How to Calculate Zakat on ASB Investment (al-Mustaghallat Method)
What Is Zakat on ASB Investment and Why It Matters
This is not just a term: zakat on ASB investment is an obligation for Muslim investors who receive dividends from Amanah Saham Bumiputera (ASB) to set aside a portion of that income as zakat.
The new approach agreed upon by the fatwa authorities and the Muzakarah Committee now uses the al-Mustaghallat zakat calculation, which means zakat is only imposed on the income earned, not on the capital or number of units.
This article clearly explains what it means, how to calculate zakat, and upcoming options for unit holders.
Read More Related Article: [Do You Need to Pay Zakat on Shares?]
What Is the al-Mustaghallat Method
The al-Mustaghallat method focuses on income earned from investment — in the context of ASB, this refers to dividends, bonuses, or income distributions — and not on the principal value of the investment itself. In other words, zakat on ASB investment is calculated based on what you earn, not what you save.
This approach distinguishes zakat on ASB investment from the traditional method that sometimes imposes zakat on the entire asset value. By focusing on dividends, the principal capital remains untouched during zakat calculation.
How Zakat on ASB Investment Is Calculated
Here is what you need to understand using the al-Mustaghallat method:
Zakat Rate
Zakat is imposed on income distribution at a rate of 2.57%. This is the official rate applied for calculation according to the latest Shariah guidelines.
Calculation Example
Take for example the ASB dividend rate is 5.75% per annum. The al-Mustaghallat zakat will be deducted based on this rate:
5.75% x 2.57% = 0.1478% (zakat rate)
Net income distribution after zakat = 5.75% - (2.57% x 5.75%) = 5.60%
This means after zakat, the net return to the investor is slightly less — but your principal capital remains untouched.
Zakat Payment Options: Individual vs Collective (Khultah)
Before 2026
Investors can calculate their own zakat (individually) using the al-Mustaghallat method at the rate of 2.57%. You need to verify the nisab and haul requirements with your respective state zakat centre.
After Khultah Implementation (Mid-2026)
Starting mid-2026, ASNB will offer a collective zakat payment option (khultah) to Muslim unit holders.
With this method, ASNB itself will manage the zakat calculation and payment on your behalf, and you will receive a net distribution after zakat is deducted.
What changes is that the process becomes easier and automatic. You do not need to calculate and pay yourself; ASNB manages it through the khultah system with mutual consent.
Why Zakat on ASB Investment Must Be Paid
This is not merely a religious obligation. It helps:
- ensure your investment is Shariah-compliant,
- fulfil your annual zakat obligation accurately,
- optimise net returns after zakat,
- assist the asnaf (eligible recipients) through zakat fund distribution.
And yes, this payment is also eligible for tax deduction during your tax declaration — a practical benefit many people forget.
Principal Capital Remains Intact
Zakat on ASB investment is now calculated based on income through the al-Mustaghallat method, with a zakat rate of 2.57% imposed on dividends or income distributions.
This approach allows your principal capital to remain intact, and starting mid-2026, the collective zakat payment option (khultah) will make this process easier for unit holders.
By understanding the basics of this calculation, you are not only complying with Shariah requirements but also clear about what you pay each year.
Ready to start calculating? Use the zakat calculator facility on the myASNB portal or refer to your state zakat centre for valid nisab and haul requirements. Refer here: https://www.asnb.com.my/zakat.php
Source: ASNB
FAQ - Frequently Asked Questions on Zakat ASB
Yes. Zakat on ASB investment is obligatory for Muslim investors who receive income (dividends) and meet zakat conditions such as reaching the nisab threshold. Zakat is calculated on the investment income, not the principal capital of ASB units.
The calculation of zakat on ASB investment uses the al-Mustaghallat method, where zakat is imposed only on income (dividends) at a rate of 2.57%. The original investment value is not taken into account in the zakat calculation.
The zakat rate for ASB investment is 2.57% of the dividend or income distribution received. For example, if the ASB dividend is 5.75%, the net rate after zakat is approximately 5.60%.
Khultah zakat means collective zakat payment. In the context of zakat on ASB investment, ASNB will calculate and pay zakat directly on behalf of unit holders who choose this option, and investors will receive net dividends after zakat deduction.
The khultah zakat facility for ASB investment is targeted for implementation in mid-2026. Before that, unit holders need to calculate and pay zakat individually using the al-Mustaghallat method.
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