Zakat Payment Research Articles

The determinants of institutionalization of Zakāt: the case of Morocco

PurposeMuslims have several religious obligations; the payment of a defined sum to the deprived part of the society is one of their financial obligations called Zakat. The institutionalization of this obligation has been the focal point of several research studies, however the Moroccan context has been studied by very few researchers. Therefore, this research aims to study the institutionalization of Zakat in the Moroccan context. Design/methodology/approachIn this paper, the authors try to drive focus to the determinants of the payment of Zakat to a specialized institution in Morocco (institutions whose main activity is the management of zakat funds), through 302 questionnaires that have been administrated on Moroccans and partial least square (PLS) approach.FindingsThe results show that the intention and payment behavior of Zakat by Moroccans depends on the quality of the zakat institution's quality of services, its location, the competence and availability of personnel, the use of technology, the shari'ah compliance of the institution’s activities and the trust by showing professionalism in the management of Zakat funds and disclose information.Research limitations/implicationsThe lack of relevant data covering the number of Zakat payers in Morocco, their potential contributions and the amounts paid each year, slows down the progress of this project as it hinders the ability of state officials and decision-makers to assess the potential zakat funds that are currently in circulation, and thus makes it hard for them to attribute financial support to such project. It also makes it hard for researchers to get direct access to Muzzakis.Practical implicationsThe existing literature shows immense interest in the implementation of institutions who can manage the Islamic social instruments especially zakat. However, the lack of relevant payer data of Zakat in Morocco and other jurisdictions who have not yet institutionalized zakat slows down the progress of this project and hinders any progress. Thus, the initiating point of such institutions in Morocco and in other countries who have not yet launched this project, requires knowing what determines the behaviour of Zakat payers and their choice of paying zakat to an institution. The results of our research help give insights on the determinants of zakat institutionalization from zakat payers point of view. These results are useful to the state policy makers.Social implicationsLike other neighboring countries, Morocco must introduce Zakat into its social system in order to better manage the funds that will enable the tackling of serious social problems such as poverty.Originality/valueIn contrast to the widespread and extensive literature available in analyzing the determinants of donations and volunteering from a conventional perspective, the parallel analysis of these same concerns in social Islamic systems is still in its infancy and so is the implementation of institutions related to zakat and other traditional Islamic social instruments such as waqf.

Determinan Perilaku Orang Membayar Pajak atau dan Zakat:


 This study aims to analyze the determinants that influence individual behavior in paying taxes and or zakat, as well as examine the service quality of management institutions and the satisfaction of tax or zakat recipients. These factors are reliability, tangibles, empathy, responsiveness and adherence to stakeholder satisfaction. This research was conducted in the city and district of Magelang with a sample of 40 people. This research method uses a mix method, namely a quantitative approach (regression test), and a qualitative approach (case study). The results of the study show that only reliability has a significant positive effect on the level of satisfaction of zakat payers, while the other hypotheses have no positive and significant effect on both the satisfaction of zakat paying stakeholders and taxes.
 Keywords: Taxes, Zakat, Zakat Management Organizations, Amil Zakat Institutions

FACTORS INFLUENCING THE INTENTION TO PAY ZAKAT ONLINE

This study investigates the factors influencing individuals' intention to pay zakat through an online platform. Data were collected using an online questionnaire distributed through convenience and snowball sampling methods, with a total of 222 participants comprising students and working individuals. Regression analyses were conducted to examine the proposed model, revealing that participants' attitudes and perceived behavioural control significantly influenced their intention to pay zakat online. However, subjective norms, knowledge, and trust had a negative impact on the intention to pay zakat using an online platform. This research contributes to the literature by focusing on the emerging field of online zakat payment. Findings suggest that zakat institutions can enhance the efficiency of digital payments by improving participants' attitudes and perceived behavioural control. Additionally, future research should consider incorporating variables related to IT literacy to understand user behaviour in online zakat payment better. The study's findings are relevant to various stakeholders, including governments, zakat institutions, zakat contributors, and academics. Governments can use the results to formulate policies encouraging online zakat payment. Zakat institutions can enhance their online payment platforms based on the identified factors. Zakat contributors can make informed decisions about online zakat payment using these insights. Academics can further develop theories and models of online zakat payment based on the study's findings. This study provides recommendations and acknowledges its limitations, offering valuable insights for future researchers interested in exploring this topic further.

Analysis on the determinant of millennials’ zakat payment through digital platform in Indonesia: a multinomial logistic approach

Purpose Digital technology has been widely applied in zakat collection. Millennials, who are now dominating the productive phase and at their peak carrier path, are the potential target for zakat collection as their number reached 31.3% of the Indonesian population. On the other hand, public and private zakat institutions have attempted to optimize the country’s zakat potential, reaching 233.6tn rupiahs, through development of a digital platform for zakat collection. However, the gap between the actual collection of zakat with its potential is still large. This study aims to analyse the factors affecting millennials in paying zakat through direct payment or through digital platform of private or public zakat institutions. Design/methodology/approach Multinomial logistic regression method, which signifies the contribution of this study, is used to analyse factors influencing millennials in their zakat payment. In addition, cross-tabulation is used to classify the characteristics of respondents. Respondents are selected conveniently through a digital questionnaire distributed in February–March 2021. Respondents are also selected purposively based on their experience in paying zakat through direct, private or public zakat institutions, which are consisted of 50 respondents per each category; thus, the total becomes 150 respondents. Findings Based on the results, three variables, namely, education, accessibility and age, are found to have a significant influence on zakat payment through online platforms provided by private zakat institutions. Meanwhile, variables that influence zakat payment through online platforms provided by public zakat institutions are education, accessibility and income. This study also finds that millennials have the highest probability to select online platforms provided by private zakat institutions as a channel of their zakat payment. However, the overall result shows that millennials tend to pay directly to the mustahik (zakat recipients) rather than via online platforms, presumably because of their limited zakat literacy. Research limitations/implications The purposive sampling technique used to determine the research samples limits the generalization of the study. Practical implications This paper establishes a new approach in analysing millennials preference in their zakat payment with digital inclusiveness. The use of a multinomial logistic approach, which has not been widely applied in such research, strengthens the analysis that is relevant to the need of both private and public zakat institutions to analyse determinants of millennials in paying their zakat through online platform. This study can be used as a reference to formulate a more effective marketing strategy for zakat collection. This paper also serves as an estimate of the preference with some selected typical characteristics of millennials by using a multinomial logistic approach. Social implications Formal payment through the zakat institution theoretically is more preferable than direct payment to mustahik (zakat recipients) in the zakat campaign. However, based on this research, despite digital marketing and platforms having been well-used by both private and public zakat institutions, the millennials still prefer direct zakat payment than through online platforms. The findings of this research suggest the importance of strengthening zakat literacy through a more effective digital marketing strategy of zakat institutions which target the millennials. Originality/value This study fills the gap in the literature on how millennials choose their zakat payment method, whether through digital platforms developed by private and public zakat institutions or directly to the targeted zakat recipients. The use of multinomial logistic regression approach adds the novelty of this research.

Analisis Zakat Hewan Ternak Dan Zakat Hewan Ternak Yang Diperdagangkan

This research is motivated by the phenomenon of the difference between zakat on livestock and zakat on traded livestock. In Indonesia, in the implementation of zakat, the zakat for livestock and the zakat for traded livestock are often considered the same, even though there are differences. In the zakat on livestock, it discusses provisions that are different from the zakat on traded livestock which is included in the zakat on trade. The purpose of this study is to analyze the zakat on livestock and the zakat on livestock traded. The research method used is a qualitative method with descriptive analysis and a normative approach. In the qualitative method, the researcher aims to obtain subjective results by using library research including written works, both journals and scientific articles. The results of this study concluded that zakat for livestock and livestock for traded livestock have differences in the provisions on the amount of zakat. Zakat on livestock is issued when the number of livestock has reached the nisab of zakat for livestock traded, so the zakat is the same as trade zakat and is calculated according to the count, not the appropriate number of zakat for livestock which makes the amount of these animals the benchmark for zakat payment his. The zakat nisab for traded livestock is worth 85 grams of gold, the zakat rate is 2.5 percent which is issued once a year.

Behavioural Response Patterns on the Government Incentives Influencing Compliance Behaviour of Business Zakat among SMEs

Government incentives and compliance behaviour of business zakat have a significant relationship as revealed by a few studies. However, the lack of study focused on respondents' response on the government incentives in influencing compliance behaviour of business zakat. Hence, this article examines the usage of Rasch Wright map in evaluating the behavioural response patterns on the government incentives and compliance behaviour of business zakat among SMEs. A total of 276 questionnaires were collected from SMEs entrepreneurs in Selangor. The Rasch Measurement Model was employed to analyze the data. Out of the 276 questionnaires collected, only 247 responses were consistent with the Rasch Measurement Model. Among the respondents, 107 individuals (43.3%) who complied with business zakat payment were influenced by government incentives, while 140 individuals (56.7%) who did not comply with business zakat payment were likely not influenced by government incentives. This study's results highlight the importance of the Rasch Measurement Model in elucidating the response patterns of participants, demonstrating its ability to explain how government incentives impact compliance behavior regarding business zakat among SMEs. This study has illustrated that this method of analysis is expedient in identifying the unusual and inappropriate response patterns and items based on fit statistics and misfit response series compared others. This shows that the Rasch Measurement analysis is an alternative tool to investigate the behavioural response patterns since analyze items and respondents of the study. This study suggests that future research regarding compliance and zakat employ the Rasch Measurement Model analysis as an alternative method to identify ability of respondents and the response behavior patterns among respondents.

The Spiritual's Post-Covid Asnaf Entrepreneurs Toward Zakat on Business

This study assesses the spiritual’s post-covid Asnaf entrepreneur’s toward zakat on business. It indicated the new insight of Asnaf entrepreneur’s spirituality after covid. After participating in the AEP, Asnaf became the zakat payer and directly will be give the positive effect to zakat collection. However, many small businesses, especially business from Asnaf entrepreneurs are financially fragile because of Covid- 19 challenges. To meet the challenges posed by the Covid-19, the Asnaf entrepreneurs had to react in agile and decisive ways by relating the spirituality toward business and able to maintain as the zakat payer soon. This involves conducting an after-action review in spiritual by lessons learned from the pandemic and enhance the business value. Therefore, in this paper, we explore the Spiritual’s Asnaf entrepreneurs toward zakat on business after facing the Covid-19. The analysis was performed to examine the reliability and validity of the measurement, and the structural equation modelling techniques (SEM). Spiritual among Asnaf entrepreneur’s toward zakat on business after Covid-19. Hence, the study provides an insight to zakat institution that the Covid-19 seek out the opportunities emerging in the recovery and stability return by move to digitalization business.
 Keywords: asnaf, entrepreneur, spiritual quotient, post covid

The Disclosure of Zakat by Islamic Banks (IBs) and Development Financial Institutions (DFIs) in Malaysia

As an Islamic finance institution, the transparent disclosure of zakat payment to stakeholders is one of the ways in which the organization demonstrates Islamic ethical value and accountability through business transaction. The effective, translucent, and timely reporting to the stakeholders (i.e., the public, regulators, investors, and others) is critical to the economic decision-making process as well as equitable distribution of resources to the society. Despite the various variations in zakat disclosure, less attention is given to the disclosure practices on zakat information by Islamic banks (IBs) and Development Financial Institutions (DFIs). Therefore, this study aims to examine firstly, the zakat disclosure requirements by regulations and then the zakat disclosure for all IBs and DFIs in Malaysia. This study adopted content analysis on the financial statement, annual report, annual integrated report, and annual sustainability report for the 2019 financial year. The whole population of 16 IBs and six DFIs were selected. This study found inconsistency in zakat disclosure of the different banks and other zakat-related practical issues in the descriptive analysis. The inconsistency varies from the method, rates, policy, and terminology used. Additionally, further embellishment on the non-financial information of zakat is also vital to demonstrate accountability to the general public.

Profitability and zakat payment: The role of firm size

Profitability and zakat payment: The role of firm size

BAYARAN ZAKAT KEPADA BUKAN AMIL: SATU KAJIAN DARI ASPEK MAQOSID SYARIAH DAN PERUNDANGAN

Zakat is an important word and a high-ranking word in Islamic teachings. Effective management of zakat collection and distribution can ensure the well-being of communities and even increase appreciation of Islam. Administration of zakat shall be subject to the authority and views of local authorities. In Malaysia, the States Islamic Religious Council (MAIN) is the powerful government in the administration of zakat, including community zakat collection. However, there are still a small number of institutions, companies and individuals who do not pay zakat through the Amil which appointed by state governments. This document therefore aims to explain the issue of zakat payments to appointed non-amil from a maqosid perspective and from a legislative perspective. The research methods used are based on data collection through analysis of relevant valid documents within the study. The results of the study show that paying zakat to accredited Amil is in line with Maqosid al-Shariah by following the guidelines set by the Shariah. Malaysia, as a whole, stipulates that zakat collection can only be done by appointed and authorized officials or agents. The authority given to Amir to collect zakat is local in nature and cannot cross the territory of another nation. Another insight is that under Shariah law, it is legal to distribute zakat privately without consulting an official legally appointed by the state government, but not to violate government regulations or the law of good conduct. It is a sin.

Systematic Literature Review of Electronic Zakat Payment

Indonesia has 235.53 million Muslim population, making up 86.88% of the country's total population. In this regard, an online zakat financial instrument is helpful to ensure equal income and alleviate poverty. This study aims to examine the effectiveness of electronic zakat payment and the factors optimizing the electronic zakat payment. This systematic literature review examines articles in a structured and systematic manner. The data sources of the study were secondary data obtained from several previous studies. The study found that online zakat payment has not been conclusive due to several factors, including an overly high target, lack of socialization on technology use, and the absence of sharia regulation. Electronic zakat distribution could be more effective if more people adopt this transaction method.

Thematic Review Paper on Business Zakat from 2015 to 2020

"This paper examines the last five years of the literature trend on business zakat worldwide. Although, there have been numerous studies on zakat in the past years, studies on business zakat are scarce. The literatures mostly focuses on zakat institutions or zakat management (Sawmar & Mohammed, 2021b), or zakat on an individual basis (Bin-Nashwan et al. 2020). These past studies did not look at the zakat collection in the business sector and no other studies as far as this study concern have used the thematic analysis on the business zakat literature. This paper is the first to use thematic analysis approach introduced by Clarke and Braun (2013) using the software Atlas.ti version 9 (Zairul, 2020) to study business zakat. The literature search encompasses three databases: Scopus, WOS, and ScienceDirect. Four themes are found in this study which are the impact of business zakat, factors influencing the payment of business zakat, issues arising from the business zakat concept, and solutions proposed by some papers regarding the issues of business zakat. Since this study only focus on the business zakat owned by companies, the findings might not be suitable for business ownership owned by individuals. Nevertheless, the findings on business zakat issues are still significant enough to zakat scholars, which could be considered for future studies."

Zakat accounting and public accountability: Evidence from Indonesia

To what degree does muzakki enforce accountability on zakat institutions to verify the proper transmission of their zakat payments, as posited by the theory? The primary objective of this research is to examine the impact of zakat accounting, internal control, leadership, and organizational culture on public accountability within zakat institutions. The survey was carried out among managers of zakat institutions operating in the Yogyakarta and Surakarta regions. A purposive sampling technique was employed to determine the sample for this study. The research utilized the statistical method of Structural Equation Modeling (SEM) based on variance to analyze the collected data. The findings of the study indicate that zakat accounting, internal control, and organizational culture have a positive influence on public accountability, while leadership does not significantly affect public accountability in zakat institutions. The robustness testing conducted in this study further validates the significance of zakat accounting, internal control, and organizational culture as the primary predictors of public accountability. Theoretically, this research contributes by proposing a new construct, namely zakat accounting. The practical implications derived from this research underscore the importance of implementing zakat accounting practices within zakat institutions as a means to bolster public accountability.

DESIGN OF ZAKAT PAYMENT APPLICATION AT BAITUZZAKAH FOUNDATION BASED ON ANDROID

The absence of zakat payment software has made zakat calculations at the Baituzzakah Foundation less than optimal. The main purpose of the research that the authors did was to design a mobile-based zakat payment application for the Baituzzakah Foundation, in this case using Android, where later this application can be useful for employees of the Baituzzakah Foundation to make it easier to pay professional zakat and zakat fitrah. The application that will be made can also be used when people from outside the foundation want to pay zakat to the Baituzzakah Foundation. The research method used to design an android-based zakat payment application is to use interviews, observations or observations and literature studies to obtain more detailed data. The data that has been obtained, will then be carried out by the application design process using flowcharts and pseudocode. The results of the design process will be followed by the coding stage using the Java programming language. The application that has been designed can provide a solution to Baituzzakah Foundation employees in calculating and paying their zakat, especially professional zakat and zakat fitrah.

Estimation of Zakat Proceeds for Jordanian Islamic Banks

The study aims to estimate the Zakat proceeds for Jordanian Islamic banks in 2019 and determine the elements to be included in the zakat base for Islamic banks, the methods for calculation, and the bases that must be taken into account when calculating the net working capital, in terms of the method and value by which the assets in the bank are valued. The study concluded with a set of results, most notably that the most appropriate method for determining the zakat base in Islamic banks is the net asset method. The study also found that the total proceeds of the zakat in Jordanian Islamic banks amounted to approximately 9.3 million JDs. The study recommended the necessity of Jordanian Islamic banks' commitment to disclose the method and amount of Zakat calculation, find an oversight body responsible for the payment of Zakat, and provide instructions to shareholders and investment account holders to calculate their Zakat. The study also suggests imposing a law requiring zakat to be applied to all banks in Jordan, including Islamic banks.
 

Analysis of The Influence of Religiusity, Legal Awareness, and Education on Tax Reduction Zakat with Profit Quality as Moderation

This study examines the influence of religiosity, legal awareness, and education on tax reduction zakat, with profit quality as a moderator. The data was collected from 70 respondents, and the statistical analysis was conducted using multiple regression analysis and moderated regression analysis. The results show that religiosity, legal awareness, and education have a significant positive effect on tax reduction zakat. Furthermore, the study finds that profit quality moderates the relationship between religiosity and tax reduction zakat. However, the study finds no significant moderation effect for legal awareness and education on the relationship between tax reduction zakat and profit quality. This study provides insights into the factors that influence tax reduction zakat and the role of profit quality in moderating the relationship between religiosity and tax reduction zakat. The findings may be useful for policymakers, tax authorities, and companies in developing strategies to improve tax compliance and zakat payment.

Zakat compliance behavior in formal zakat institutions: An integration model of religiosity, trust, credibility, and accountability

Indonesia boasts the largest Muslim population worldwide; however, the allocation of zakat funds remains relatively low. This is primarily due to the fact that numerous Muslim communities have yet to channel their zakat contributions through formal institutions. Many individuals are still unaware of their obligation to pay zakat. Previous research has predominantly employed theoretical frameworks in consumer behavior, with limited emphasis on formal zakat institutions. Consequently, there is a scarcity of socialization and counseling initiatives pertaining to formal zakat institutions within the community. Therefore, the objective of this study is to develop a model for understanding zakat compliance behavior within formal zakat institutions, with a focus on the variables of religiosity, trust, credibility, and accountability. This investigation seeks to provide a comprehensive and in-depth comprehension of the topic. The study employs a quantitative research design, utilizing the Structural Equating Modeling (SEM) method. A total of 346 respondents, categorized as Muslim citizens obligated to pay zakat, were included in the sample. The study findings indicate that accountability and credibility significantly influence trust, whereas trust and religiosity impact zakat compliance behavior. Notably, trust emerges as the most influential variable regarding compliance with zakat payments within formal zakat institutions. Conversely, the variable of religiosity exerts the weakest impact on compliance with zakat payments in formal institutions. These findings suggest that zakat institutions should prioritize the credibility variable to enhance the trust of zakat payers, thereby increasing compliance with zakat payments.

Religiosity in Paying Zakat and Tax Compliance in Medan City.

Zakat is a form of almsgiving which is collected by the Muslim Ummah. It is considered in Islam to be a religious obligation, and in terms of importance in Quranic standing, it is next in line after prayer. Zakat is thus a way for the people to channel their wealth to those who are less fortunate. Zakat is due for a Muslim when one's Zakatable wealth increases to a minimum threshold or nisab and also once a lunar year or hawl passes while one's Zakatable wealth withstands the lowest threshold. A Muslim only pays Zakat when they have been in possession of the nisab (minimum amount of wealth) for a period of at least a full lunar year. The payment of Zakat is strongly influenced by the value of individual religiosity as a basic form of attitude and knowledge to show obedience. The emergence of a policy to pay Zakat can help to reduce taxes for taxpayers in Indonesia, which is one of the efforts made to grow the productivity of Zakat. Zakat and taxes are very dependent on their management, but from a legal perspective, their implementation must be kept separate. This research examines how a person's religiosity affects compliance in paying Zakat, which can increase tax revenues in Medan. Qualitative research methods with a desk research approach were used. The study results show that the value of religiosity dramatically influences the people of Medan to pay Zakat. Religiosity is variously interpreted as worship that encourages paying Zakat, thus giving rise to different characteristics in attitude, willingness, and compliance to pay taxes. In implementing the policy of paying Zakat to cut taxes, many people still need to know more about it. The role of Zakat institutions still needs to be improved in providing socialization and creating greater awareness thereof. This raises an attitude of trust in paying Zakat to institutions close to their environment compared to institutions recognized by the government. This condition arises because of the high value of religiosity, which is more concerned with distributing Zakat than administrative issues so that it can be recognized as a tax reduction. Meanwhile, the moral community tends to emphasize the community's religiosity value as a basis for compliance in paying Zakat.

PERBANDINGAN PERLAKUAN PAJAK DAN ZAKAT PADA PRODUK KEUANGAN ISLAMI MUDHARABAH DAN MURABAHAH

This paper aims to describe the past and present tax and zakat obligations imposed on each Muslim as two different obligations through a literature review. Taxes are levied by the government on every citizen including Muslims with the aim of assisting the government in financing the state. While zakat is paid by Muslims based on religious obligations aimed at increasing the devotion of the Ummah, reducing poverty and increasing solidarity and building economic sustainability. Using a descriptive method, this study found that in contemporary Islamic economics, zakat is used as a tool to improve the economy with an interest-free loan system (qardul hasan). Mudharabah and Murabahah are both Islamic financial products designed by considering aspects of sharia compliance, including the fulfillment of zakat obligations. The basic principle of zakat in Islam is the obligation to give a portion of wealth to those who deserve it. Meanwhile, the imposition of taxes on Islamic financial products has the same purpose as the imposition of taxes on conventional financial products, namely to finance government spending in providing public services to the public. The payment of zakat through official institutions can be submitted as a tax deduction, so that the tax functions as the main source of state revenue and is used entirely for the benefit of the people in line with the purpose of zakat payment in Islam.

Zakat on Business Entities and its Tax Treatment

The focus of this paper is on zakat on business entities and its tax treatment, whether the zakat clause as a deduction from taxable income regulated in Law Number 23 of 2011 concerning zakat management and Law Number 36 of 2008 concerning the Fourth Amendment to Law Number 7 of 1983 concerning Income Tax affects taxable income and income tax that must be paid by the company. The research approach is a case study where the sampling business entities are companies engaged in property services whose income tax calculation is final and companies in the trading sector whose tax calculation uses the tariff of article 17 of the Income Tax Law. The results of the study provide legal certainty for business entities that pay zakat and become input for government policy in the management of zakat and taxation. If zakat payment is recognized as a deduction, it can encourage more active zakat payment and increase the contribution of zakat to state revenue. However, if zakat payment is not recognized, business entities may face higher tax burden which has implications on their financial planning. This research contributes to the understanding of zakat and taxation in Indonesia and has implications for the legal framework and tax regulations.