Dividend purification calculator
The part of your dividends that comes from non-compliant income, to give to the poor or to public-benefit causes.
Amount to give
0
My purification log
Kept in this browser, on this device. Note what you owe and what you have given, year by year.
Nothing noted yet.
| Year | Dividends | Interest | Given | Left to give |
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What is purification?
Purifying means getting rid of the part of an income that comes from a non-compliant source: interest earned by the company, a secondary unlawful activity. The methods that accept “mixed” companies set this purification as a condition (AAOIFI standard 21).
This amount is neither charity nor zakat: it does not belong to you. It is given away without seeking reward.
Two calculation methods
By dividend: dividend received × the company’s share of non-compliant income. This is the method of Islamic stock indices and of many funds; it needs only two figures.
By company: the company’s non-compliant income ÷ number of shares, × shares held. This is the common reading of the AAOIFI standard: you purify your share of non-compliant income even if the company pays no dividend.
Capital gains: most Shariah boards do not require purifying them; some scholars advise it as a precaution. The option is yours.
Who should receive this amount?
- The poor and needy, or public-benefit causes, according to most scholars and institutions.
- Without seeking any reward: you are getting rid of something that is not yours.
- Not for yourself or your dependants (Diyanet).
- Diyanet specifies that unlawful income must not be used for mosques.
Zakat on your shares and savings is a separate obligation, calculated on its own. See zakat on investments