Factors Determining Zakat Rebate Preferences in Malaysia: Zakat as Tax Deduction

Authors

  • Dodik Siswantoro Faculty of Economics and Business Universitas Indonesia, Gedung Dekanat FEB UI Kampus Widjojo Nitisastro, Jl. Prof. DR. Sumitro Djojohadikusumo, Kukusan, Kecamatan Beji, Kota Depok, Jawa Barat 16424, Indonesia
  • Mohammad Soleh Nurzaman Faculty of Economics and Business Universitas Indonesia, Gedung Dekanat FEB UI Kampus Widjojo Nitisastro, Jl. Prof. DR. Sumitro Djojohadikusumo, Kukusan, Kecamatan Beji, Kota Depok, Jawa Barat 16424, Indonesia
  • Sri Nurhayati Faculty of Economics and Business Universitas Indonesia, Gedung Dekanat FEB UI Kampus Widjojo Nitisastro, Jl. Prof. DR. Sumitro Djojohadikusumo, Kukusan, Kecamatan Beji, Kota Depok, Jawa Barat 16424, Indonesia
  • Agus Munandar Universitas Esa Unggul, Jl. Arjuna Utara No.9, Kb. Jeruk, Kec. Kb. Jeruk, Kota Jakarta Barat, Daerah Khusus Ibukota Jakarta 11510, Indonesia
  • Abdul Ghafar Ismail Universiti Sains Islam Malaysia, Bandar Baru Nilai, 71800 Nilai, Negeri Sembilan, Malaysia
  • Nafsiah Mohamad Universiti Teknologi Mara, Jalan Ilmu 1/1, 40450 Shah Alam, Selangor, Malaysia

DOI:

https://doi.org/10.36941/ajis-2022-0039

Keywords:

zakat, tax, rebate, Malaysia, income

Abstract

This research aims to analyze factors that could affect preferences for zakat rebates (i.e., zakat as a tax deduction) in Malaysia. In 1967, Malaysia’s Income Tax Act legalized zakat and made it tax-deductible. An applied quantitative method (SmartPLS) was used to construct a formative model on Muslims in Malaysia. Participants in the research were economics faculty members from universities in Malaysia. The results show that satisfaction affects preferences for zakat rebates and may prove that Muslims pay zakat because they are satisfied with their zakat institution. Other findings show that Malaysian Muslims only focus on income zakat and not on maal (wealth) zakat, which may be caused by the monthly zakat rebate system. This may be the first research paper that discusses zakat rebate preferences in Malaysia using a theory based on service quality and behavioral consequences.

 

Received: 6 December 2021 / Accepted: 29 January 2022 / Published: 5 March 2022

Downloads

Download data is not yet available.

Downloads

Published

2022-03-05

How to Cite

Siswantoro, D. ., Nurzaman, M. S. ., Nurhayati, S. ., Munandar, A. ., Ismail, A. G. ., & Mohamad, N. . (2022). Factors Determining Zakat Rebate Preferences in Malaysia: Zakat as Tax Deduction. Academic Journal of Interdisciplinary Studies, 11(2), 115. https://doi.org/10.36941/ajis-2022-0039

Issue

Section

Research Articles