Zakat is a capital tax levied on total net accumulated wealth (net assets), or assets after deducting all debts at the time of calculation. Zakat is taxed at a 2.5% (or 2.57% for Gregorian calendar years) rate on net worth, including cash and cash equivalents (gold and silver), capital assets and real estate. Agricultural and horticultural produce is taxed at 5% and 10% (or 5.15% and 10.3% for solar calendar years) depending on the means by which production takes place. The first rate applies to land irrigated by artificial devices (pumps, pipes, etc), while the second is applied to land watered from natural resources (rain, springs, rains, etc).
In other words, zakat rates vary with the amount of labor, degree of risk, and size of wealth involved in generating the additional wealth/ income/ produce. Zakat rate is 20% (or 20.6% for solar calendar years) on the produce of mines (extraction projects). Zakat rates on animals (livestock) depend on the species, age, and sex of the animal.
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