Zakat and tax

We will analyze the VAT legislation and guidance from the authorities to the extent available as our work progresses. Dr Yusuf Al-Qaradawi in his monumental work Fiqh-uz-Zakat Law of Zakat has given the following arguements in favour of imposition of Taxes by Islamic states, if needed: At the same token, we cannot use zakat receipt for tax purposes.

There is difference in the objective and intent between Zakat and Tax. We will update our findings and to follow-up on outstanding issues to comply with legislative developments, guidance, or other information made available post completion of Implication Review.

Plz see my answer as well. An important proof in this regard is the decision of Hazrat Abu Bakr R. Zakath is given out of the surplus wealth or earnings. Q3 The taxes one pays here in the UK includes income tax, council tax, road tax and so forth.

Difference Between Zakat and Tax

By contrast, tax in relation to the current financial year is neither known precisely in terms of its overall amount, nor is it due to be paid. Unlike Zakat, the government forces tax on the citizens. Zakat was not enforced at the time of Prophet Muhammad. Allah is All hearing, All-knowing" The collectors are required not to take Zakat and tax than what is due, and those who are paying the zakat are asked not to evade payment.

There was no option of not taking it. Represented several share-holders companies at the board of directors and audit committees, and supervised external and internal audits.

There are also differences in the sources between Zakat and Tax. Legality of Raising Taxes in Addition to Zakat Whatever were the differences in the early writings of Fuquaha Jurists of Islam in early period of Islam, there is no serious disagreement among the Fuquaha or Islamic Economists of the current time, as regards of the legality of imposition of taxes in addition to Zakat.

For a long time, governments imposed taxes to raise revenue only to cover the cost of administration and defence, and in the case of despotic monarchs for personal expenditure of the ruler. So tax is out and we are not paying any zakat on that money anyways. There is difference between Zakat and tax in respect of the utilisation of respective fund whereas tax can be spent for any purpose.

Islam does not put extra burden on people. Tax is collected from all citizens of a country. The Quran does not provide specific guidelines on which types of wealth are taxable under the zakat, nor does it specify percentages to be given.

Our policy is to recruit the best qualified employees. This means it was made compulsory at the time of first two caliphs. And those who keep their treaty when they make one, and the patient in tribulation and adversity and time of stress.

The last of which was the Directorate of Senior Taxpayers. There is no need to pay Zakat and Tax separate.


The object of Zakat is spiritual as well as economic. Zakat is calculated at 2. It is a fixed liability now that must be paid. He was responsible for the assessment and audit of income and sales tax on various types of companies and individuals at all stages of initial and self-assessment.

The reason for the above position is that the tax liability for the previous year is known and cannot change. But the customary practice is that the amount of zakat paid on capital assets e. Similarities and Dissimilarities Between Zakat and Tax There are some important similarities and dis-similarities between Zakat and Tax.

That is people may choose not to pay.Statuary Zakat and tax declaration services Our dedicated Zakat and tax team will assist you to comply with GAZT’s Zakat and tax guidelines and navigate your business to minimize its Zakat and tax liability by taking advantage of our comprehensive understanding to GAZT’s Zakat and Tax guidelines.

Q2) I have a company and therefore TAX is not deducted till the end of the financial year. I put 20% corporation tax to one side myself, does Zakat need to be calculated on this or is this classed as a debt?

Learn about working at GAZT- General Authority of Zakat & Tax. Join LinkedIn today for free. See who you know at GAZT- General Authority of Zakat & Tax, leverage your professional network, and get. Technical Comparison between Business Zakat and Tax on Business Income in Malaysia 15 However, tax as defined in the Oxford Dictionary is a.

May 27,  · Zakat vs Tax Zakat is related to religious and tax is related to government. In no way Zakat and tax can go together; they are different in many respects. While zakat has a religious sanctity, tax is not like that. Tax is collected from all citizens of a country. The government collects tax for the overall development4/5(5).

Tax is a social obligation without having special sense of gratitude to Allah or to obtain nearness to Allah while Zakat is essentially a matter between Allah and His servants, but tax has been primarily a matter between citizens and the state authorities.

Zakat and tax
Rated 3/5 based on 55 review