Business Zakat Accounting: Fiqhi Basis

The available zakat accounting standards as well as laws governing business zakat reflect a sort of consensus that adjusted net working capital of a business may be regarded as the base for computation of zakat liability. The second accepted alternative is the adjusted growth capital which essentially arrives at the same outcome, given the accounting…

Business Zakat Accounting & Taxation in Malaysia

Unlike Saudi Arabia, Malaysia doesn’t have an integrated zakat and taxation system. Zakat management like all religious matters in Malaysia is the reponsibility of each of its thirteen states  and a prerogative of its ruler (sultan). The Shariah-legal and regulatory framework, infrastructure for collection and distribution of zakat is provided the respective State Islamic Religious…

Business Zakat Accounting & Taxation in Saudi Arabia

Saudi Arabia is one of the few countries in the world to have fully integrated zakat with income tax. It established the Department of Zakat and Income Tax (DZIT) under the Ministry of Finance by the Ministerial Resolution no. 394, dated 7/8/1370 H. (14/06/1951). While its headquarter in Riyadh deals with large zakat and tax payers, the other…