective assessment and payment of zakat, where the total zakat is determined based on the combined income distribution of the group of unit holders who opt for this method.

Once implemented, Muslim unit holders can choose either to pay zakat themselves or authorize ASNB to pay zakat on their behalf and receive net dividends after zakat deduction.

Meanwhile, until the official implementation, unit holders can apply the al-Mustaghallat method individually at a zakat rate of 2.57%. To determine the amount of zakat to be paid, investors may refer to the nisab rates set by their respective State Zakat Centers.

The al-Mustaghallat zakat calculation uses a percentage rate of 2.57% based on the Gregorian calendar as the basis for the haul calculation, taking into account the day differences between the Gregorian and Hijri calendars.

This approach is recommended by the PNB Shariah Advisory Panel and aligns with the Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI) Financial Accounting Standard (Paragraph Two) for zakat (FAS 9).

The introduction of the al-Mustaghallat zakat method is based on the views and approval of the PNB Shariah Advisory Panel (PPS PNB), which determined that the Al-Mustaghallat method is a more suitable approach that aligns with long-term investment characteristics, where investors invest with the intention of earning income distributions, not capital gains.

The Al-Mustaghallat method is also introduced to ensure zakat does not reduce the principal investment value, in line with the primary investment objective of earning income from invested funds.

Therefore, this method is considered more suitable for ASNB unit trust zakat calculations, advising investors to invest for the medium to long term to build savings for the future.

However, for variable-price unit trusts, the calculation remains the same as before, based on the final balance method for each calendar year, also at a rate of 2.57%.

The introduction of the Mustaghallat and Khultah methods is an important step, as it not only facilitates investors in fulfilling their zakat obligations but also helps them gain blessings in financial management.

Zakat calculation simulation