- Zakat is a type of almsgiving that must be paid yearly on the following items, if they are possessed in sufficient
quantities: wheat, barley, dates, raisins, gold, silver, camels, cows, and sheep.
Khums is an excess profit that is taxed. It is 20% that is paid yearly on the excess profit that a person acquires. Excess profit refers to the profit that remains after a person has paid for food, clothing, shelter, and other living necessities for oneself and the immediate family. It is advisable that khums be given to a religious authority so that it can be distributed in the appropriate way. Khums must also be paid on six other items, one of them being gems obtained while diving. However, this case in modern society tends to be rare.
Khums has been ordained in the Quran in the following verse in which God has said,
“And know that whatever profit you may attain, one fifth of it is assigned to Allah and the Messenger, and to the near relatives [of the Messenger] and the orphans, the destitute, and the wayfarer, if you have believed in Allah and that which We sent down to our servant [Muhammad].” (8:41)