Can I subtract the amount I owe in taxes when calculating Zakah?

Short Answer

If you know for sure what your taxes will be, which is usually known by Dec 31st, then you can consider that amount a debt that you owe and deduct it from your total wealth for Zakah. Also, tax liabilities that show up on the balance sheet of a business may be deducted when valuing the company.

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Shaykh Mustafa Umar