Business Zakat Compliance Behaviour in Malaysia: Insights from SME Owners

Nurul Asmira Md Saad, Mohd Taufik Mohd Suffian, Masetah Ahmad Tarmizi, Liyana Ab Rahman, Siti Marlia Shamsudin and Dityawarman El Aiyubbi

Accounting and Finance Research, 2024, vol. 13, issue 4, 12

Abstract: This study investigates the factors influencing business zakat compliance behaviour among SME owners in Selangor, focusing on the components of the Theory of Planned Behaviour. The independent variables analysed include self-efficacy, peer influence, incentives, and knowledge level, while zakat compliance behaviour serves as the dependent variable. Utilizing a quantitative approach, data were collected through questionnaires distributed to Malay business owners registered with the Selangor Malay Chamber of Commerce (DPMMNS). Empirical analysis conducted via SPSS reveals that self-efficacy, incentives, and knowledge level have a significant positive impact on zakat compliance, whereas peer influence exerts a negative effect. Despite zakat being a well-established religious obligation, the collection of business zakat remains disproportionately low compared to income zakat, as highlighted in a 2022 report by Lembaga Zakat Selangor. The findings emphasize the need for policymakers and zakat institutions to address these factors by developing targeted strategies to improve zakat compliance among SMEs, thereby enhancing zakat contributions and supporting the broader Muslim community.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:jfr:afr111:v:13:y:2024:i:4:p:12

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