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

Dodik Siswantoro, Mohammad Soleh Nurzaman, Sri Nurhayati, Agus Munandar, Abdul Ghafar Ismail and Nafsiah Mohamad

Academic Journal of Interdisciplinary Studies, 2022, vol. 11

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.

Date: 2022
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.richtmann.org/journal/index.php/ajis/article/view/12871 (text/html)
https://www.richtmann.org/journal/index.php/ajis/article/view/12871/12467 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bjz:ajisjr:2200

DOI: 10.36941/ajis-2022-0039

Access Statistics for this article

More articles in Academic Journal of Interdisciplinary Studies from Richtmann Publishing Ltd
Bibliographic data for series maintained by Richtmann Publishing Ltd ().