Payment Of Zakah Research Articles

The Factors Influencing of Value based Perspective on Corporate Zakah Payment Decisions in Malaysia: A Proposed Conceptual Model

Islam requires its followers to pay the Zakah, a religious due. Zakah purifies one's wealth and uplifts the socio-economic status of the ummah simultaneously. Zakah is one of the five pillars of the Islamic faith, which is an obligatory form of “charity”, and every Muslim is expected to contribute. Zakah purifies property, but it also purifies the hearts of Zakah payers from greed and selfishness. According to National Fatwa Committee, business entities formed under the principle of syakhsiyyah i’tibariyyah (legal entity) are obliged to pay Zakah under the principle of khultah (group ownership). However, factors that influence a business entity’s Zakah payment are still not properly defined, and very limited research done on this. Malaysian Zakah institution still faces several obstacles to increase the collection of business Zakah. Most of the previous studies on this issue do not explain more detail about the factor chosen as leadership support, stakeholder engagement, and elective accountability. Hence, the purpose of this research is to propose a conceptual framework for corporate Zakah payment decisions. This research also applies the Institutional Work theory. The aim of this research is to identify Zakah payment influencing factors in business entities and take Public Listed Companies (PLCs) who are entitled as Shariah Compliant Companies as a research subject and decision-makers in Shariah Compliant Companies as the research object.

Islamic Economic Perspective and Potential of Zakah Imposement on Cryptocurrency

Indonesia is the home country for many Muslim, management and effectiveness of zakah is essential to the society. In the era of digital technology government imperative to use technology to improve the classical zakat administration ensure the transpiration and principle of easiness payment of zakah. This paper giving study of perspective of the economic islam and potential application zakah on cryptocurrency. This is a qualitative approach where the primary resource from Indonesia zakah administration laws and the secondary source as journal, article and published report. The finding of this paper suggest that government and NGO should give facility and accepting payment zakah in crypto, the capability of transfer is more transparent and cross the border of the country using blockchains technology. Give society more secure and trust in zakah organization in Indonesia. This research will assist the zakah administration in Indonesai to adopt technology in this regard.

Financial Performance and Company Zakah Payment on Islamic Banks in Indonesia

Financial performance is an indicator of commercial functions in Islamic banks, along with zakah as an indicator of social function. The influence between the two is important to know in order to encourage efforts and strategies for developing Islamic banks. This article aims to describe the description of profitability and zakat payments of Islamic Commercial Banks and to verify the effect of profitability on company zakat payments. The research method used in this research is quantitative research methods using SPSS for data analysis. This study uses secondary data from five Islamic Commercial Banks as research samples from 14 existing BUS during the 2015-2019 period. This study found the fact that the variables ROA, ROE, and BOPO simultaneously have a significant effect on zakat. Meanwhile, ROA and ROE partially have a significant effect on zakat. While BOPO partially does not affect zakat.

Religiosity, Literacy, Income and Accessibility to Awareness in Professional Zakah Payment

The aim of this research is to determine the influence of religiosity, level of literacy, income, and accessibility to the consciousness of paying profession zakâh. This research uses quantitative methods and applies multiple regression analysis. We use purposive random sampling with 124 samples which represent Moslems from 14 districts in Indonesia. Based on multiple regression analysis, it can be seen that religiosity, literacy, income, and accessibility have significant effects to the consciousness of paying profession zakâh. Therefore, this study encourages zakah institutions to improve its accessibility including location and payment to increase the consciousness of paying zakâh on profession.

Moderating Effect of Perceived Behavioral Control on Islamic Tax (Zakah) Compliance Behavior among Businessmen in Yemen

Zakah (Islamic tax) in Islam is considered to be one of the fundamental mechanisms for assistance of poverty among Muslim societies. Although Zakah plays a vital role for the survival of low-income earners (Asnaf) in Muslim countries, the Zakah collection remains low in these countries, especially in Yemen. Prior studies have elucidated that perceived behavior control (PBC) can assist to improve human behavioral intention. The main objective of this study is to extend the previously reported results by showing how different degrees of PBC have a potential influence on Muslim businessmen’s attitude and subjective norms relating to Zakah payment in forming intention to comply with Zakah. Using data collected from 202 Yemeni businessmen through self-administered survey, the results of multiple regression analysis revealed evidence of a significant interaction between (1) attitude and PBC, and (2) subjective norms and PBC in relation to behavioral intention; such that attitude and perceived norms were more strongly associated with intention to comply with Zakah among businessmen reporting higher levels of PBC. The findings are relevant to practitioners and policymakers in the field of Zakah and human behavior, particularly in Muslim majority countries. Future directions and recommendations for improving PBC are suggested.

Factors Influencing Proper Zakah Payment in Dighalia Upazila of Khulna District, Bangladesh

The research identifies factors influencing proper zakah paying behavior in Dighalia upazila of Khulna district of Bangladesh. Summary statistics shows that most zakah amounts are paid in cash and are paid in the month of Ramadan. None paid zakah through any institution rather paid personally to both relatives and non-relatives. A logistic regression was used to identify factors affecting proper zakah payment. Result shows that performers of hajj and chilla have 80 percent and 73 percent more likelihood respectively to be exact zakah payers than those who have not performed those. Regular readers of religious book have 54 percent higher probability to be exact zakah payers than other category. The study suggests taking step to increase awareness of zakah payers in order to reduce poverty and inequality. As many zakah payers are unorganized and pay in piecemeal meal to many people and in uncoordinated way, collective and coordinated approach zakah management can bring greater effect.

A REVIEW OF THE LITERATURE ON ZAKAH BETWEEN 2003 AND 2019

This research aimed to critically review literature on the development of Zakah research from 2003 through 2019. This research employed a descriptive method and a qualitative approach. Classification is to be made into 8 categories of research, namely management, poverty, Zakah payment, organizational performance, collection and distribution, tax and Zakah , development and measurement of Zakah , and others. This research found that the topic garnering the most interest was poverty. This is because Zakah would reduce the poverty rate of a country. Keywords: Zakah Literature, Zakah Issues, Poverty JEL Classifications: Z12, N30, D64 DOI: https://doi.org/10.32479/ijefi.9035

Attitude Towards Zakah on Employment Income : Comparing Outcomes Between Single Score and Multidimensional Scores

Study on attitude towards regulated social activities have been carried out in many areas (such as tax and zakah payment). However, many of these studies applied a single score of attitude in their analyses. Such a procedure, to some researchers is considered less informative, especially in the study of a complex attitude which has several dimensions. Many researchers have suggested that attitude towards a complex object should be studied by decomposing the object or issue into smaller and less complex elements on the basis of component parts, specific functions, or particular contexts. Thus, this paper offers a comparative study of outcomes between attitude measured by a single summative score and attitude measured by multidimensional factor scores. The object of attitude in this paper is zakah on employment income by eligible Muslim. In the first approach, a total of 24 items of attitude were used to represent the single score of attitude. In the second approach, principal component analysis with varimax ratation was first applied to determine the underlying dimensions of attitude. Each dimension was then named and treated as anew variable, each measured by the factor scores. Both approach were applied separately to an analysis on compliance behavior of zakah on employment income. Results suggest that attitude measured by multidimensionality scores is more informative as compared to the single summative score. Futher, the use of multidimensional scores in multivariate logistic regression improved the goodness of fit of the model over that of the single score of attitude. Thus, this improvement affects the interpretation of the whole model with respect to the relationship between the independent variables and the dependent variable, which is zakah compliance.

Quantitative Economic Evaluation of Zakah-Poverty Nexus in Kano State, Nigeria

Nigeria is the largest economy in Africa and yet, a poverty-ridden oil-producing country. Thus, poverty remains a persistent macroeconomic challenge in Nigeria with devastating consequences, especially in the Muslim populated states like Kano. Surprisingly, Kano state, which is the most populated state in Nigeria with more than 15 million people, is one of the 14 most poverty-ridden states in Nigeria, despite the practice of Zakah institution (ZI). Therefore, this study empirically evaluates the revenue base and impacts of ZI on poverty alleviation in Kano state. Hence, 1,230 copies of questionnaires were administered and seven high profile Zakah payers were interviewed. Meanwhile, the data analysis was accomplished using descriptive statistics, correlation, and regression techniques, among others. The major findings indicate that the enormous revenue base of ZI for poverty alleviation exists, because of the significant Zakah payment by high ability Zakah payers. Similarly, ZI positively impacts on poverty alleviation. All in all, the findings lend credence to the Zakah-effectiveness hypothesis. Hence, this study recommends that Kano state government should exemplify more accountability and transparency in Zakah management. Moreover, a Ministry of Zakah and Hubusi Affairs should be established with the mandates of poverty alleviation and economic empowerment in the state.

ZAKAT AS TAX CREDIT FOR HARMONIZE FISCAL SETTING IN INDONESIA

This study examines the harmonization of zakah and tax synergy through the payment of zakah as tax credit in Indonesia. The research method used is case study, with data taking through document studies, literature study and indepth interviews on zakah and tax practitioners in Bekasi and Jakarta. Zakah as a tax credit is a policy that can directly reduce the amount of tax payable. The result of integration of analysis found that the tax credit from zakah can increase the acceptance in zalcat sector and tax, compared if zakah only as cost or as deductible of taxable income. Zakah as a means of tax payment control can recruit muzaki to enter groups paying zakah as well as taxes, without causing double burden for the Moslem population. The policy is in line with PSAK 101, where zakah is not involved in the income statement. The policy also helps the role of the state to allocate funds specifically to the poor in accordance with the mandate of the 1945 Constitution, which is not found in the provisions on tax allocations.

Critical Perspective And Reconstruction Governance Organization Management Zakat In Indonesia

BAZNAS ss an official institution and given the authority in the management of zakat in Indonesia, then in order to accountability the management of zakat needs to be based on a variety of regulatory and operational strengthening. Organization Manager Zakat is the organization that manages the funds of the community i.e. the funds to charity. OPZ has the role of intermediation zakat fund convened to the community i.e. muszaki and transmitted and harnessed to the community mustahik. For a regulation related to the management of zakat be very important. This research is qualitative one, with descriptive design. While, data taking was done by observations and deeply interviews. This study used qualitative research method where the data were collected by observation and in-depth interviews. The data collection was done in natural settings . Primary data were collected through participant observation towards staff who received allowances, in-depth interviews and documentation (audio recording). Respondents in this study consist of four informants. Important findings in this research are: (1) Transparent on BAZNAS marked information in a timely, adequate, accessible, business objectives, strategies, financial condition, the company arrangement and compensation of Executive Board, the controlling shareholder, internal control and supervision system, the principle of openness and policy writing and proportionate. (2) Accountability at BAZNAS marked the details of duties and responsibility of the organ and all employees clear, aligned with the vision, mission, values and strategy BAZNAS. employees were able to on duty, responsibility, and its role in the implementation of GCG Principles, tasks and authority, ethical behaviour and employee agreed. (3) Responsibility on BAZNAS in mark awareness of responsible offices attached, awareness of the existence of social responsibility and working in a professional manner and uphold ethics and code of conduct of the organization.(4) Independence at BAZNAS in mark awareness being the responsibility of the appropriate Office attached to, awareness of social responsibility and professional ethics, and code of ethics of the Organization and maintaining a healthy work environment and is conducive and (5) Fairness in BAZNAS in the mark system of payment of Zakah are easy and simple on-line through the medium, the amount of the payment of zakat muzakki is equal to the amount agreed upon in advance and accept criticism and suggestions from other parties.

EVALUATION OF TAKĀFUL OPERATORS’ EFFORTS IN REALISING MAQASID AL- SHARĪʿAH


 Takāful has emerged as a Sharīʿah-compliant alternative to conventional insurance, which is embedded in realising its underlying maqasid (goals or objectives) of Sharīʿah. Contrary to previous studies that attempted to provide evidence that takāful products are compliant with the Sharīʿah in practice of takāful operators (TOs), this paper seeks to take a different approach to investigate their compliance with the fulfilment of the three broad categories of maqasid al-Sharīʿah. In light of the theoretical perspectives of maqasid, each objective was operationally defined for statistical analysis. Six TOs from Malaysia were selected, and five-years’ data (2011-2015) have been collected from World Bank’s websites and annual reports. Secondary data were analysed through balanced panel data approach. Hausman test results indicate that fixed effect model is more appropriate in explaining the explored phenomena. Taxes paid by TOs were found to have a significant positive impact on economic growth and poverty alleviation while payment of zakah found to have a negative impact. The prohibition of riba (interest) should not be the only decisive difference between Islamic finance and its conventional counterpart. Islamic banks (IBs) and TOs are accountable toward Allah, and thus their activities should be directed toward the fulfilment of maqasid al-Sharīʿah. While earlier published literature has explored efficiency and profitability of TOs, the current paper has attempted to focus on the ability of TOs in serving the maslaha (public interest/common good of the community).

EVALUATION OF TAKĀFUL OPERATORS’ EFFORTS IN REALISING MAQASID AL- SHARĪʿAH

T akāful has emerged as a Sharīʿah-compliant alternative to conventional insurance, which is embedded in realising its underlying maqasid ( goals or objectives) of Sharīʿah . Contrary to previous studies that attempted to provide evidence that takāful products are compliant with the Sharīʿah in practice of takāful operators (TOs), this paper seeks to take a different approach to investigate their compliance with the fulfilment of the three broad categories of maqasid al- Sharīʿah. In light of the theoretical perspectives of maqasid , each objective was operationally defined for statistical analysis. Six TOs from Malaysia were selected, and five-years’ data (2011-2015) have been collected from World Bank’s websites and annual reports. Secondary data were analysed through balanced panel data approach. Hausman test results indicate that fixed effect model is more appropriate in explaining the explored phenomena. Taxes paid by TOs were found to have a significant positive impact on economic growth and poverty alleviation while payment of zakah found to have a negative impact. The prohibition of riba (interest) should not be the only decisive difference between Islamic finance and its conventional counterpart. Islamic banks (IBs) and TOs are accountable toward Allah, and thus their activities should be directed toward the fulfilment of maqasid al- Sharīʿah . While earlier published literature has explored efficiency and profitability of TOs, the current paper has attempted to focus on the ability of TOs in serving the maslaha (public interest/common good of the community).

Pengaruh Pendidikan, Pendapatan dan Kesadaran Terhadap Minat Masyarakat Membayar Zakat di Badan Amil Zakat Nasional (BAZNAS): Studi Kasus Kota Medan

Zakat is an income instrument than can increase the number of Gross Domestic Product (GDP) of Indonesia. However, management system of zakat in Indonesia is still a lot of non-formal use of payment methods and that can not be realized properly. More people pay their zakah to zakah amil in mosque directly more than to the official institutions zakat in their city like BAZNAS. education, income, and awareness are three factors are considered to influencing the compliance of the people to make a formal payment of zakah. This research will analyze the most influencing factors and whether these three important factors can influence the people pay zakat in BAZNAS Medan. The population in this study is the people of Medan city consisting of 21 districts with random sampling system. The data obtained were then analyzed using descriptive analysis and regression analysis. The results showed that income positively affected the interest of the community to pay zakat in BAZNAS. This research is expected to help BAZNAS to increase public interest to pay zakat in BAZNAS and for can help Medans goverment to increase income

BEHAVIORAL INTENTION TO PAY ZAKAH ON EMPLOYMENT INCOME AMONG ACADEMICIANS IN KANO STATE, NIGERIA

The institution of zakah is the cornerstone of the Islamic economic system and the disbursement of the zakah fund in line with the Qur’anic injunction ensures equitable distribution and transfer of wealth from the rich to the poor. However, zakah practice in many Muslim countries left wide gap especially in realizing the goal of zakah in poverty reduction. For instance, zakah on employment income is largely neglected despite its juristic backing and changing economic structure that creates high professional income earners that form either upper middle class or lower middle class of the society. The objective of this paper is to explore the intention of income earners to pay zakah on their employment income in Kano State as this will add to the zakatable sources of the State Zakah commission. The paper employed Theory of Reasoned Action to examine the behavioral intention of 300 academics across Kano state government owned tertiary educational institutions to pay zakah on their income. Structural equation modeling was used to analyze the data collected. The overall result shows that the respondents have favorable behavioral intention towards payment of zakah on employment income. Specifically, the positive effect of both attitudinal beliefs and subjective norm on the behavioral intention is revealed. Hence, the need to come up with a comprehensive policy that will boost zakah collection, consequently its distribution to reduce extreme poverty in the state.Keywords: Zakah, Employment Income, Attitudes, Subjective Norm, Behavioral IntentionJEL Classification: H2, H310

OPINION OF THE ZAKAH RECIPIENTS ABOUT THE ROLE OF ZAKAH ON THE HOUSEHOLD FOOD SECURITY: EVIDENCE FROM THE RURAL BANGLADESH

All economically solvent muslims according to the eligibility yardstick of giving zakah, are oblized to pay zakah. Payment of zakah is to distribute a certain part of once wealth among the poor, as per the Islamic philosophy, so that the poor can graduate from poverty utilizing this zakah fund. The prime objective of this study is to assess the opinion of the zakah recipients about the impact of zakah funds on their living- standard in terms of food security. Logit model is used to assess the opinion of the zakah recipients on their food security status. The study found no significant impact of zakah fund on the food security of some selected receipents in the rural areas of Bangladesh.Keywords: Zakah, Food Security, BangladeshJEL Classification: A13, B59, C02, D14, M21, P46

Zakah on Employment Income in Muslims Majority States of Nigeria: Any Cause for Alarm?

This paper aims at adding to reliable solutions of the menace of poverty in the Muslim majority states of Nigeria by providing facts that buttress the payment of Zakah on employment and professional income as a powerful source of funds for dealing with the harsh effect of poverty among Muslim communities. The paper is purely a literature review research that explores the jurisprudential debate and ruling on Zakah on employment income and traces how some Muslim majority jurisdictions benefitted immensely towards eradicating poverty using proceeds from Zakah on employment and professional income. In view of this, the paper recommends to those in authority to take a juristic stance on the matter and generate Zakah funds from employment and professional income as well as ensure proper disbursement of the funds to the target group in order to curb the poverty situations of the Muslim majority states in Nigeria and beyond.

MODEL PERILAKU KEPATUHAN ZAKAT: SUATU PENDEKATAN TEORI

Zakah is one of the religious orders that must be complied by every Muslim who had the capacity to do so. The level of such complience was affected by the faith factor. However, if payment of zakah was obliged through the formal institution of zakah collector, as that was applied in several islamic countries, then the zakah complience is now becomes the obedience against the formal institution of zakah collector. Therefore, the management of zakah institution, collecting efficiency and several other factors that were connected with the services given by zakah institution influenced the level of zakah complience. The study aimed at forming the zakah complience model of the formal institution of zakah collector. The model was formed based on the tax compliance model by adding several important factors that influenced the obedience of zakah payment. The availability of zakah complience model will benefit to facilitate research concerning the empirically test of zakah complience and evasion to the formal institution of zakah collector.

Sikap, Norma Subjektif dan Kawalan Gelagat Ditanggap Terhadap Niat Gelagat Kepatuhan Zakat Pendapatan Gaji

Sorotan kajian berkaitan zakat menyentuh soal bagaimana pelbagai faktor mempengaruhi kepatuhan zakat ke atas pendapatan penggajian. Namun begitu, faktor niat tidak dibicarakan dalam model gelagat kepatuhan zakat gaji sebelum ini, sedangkan niat adalah elemen yang terdekat sekali dalam menentukan gelagat seseorang. Bagaimanapun, faktor niat tidak boleh berlaku secara tersendiri kerana ada beberapa faktor lain pula yang berkait rapat dengan ketentuan niat. Justeru, kajian ini dijalankan bagi mengenal pasti faktor penentu niat gelagat kepatuhan zakat gaji dalam kalangan anggota masyarakat Islam di negeri Kedah. Teori Gelagat Terancang (Theory of Planned Behavior) yang dibangunkan oleh Ajzen (1985) digunakan sebagai landasan kepada kajian ini. Meskipun demikian, kajian ini menggunakan pendekatan yang berbeza daripada kebiasaannya, iaitu menghuraikan faktor sikap dan faktor norma subjektif dalam teori berkenaan kepada dimensi yang lebih khusus bagi mendapat kefahaman yang lebih jelas dan komprehensif. Hasil kajian menunjukkan bahawa sikap dan norma subjektif masing-masing dapat dileraikan kepada enam dan tiga komponen. Kesemua komponen tersebut apabila diuji dalam model regresi berganda menghasilkan dapatan yang lebih jelas. Tiga komponen sikap, tiga komponen norma subjektif, dan kawalan gelagat ditanggap berhubungan secara positif dan signifikan ke atas niat gelagat kepatuhan. Justeru, kajian ini menyokong bahawa sikap dan norma subjektif terhadap niat gelagat kepatuhan zakat gaji adalah terdiri daripada pelbagai dimensi dan lebih jelas dikaji dengan menggunakan setiap dimensi tersebut sebagai angkubah berasingan. Justeru, pihak berkuasa zakat disarankan membuat dan melaksanakan suatu pelan tindakan yang memfokus kepada bentuk sikap, kumpulan rujukan serta faktor kawalan gelagat ditanggap.

The Third International Zakah Conference

The first International Zakah Conference was held in Kuwait in 1984 (1404 H) at the invitation of Kuwait Zakah House. The second International Zakah Conference was held in Riyadh, Kingdom of Saudi Arabia, in 1986 (1406 H), at the invitation of the Zakah and Income Tax Department of the Kingdom. The Third International Zakah Conference, held in Kuala Lumpur, Malaysia, intended to achieve the following goals:
 i) To provide a comprehensive picture of different socio­economic and organizational dimensions of Zakah institutional systems currently operating in Muslim countries and communities.ii) To study the economic significance of various institutional frameworks.iii) To focus on the effects of the mandatory payment of Zakah to the state.iv) To compare different systems of Zakah collection and disbursement in use in different IDB member countries.v) To provide a forum for exchange of views and sharing of experiences of Zakah administration both for scholars and administrators.
 The principal theme of the Third International Zakah Conference was the institutional framework of Zakah. The conference was jointly organiz.ed by: i) Islamic Research and Training Institute (IRI'I) of IDB, Jeddah, ii) Islamic Affairs Division, Minister of Religious Affairs in the Office of the Prime Minister of Malaysia, iii) Zakah and Income Tax Department, Ministry of Finance and National Economy, Kingdom of Saudi Arabia, iv) Zakah House, Kuwait, and v) International Shari'ah Board for Zak.ah, Kuwait. The conference began with a welcome address on behalf of the President of the Islamic Development Bank, Jeddah. The address highlighted the importance of the conference in contributing toward the establishment of a more effective Zakah system in the Muslim Urrunah. Mr. Abdul Ghafar bin Baba, Deputy Prime Minister of Malaysia, in his opening speech, emphasized ...