Do debts reduce zakaat, and is zakaat due on money owed to me?

“If the zakat recipient allows you to pay off his debts without him personally taking possession of the zakat money, it will be valid.”

“Zakaat is not payable on monies owed to a person as payment for services rendered, such as consultancy fees, accounting fees, legal fees, or similar professional services.”

“If the debtor acknowledges this debt and/or there is proof of him owing the outstanding amount, then Zakaat will have to be paid on the outstanding amount for each year (i.e.1445 onwards). If there is no proof and he is denying the existence of the debt, then Zakaat will not be paid on this amount for the year 1445.”

“In principle, liabilities that have already become due before the Zakaah date will be deducted from the wealth when calculating Zakaah on the annual Zakaah date. Future liabilities that are not yet due are not deducted.”