General Concepts and Fundamentals of the Jurisprudence of Khums

The introduction, which discussed the obligation of khums in Islamic law and how it is to be administered in detail, also included an explanation of certain issues and responses to common misconceptions. Now it is necessary to clarify and define some essential points on khums before delving into the specifics of wealth, trade, investments, and how khums applies to them. These are concepts that the religiously obligated individual, to be referred to as the mukallaf from here on, must understand beforehand, so that they can properly comprehend the rulings and issues that will be explained later in detail, especially since they will frequently appear throughout the discussions.

What is khums?

Paying khums is a divinely prescribed duty required for every mukallaf in several specific instances⁵⁴, most notably on profits earned from business, trade, or any form of profit⁵⁵ that exceeds one’s annual living expenses⁵⁶.

After deducting necessary living expenses for oneself, a person may retain 4/5 of the remaining wealth, while the other 1/5, or khums, must be given to its rightful recipients: the Infallible Imam (p)⁵⁷ and the needy descendants of Hashim (Hashemites)⁵⁸, in equal fashion.

For example, if a person’s total profit in a given year from income, gifts, and other sources, equals $100,000, and their lawful annual expenses total $90,000, then khums of $2000 is due and must be paid on the surplus of $10,000.

Once khums becomes obligatory, the individual may not freely use their wealth until the required portion ($2,000 in the case above) has been paid to its rightful recipients, as they are considered co-owners of that wealth. During the occultation (ghaybah) of the Infallible Imam, the payment should be made to his authorized representative, the qualified jurist who fulfills the conditions for taqlid (religious emulation).

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54. The jurists have listed seven instances, yet we only mention those directly applicable for practical guidance. ↩
55. Profit can come in many forms, including income, gifts, prizes, grants, and similar sources, which will be discussed further later. ↩
56. This will be explained further later. ↩
57. In our present era, this is the Twelfth Imam of the Ahl al-Bayt (p), the awaited Mahdi (may Allah hasten his reappearance). During his occultation, the collection of khums is entrusted to the qualified jurist who fulfills the conditions for issuing religious rulings, such as knowledge and piety. ↩
58. This was previously defined and explained in Part I of this book. ↩