Zakat as Tax Deductions Grow Tighter

Zakat as Tax Deductions Grow Tighter
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JAKARTA - The discourse of zakat as a tax deduction instrument is getting louder. At National Coordination Meeting (Rakornas) National Amil Zakat Agency (Baznas) on 4-6 October 2017, this discourse will be discussed again.

"If it can be realized, tax deductions are expected to be an incentive for muzaki," said Zainulbahar Noor, Vice Chairman of Baznas in Jakarta on Friday (9/29).

Zakat payment discourse can reduce taxes, said Noor can increase public awareness to pay taxes.
He explained that the zakat payment scheme becomes a tax deductible instrument if, for example, a person's or company's income Rp1,000,000, and he pays 2.5 percent zakat Rp25 thousand, the income taxed is the amount of income minus the amount of zakah paid, which is Rp975.000 .

This discourse, he continues, still need to be discussed further to formulate a scheme that fits and can be accepted by various parties.

"Do not later the taxpayer prefer pay zakat 2.5 percent rather than pay taxes. Maybe, first we try to socialize first for personal," said Noor.
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