Implementation of Zakat as a Tax Incentive in Indonesia: A Comparative Analysis

Sofyan Halim, Anggia Dyarini M, Jundi Imam Suhada, Noviendri Jalil and Anasrul
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Sofyan Halim: Universitas Ibn Khaldun-Bogor – Indonesia Universitas Mercu Buana-Jakarta-Indonesia
Anggia Dyarini M: Universitas Ibn Khaldun-Bogor – Indonesia
Jundi Imam Suhada: Universitas Ibn Khaldun-Bogor – Indonesia
Noviendri Jalil: Universitas Ibn Khaldun-Bogor – Indonesia Universitas Yarsi-Jakarta-Indonesia
Anasrul: Universitas Ibn Khaldun-Bogor – Indonesia

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 15, 45-65

Abstract: Zakat, as an important instrument of fiscal incentives, plays an important role in facilitating wealth redistribution, reducing poverty, and increasing individual economic empowerment. This scientific article conducts a comparative analysis of the implementation of zakat within the framework of fiscal incentives in three countries: Indonesia, Malaysia, and Saudi Arabia. Indonesia recognizes zakat as a deductible expense, while Malaysia adopts a more progressive approach by categorizing zakat as a reduction in direct tax credits. In the context of Saudi Arabia, zakat serves as a fundamental mechanism for wealth redistribution, given that the state does not impose income tax. The findings of the analysis show that the efficacy of zakat as a fiscal incentive largely depends on the quality of management, regulatory framework, and its integration with fiscal policy. In Indonesia, a centralized framework through the National Amil Zakat Agency (BAZNAS) faces bureaucratic barriers, while Malaysia uses a decentralized approach through state authorities that facilitates increased flexibility. Saudi Arabia uses zakat as the main instrument for redistribution, supported by the religious values upheld by its population.

Date: 2025
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