Page 20 - Obligatory Zakat Made Easy

ZAKAT & TAX

i. Rebate on Individual Income Tax
Under Section 6A (3) of the Income Tax Act 1967,all
zakat payments (including qadha zakat – payment of
previous zakat) can be deducted from the individual
income tax paid during the basis year of the assessment
year with proof of receipt issued by a religious authority
established by law.

Example
Tax to be paid RM1,000.00
Income Zakat RM500.00
Saving Zakat RM300.00 - (RM800.00)
Tax after zakat RM200.00

Note 8: The IRB allows only deduction (rebates) from personal income
taxes when zakat payment is made to the zakat organisation.

Relation between Monthly Tax Deduction (MTD) and
Monthly Zakat Salary Deduction
Employers can remit some or all of the MTD to the Zakat
Collection Centre-MAIWP as determined by zakat payers.
Adjustments can be made by employers by taking into
account the amount of monthly zakat and reducing the
MTD for a particular month.

Example 1
MTD to be deducted RM100.00
Monthly zakat - (RM70.00)
MTD after zakat RM30.00

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