Khums
Encyclopedia
Khums is the Arabic word for One Fifth (1/5). According to Shia Islamic legal terminology, it means "one-fifth of certain items which a person acquires as wealth, and which must be paid as an Islamic tax".
Khums is paid on all items regarded as ghanima, or "spoils of war" and is referred to in the Quran in the sura Al-Anfal
("Spoils"). There is disagreement within Islam about what constitutes ghanima, and thus how far-reaching khums should be. (see below). In the Shia tradition, ghanima is defined as all the profit, or surplus, of an income, while in the Sunni tradition it is more strictly defined.
While the concept of Zakat
, an obligatory giving of alms
, is observed throughout Islam
, and is one of the Five Pillars
of the faith, the nature of the tax varies considerably between various Islamic traditions.
In Shia tradition, Khums, involves an annual taxation of one-fifth of all gain, and can be compared to a tithe
, or an income tax
. In Sunni
tradition, Khums involves a one-fifth payment of only spoils of war. Sunnis
pay Zakat, which involves a one-fortieth taxation of total wealth ( and is more akin to a property tax
). Shias pay Zakat, but their definition only applies to cattle (camels, cows, sheep, and goats), silver,
gold, dates, raisins, wheat, and barley.
It is payable at the beginning of the financial year, though this is regarded as being the time at which the amount becomes clear.
The surplus is defined as that amount which is net income of a business, after deducting the annual cost from the gross income. Income includes all earnings, wages, dividend, and, in the eyes of most jurists, includes gifts, prizes, legacies also. However it does not include dowries, or inheritances from immediate family.
Annual expenses, which are deducted from income in order to calculate the surplus, would include household expenses, marriage and medical expenses, debts, and in the case of businesses, wages of employees, legal costs, and mandatory payments.
Expenses are expected to be reasonable; a person who might reasonably expect to have half his income as surplus, but has less due to profligacy, would still be obliged to pay Khums on the half he is reasonably expected to have. On the other hand, a person who is frugal, and has a larger surplus would be expected to pay Khums on the entire surplus.
→"الْغَنيمَة" in the Quran. The Arabic word ghanima has three meanings:
However one hadith (Imams of Ahlu’l-bayt) lists seven items regarded as ghanima:
While others confine the term to cover only
- "spoils of war, booty") begins with the following verse:
The chapter continues to enlighten the reader on how to address various types of situations in the battle-field (as well as lessons to be learnt).
The definition of a true believer is given at the beginning. Many of the verses are giving the believers courage (as at the beginning some were afraid), including those verses explaining the favours of Allah on the believers and the reality of the unbelievers. At the same time some are warning the believers from committing evils. Every verse is relevant to the battle-field, and continues to be.
Notes:
term "al-ghunm bil-ghurm" meaning "gains accompany liability for loss or risk"
Also in a famous supplication, the supplication after the noon prayer, the person asks God to bestow on him His favors. One of those favors which the person asks is the benefit or gain from every act of righteousness; the word used here is "al-ghanima." →"وَالْغَنيمَةَ مِنْ كُلِّ بِر" This is in accordance with the second meaning of the word.
that follow one of the four Sunni Schools of Law (Hanafi
• Shafi`i • Maliki
• Hanbali
) for the most part consider Khums to be something that exists, and do not consider it as an innovation. Followers of a contemporary Islamic movement -- Salafi
sm, the adherents of which claim to adhere to the path of the 'as-Salaf aṣ-Ṣāliḥ'
(righteous predecessors) consider the payment of Khums to be an innovation—a bid'ah.
An example of Khums seen in the Shafi`i school of law is the "Zakat on Treasure Troves". The 1991 English Translation of Umdat al-Salik wa Uddat al-Nasik
(Reliance of the Traveller and the Tools of the Worshipper) has this text as the translation in the section H6.2 (ZAKAT ON TREASURE TROVES):
As for the strict understanding, that Khums is only applicable on Ghanayam (property, movable and immovable,) surrendered by the enemy in any battle or as a result of actual warfare, this is the opinion of only some Sunnis
. (For this point one can refer to the quote above, or potentially consult the meaning of ghanimat: tafsir al manar; tafsir qartabi (Volume 4, Page 2840); tafsir razi (Volume 15, Page 164).) The other opinion is illustrated by the addition of the comment "(in war)" by Abdullah Yusuf Ali
in his translation of the meaning of the Holy Qur'an, for verse 41 of Surah al-Anfaal (8):
The significance of the brackets around the words "in war" is to show that they are an addition to the original text. This is done to highlight that this verse came down about the "Day of Testing" -- the day of the Battle of Badr
. This for some Sunnis implies that Khums is only applicable on the spoils of war. With regard to "The Spoils of Battle" this topic is discussed under section O10.0, under the chapter of the same name. This understanding of Khums is mentioned in section O10.4, under the title of "Dividing the First Fifth Taken (Khums)".
Khums is paid on all items regarded as ghanima, or "spoils of war" and is referred to in the Quran in the sura Al-Anfal
Al-Anfal
Sura Al-Anfal is the eighth chapter of the Qur'an, with 75 verses. It is a Medinan sura, completed after theBattle of Badr. It forms a pair with the next sura, At-Tawba.-Badr:...
("Spoils"). There is disagreement within Islam about what constitutes ghanima, and thus how far-reaching khums should be. (see below). In the Shia tradition, ghanima is defined as all the profit, or surplus, of an income, while in the Sunni tradition it is more strictly defined.
While the concept of Zakat
Zakat
Zakāt , one of the Five Pillars of Islam, is the giving of a fixed portion of one's wealth to charity, generally to the poor and needy.-History:Zakat, a practice initiated by Muhammed himself, has played an important role throughout Islamic history...
, an obligatory giving of alms
Alms
Alms or almsgiving is a religious rite which, in general, involves giving materially to another as an act of religious virtue.It exists in a number of religions. In Philippine Regions, alms are given as charity to benefit the poor. In Buddhism, alms are given by lay people to monks and nuns to...
, is observed throughout Islam
Islam
Islam . The most common are and . : Arabic pronunciation varies regionally. The first vowel ranges from ~~. The second vowel ranges from ~~~...
, and is one of the Five Pillars
Five Pillars of Islam
The Pillars of Islam are basic concepts and duties for accepting the religion for the Muslims.The Shi'i and Sunni both agree on the essential details for the performance of these acts, but the Shi'a do not refer to them by the same name .-Pillars of Shia:According to Shia Islam, the...
of the faith, the nature of the tax varies considerably between various Islamic traditions.
In Shia tradition, Khums, involves an annual taxation of one-fifth of all gain, and can be compared to a tithe
Tithe
A tithe is a one-tenth part of something, paid as a contribution to a religious organization or compulsory tax to government. Today, tithes are normally voluntary and paid in cash, cheques, or stocks, whereas historically tithes were required and paid in kind, such as agricultural products...
, or an income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
. In Sunni
Sunni Islam
Sunni Islam is the largest branch of Islam. Sunni Muslims are referred to in Arabic as ʾAhl ūs-Sunnah wa āl-Ǧamāʿah or ʾAhl ūs-Sunnah for short; in English, they are known as Sunni Muslims, Sunnis or Sunnites....
tradition, Khums involves a one-fifth payment of only spoils of war. Sunnis
Sunni Islam
Sunni Islam is the largest branch of Islam. Sunni Muslims are referred to in Arabic as ʾAhl ūs-Sunnah wa āl-Ǧamāʿah or ʾAhl ūs-Sunnah for short; in English, they are known as Sunni Muslims, Sunnis or Sunnites....
pay Zakat, which involves a one-fortieth taxation of total wealth ( and is more akin to a property tax
Property tax
A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...
). Shias pay Zakat, but their definition only applies to cattle (camels, cows, sheep, and goats), silver,
gold, dates, raisins, wheat, and barley.
Khums
Khums, in the Shia tradition, is applied to the business profit, or surplus, of a business income.It is payable at the beginning of the financial year, though this is regarded as being the time at which the amount becomes clear.
The surplus is defined as that amount which is net income of a business, after deducting the annual cost from the gross income. Income includes all earnings, wages, dividend, and, in the eyes of most jurists, includes gifts, prizes, legacies also. However it does not include dowries, or inheritances from immediate family.
Annual expenses, which are deducted from income in order to calculate the surplus, would include household expenses, marriage and medical expenses, debts, and in the case of businesses, wages of employees, legal costs, and mandatory payments.
Expenses are expected to be reasonable; a person who might reasonably expect to have half his income as surplus, but has less due to profligacy, would still be obliged to pay Khums on the half he is reasonably expected to have. On the other hand, a person who is frugal, and has a larger surplus would be expected to pay Khums on the entire surplus.
Ghanima
The Items eligible for khums are referred to as GhanimaGhanima
This article is about a fictional character. For other uses of the term, see GhanimaGhanima Atreides is a fictional character from the Dune universe created by Frank Herbert...
→"الْغَنيمَة" in the Quran. The Arabic word ghanima has three meanings:
- "spoils of war" or "war booty"
- gain or profit
- Livestock, in common usage usually sheep
However one hadith (Imams of Ahlu’l-bayt) lists seven items regarded as ghanima:
- the profit or the surplus of the income.
- the legitimate wealth which is mixed with some illegitimate wealth.
- mines and minerals.
- the precious stones obtained from sea by diving.
- treasures.
- the land which an unbeliever buys from a Muslim.
- the spoils of war.
While others confine the term to cover only
- “whatever of a thing you acquire as spoils of war”.
Taken in context
If read in context, "Khums" should only be paid on war booty. The ruling appears in The Qur'an 008:041. Chapter 8 of the Qur'an (Al-AnfalAl-Anfal
Sura Al-Anfal is the eighth chapter of the Qur'an, with 75 verses. It is a Medinan sura, completed after theBattle of Badr. It forms a pair with the next sura, At-Tawba.-Badr:...
- "spoils of war, booty") begins with the following verse:
- Verse 001:
YUSUFALI: They ask thee concerning (things taken as) spoils of war. Say: "(such) spoils are at the disposal of Allah and the Messenger: So fear Allah, and keep straight the relations between yourselves: Obey Allah and His Messenger, if ye do believe."
The chapter continues to enlighten the reader on how to address various types of situations in the battle-field (as well as lessons to be learnt).
The definition of a true believer is given at the beginning. Many of the verses are giving the believers courage (as at the beginning some were afraid), including those verses explaining the favours of Allah on the believers and the reality of the unbelievers. At the same time some are warning the believers from committing evils. Every verse is relevant to the battle-field, and continues to be.
- Verse 041:
YUSUFALI: "And know that out of all the booty that ye may acquire (in war), a fifth share is assigned to Allah,- and to the Messenger, and to near relatives, orphans, the needy, and the wayfarer,- if ye do believe in Allah and in the revelation We sent down to Our servant on the Day of Testing,- the Day of the meeting of the two forces. For Allah hath power over all things."
Notes:
- For the actual script please see Quran - Chapter Al-Anfal
- The quotations are in the form: verse number(s): summary of verse(s).
- Occasionally the entire verse is given because a summary would be just as long.
Taken in the literal sense
Some Muslims, typically those who are referred to as Shia, hold the view that since the word Ghanima is used, it therefore implies that the one-fifth tax of Khums also applies wherever gain or profit is involved. "Ghanima" has two meanings as mentioned above; the second meaning is illustrated by the common use of the Islamic bankingIslamic banking
Islamic banking is banking or banking activity that is consistent with the principles of Islamic law and its practical application through the development of Islamic economics. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees for loans of money...
term "al-ghunm bil-ghurm" meaning "gains accompany liability for loss or risk"
Also in a famous supplication, the supplication after the noon prayer, the person asks God to bestow on him His favors. One of those favors which the person asks is the benefit or gain from every act of righteousness; the word used here is "al-ghanima." →"وَالْغَنيمَةَ مِنْ كُلِّ بِر" This is in accordance with the second meaning of the word.
The Sunni View
SunnisSunni Islam
Sunni Islam is the largest branch of Islam. Sunni Muslims are referred to in Arabic as ʾAhl ūs-Sunnah wa āl-Ǧamāʿah or ʾAhl ūs-Sunnah for short; in English, they are known as Sunni Muslims, Sunnis or Sunnites....
that follow one of the four Sunni Schools of Law (Hanafi
Hanafi
The Hanafi school is one of the four Madhhab in jurisprudence within Sunni Islam. The Hanafi madhhab is named after the Persian scholar Abu Hanifa an-Nu‘man ibn Thābit , a Tabi‘i whose legal views were preserved primarily by his two most important disciples, Abu Yusuf and Muhammad al-Shaybani...
• Shafi`i • Maliki
Maliki
The ' madhhab is one of the schools of Fiqh or religious law within Sunni Islam. It is the second-largest of the four schools, followed by approximately 25% of Muslims, mostly in North Africa, West Africa, the United Arab Emirates, Kuwait, and in some parts of Saudi Arabia...
• Hanbali
Hanbali
The Hanbali school is one the schools of Fiqh or religious law within Sunni Islam. The jurisprudence school traces back to Imam Ahmad ibn Hanbal but was institutionalized by his students. Hanbali jurisprudence is considered very strict and conservative, especially regarding questions of dogma...
) for the most part consider Khums to be something that exists, and do not consider it as an innovation. Followers of a contemporary Islamic movement -- Salafi
Salafi
A Salafi come from Sunni Islam is a follower of an Islamic movement, Salafiyyah, that is supposed to take the Salaf who lived during the patristic period of early Islam as model examples...
sm, the adherents of which claim to adhere to the path of the 'as-Salaf aṣ-Ṣāliḥ'
Salaf
A Salaf is an early Muslim of the first three generations of proponents of the religion.-First generation:* See: List of SahabaThe Salaf are the first generation of Muslims, which included Muhammad's companions and followers at the time....
(righteous predecessors) consider the payment of Khums to be an innovation—a bid'ah.
The adherents of this movement (sometimes referred to as Salafis) consider it as such, because they find no evidence for its establishment in any of the four major Sunni sources of jurisprudence (Qur'anQur'anThe Quran , also transliterated Qur'an, Koran, Alcoran, Qur’ān, Coran, Kuran, and al-Qur’ān, is the central religious text of Islam, which Muslims consider the verbatim word of God . It is regarded widely as the finest piece of literature in the Arabic language...
(the central religious text of Islam) • SunnahSunnahThe word literally means a clear, well trodden, busy and plain surfaced road. In the discussion of the sources of religion, Sunnah denotes the practice of Prophet Muhammad that he taught and practically instituted as a teacher of the sharī‘ah and the best exemplar...
(the observed ways of living and sayings of Muhammad) • Ijma'IjmaIjmāʿ is an Arabic term referring to the consensus of the Muslim community. Various schools of thought within Islamic jurisprudence may define this consensus as that of the first generation of Muslims only; the consensus of the first three generations of Muslims; the consensus of the jurists...
(consensus of the community of Muslims) • QiyasQiyasIn Islamic jurisprudence, qiyās is the process of deductive analogy in which the teachings of the Hadith are compared and contrasted with those of the Qur'an, in order to apply a known injunction to a new circumstance and create a new injunction...
(process of analogical reasoning from a known injunction (nass) to a new injunction)).
An example of Khums seen in the Shafi`i school of law is the "Zakat on Treasure Troves". The 1991 English Translation of Umdat al-Salik wa Uddat al-Nasik
Umdat al-Salik wa Uddat al-Nasik
Umdat as-Salik wa 'Uddat an-Nasik is a classical manual of fiqh for the Shafi'i school of Islamic jurisprudence...
(Reliance of the Traveller and the Tools of the Worshipper) has this text as the translation in the section H6.2 (ZAKAT ON TREASURE TROVES):
"An immediate zakat of 20 percent is due when one finds a treasure trove that was buried in pre-Islamic times (N: or by non-Muslims, ancient or modern) if it amounts to the zakat minimum (def: h4.2) and the land is not owned. If such a treasure if found on owned land, it belongs to the owner of the land. If found in a mosque or street, or if it was buried in Islamic times, it is considered as a lost and found article (def: k27)."
As for the strict understanding, that Khums is only applicable on Ghanayam (property, movable and immovable,) surrendered by the enemy in any battle or as a result of actual warfare, this is the opinion of only some Sunnis
Sunni Islam
Sunni Islam is the largest branch of Islam. Sunni Muslims are referred to in Arabic as ʾAhl ūs-Sunnah wa āl-Ǧamāʿah or ʾAhl ūs-Sunnah for short; in English, they are known as Sunni Muslims, Sunnis or Sunnites....
. (For this point one can refer to the quote above, or potentially consult the meaning of ghanimat: tafsir al manar; tafsir qartabi (Volume 4, Page 2840); tafsir razi (Volume 15, Page 164).) The other opinion is illustrated by the addition of the comment "(in war)" by Abdullah Yusuf Ali
Abdullah Yusuf Ali
Hafiz Abdullah Yusuf Ali, CBE, FRSL was an Indian Islamic scholar who translated the Qur'an into English. His translation of the Qur'an is one of the most widely-known and used in the English-speaking world....
in his translation of the meaning of the Holy Qur'an, for verse 41 of Surah al-Anfaal (8):
"And know that out of all the booty that ye may acquire (in war), a fifth share is assigned to Allah,- and to the Messenger, and to near relatives, orphans, the needy, and the wayfarer,- if ye do believe in Allah and in the revelation We sent down to Our servant on the Day of Testing,- the Day of the meeting of the two forces. For Allah hath power over all things."
The significance of the brackets around the words "in war" is to show that they are an addition to the original text. This is done to highlight that this verse came down about the "Day of Testing" -- the day of the Battle of Badr
Battle of Badr
The Battle of Badr , fought Saturday, March 13, 624 AD in the Hejaz region of western Arabia , was a key battle in the early days of Islam and a turning point in Muhammad's struggle with his opponents among the Quraish in Mecca...
. This for some Sunnis implies that Khums is only applicable on the spoils of war. With regard to "The Spoils of Battle" this topic is discussed under section O10.0, under the chapter of the same name. This understanding of Khums is mentioned in section O10.4, under the title of "Dividing the First Fifth Taken (Khums)".