The Empirical Evidence on Taxpayers’ Intention to Claim Zakat Payment as a Tax Rebate

  • Izlawanie Muhammad Universiti Sains Islam Malaysia
  • Nur Shahira Mohamad Nor Universiti Sains Islam Malaysia
Keywords: Zakat, Tax Rebate, Theory of Planned Behaviour, Knowledge


Malaysia is one of the Islamic countries that integrate zakat in the tax system; Muslim individual taxpayers can minimize tax payment by claiming zakat paid as a tax rebate which is deducted from the amount of total income tax. Although zakat rebate has been applied in the tax system more than 20 years, there is lacking research on its effectiveness to increase zakat and tax payment compliance. This study is a step forward for more zakat rebate and the integration of zakat and tax research. The objective of this study is to examine Muslim individual taxpayers’ intention in claiming zakat as a tax rebate. This study adopts the variables in the Theory of Planned Behaviour (i.e. attitude, subjective norm, perceived behavioural control) and include knowledge as the variables. The quantitative research methodology was applied by using a questionnaire. This study found that all variables have significant influence on Muslim individual taxpayers’ intention in claiming zakat payment as a tax rebate. The results of this research not only expand the minimal literature on the integration of zakat in the tax system, but also provide empirical evidence to the tax and zakat authorities in understanding the behaviour of Muslim individual taxpayers.


Al-Mamun, A., & Haque, A. (2015). Perception of Muslim Consumers Towards Tax Deduction Through Zakat in Malaysia: An Empirical Investigation on Muslims In Malaysia. 1st International Conference on Shari'ah Oriented Public Policy in Islamic Economic System Proceedings (ICOSOPP 2015) (pp. 532-549). Acheh, Indonesia.

Abashah, A., Samah, I. H. A., Saraih, U. N., Rashid, I. M. A., Ramlan, N., & Radzi, W. N. S. W. M. (2018). The Impact of Attitude and Subjective Norms towards Zakat Compliance Behaviour in Malaysia. International Journal of Engineering & Technology, 7(3), 171-174.

Ajzen, I. (1991). The Theory of Planned Behaviour. Organizational Behaviour and Human Decision Processes, 50(2), 179-211.

Ajzen, I., & Fishbein, M. (1980). Understanding Attitudes and Predicting Social Behaviour. Englewood Cliffs, NJ: Prentice-Hall.

Amilahaq, F. & Ghoniyah, N. (2019). Compliance Behaviour Model of Paying Zakat on Income Through Zakat Management Organizations. Jurnal Ekonomi dan Keuangan Islam, 8(1), 114-141.

Bakar, N. B. A., & Rashid, H. M. A. (2010). Motivations of Paying Zakat on Income: Evidence from Malaysia. International Journal of Economics and Finance, 2(3), 76-84.

Bidin, Z., Idris, K. M., & Shamsuddin, F. M. (2009). Predicting Compliance Intention on Zakah on Employment Income in Malaysia: An Application of Reasoned Action Theory. Jurnal Pengurusan, 28, 85-102.

Damayanti, T. W., Sutrisno, T., Subekti, I., & Baridwan, Z. (2015). The Role of Taxpayer's Perception of the Government and Society to Improve Tax Compliance. Accounting and Finance Research, 4(1), 180-187.

De Bruijn, G.-J. (2010). Understanding College Students' Fruit Consumption. Integrating Habit Strength in The Theory of Planned Behaviour. Appetite, 54(1), 16-22.

Eagly, A. H., & Chaiken, S. (1993). The Psychology of Attitudes. Fort Worth: Harcourt Brace Jovanovich.

Farah, J. M. S., Shafiai, M. H. B. M., & Ismail, A. G. B. (2019). Compliance Behaviour of Zakat Donation: A Qualitative Approach. IOP Conference Series: Materials Science and Engineering, 572, 1-8.

Fishbein, M., & Ajzen, I. (1975). Belief, Attitude, Intention, and Behaviour: An Introduction to Theory and Research. Reading, MA: Addison-Wesley.

Grant, R. M. (1996). Prospering in Dynamically Competitive Environment: Organizational Capability as Knowledge Integration. Organization Science, 7(4), 375-387.

Hair, J. F. Jr., Black, W.C., Babin B. J., & Aderson R. E. (2010). Multivariate data analysis: A global perspective (7th ed.). Boston, MA: Pearson Educational.

Huda, N., Rini, N., Mardoni, Y. & Putra, P. (2012). The Analysis Of Attitudes, Subjective Norms, and Behavioral Control On Muzakki's Intention to Pay Zakah. International Journal of Business and Science Social, 3(22), 271-279.

Inland Revenue Board of Malaysia. (IRBM) (2015). Annual Report 2015. Kuala Lumpur, Malaysia.

Kamil, M. I. (2002). Kesan Persepsi Undang-Undang Dan Penguatkuasaan Zakat Terhadap Gelagat Kepatuhan Zakat Pendapatan Gaji. Journal of Ethics, Legal and Governance, 2(2006), 32-41.

Khaddafi, M., Heikal. M., & Falahuddin. (2014). The Intention to Pay Zakat Commercial: An Application of Revised Theory of Planned Behaviour. Journal of Economics and Behavioural Studies, 6(9), 727-734.

Kogut, B & Zander, U. (1992). Knowledge of The Firm, Combinative Capabilities and The Replication Of Technology. Organization Science, 3(3), 383-397.

Kurniawan, D. (2020). The Influence of Tax Education During Higher Education of Tax Knowledge and Its Effect on Personal Tax Compliance. Journal of Indonesian Economy and Business, 35(1), 57-72.

Kusumawati, A., Halim, A., Said, D. & Mediaty. (2014). Effect of Intention Mediation Towards Attitude, Subjective Norms and Perceived Behavioral Control on Taxpayers' Behavior. Journal of Research in Business and Management, 2(10), 26-32.

Linden, S. v. d. (2011). Charitable Intent: A Moral or Social Sonstruct? A Revised Theory of Planned Behaviour Model. Current Psychology, 30, 355-374.

Mikesell, J. (2003). Fiscal Administration: Analysis and applications (6th ed.). California, Wadsworth Publishers.

Mokhtar, S. S. S., Mahomed, A. S. B., & Hashim, H. (2018). The Factors Associated with Zakat Compliance Behaviour Among Employees. International Journal of Economics and Management, 12(S2), 687-696.

Muhammad, I. (2016). Factors that Influence Business Zakat Compliance among Small and Medium Entrepreneurs. The Journal of Muamalat and Islamic Finance Research, 13(1), 97-110.

Muhammad, I., Nor, N. S. M., & Rahman, A. A. (2017). Kedudukan Zakat Sebagai Rebat Cukai Pendapatan Dalam Akta Cukai Pendapatan 1967. In Z. M. Musa, A. A. Rahman, A. A. Wahab (Eds.), Memperkasa Kutipan dan Agihan Zakat di Malaysia (pp. 157-163). Universiti Sains Islam Malaysia.

Mukhlis, I., Utomo, S. H., & Soesetio, Y. (2015). The Role of Taxation Education on Taxation Knowledge and Its Affection Tax Fairness as well as Tax Compliance on Handicraft SMEs Sectors in Indonesia. International Journal of Financial Research, 6(4), 161-169.

Obaid, M. M., Ibrahim, I., & Udin, N. M. (2020). Zakat and Tax Compliance Behaviour in Yemen: A Conceptual Study. Journal of Advanced Research in Business and Management Studies, 19(1), 1-14.

Palil, R., Akir, R. & Ahmad, F. (2013). The Perception of Taxpayers on Tax Knowledge and Tax Education with Level of Tax Compliance: A Study the Influences of Religiosity. ASEAN Journal of Economic Management and Accounting, 1(1), 118-129.

Pappas, N. (2016). Marketing Strategies, Perceived Risks, and Consumer Trust in Online Buying Behaviour. Journal of Retailing and Consumer Services, 29, 92-103.

Pickens, J. (2009). Attitudes and Perceptions. In N. Borkowski (Ed.), Organizational Behavior in Health Care (pp. 43-76). Sudbury, MA: Jones and Bartlett Publishers.

Ramayah, T., Yusoff, Y. M., Jamaludin, N., & Ibrahim, A. (2009). Applying the Theory of Planned Behaviour (TPB) to predict Internet Tax Filling Intentions. International Journal of Management, 26(2), 272-284.

Rotter, J. B. (1966). Generalized Expectancies for Internal Versus External Control of Reinforcement. Psychological Monographs, 80, 1-28.

Saad, A. Y. Q., & Al-Foori, A. M. (2020). Zakat and Tax: A Comparative Study in Malaysia. International Journal of Innovation, Creativity and Change, 10(12), 140-151.

Saad, N. (2012). Tax Non-Compliance Behaviour: Taxpayers' View. Procedia Social and Behavioral Sciences, 65, 344-351.

Saad, R. A. J., Wahab, M. S. A., & Hussain, M. H. M. (2016). Perceived Service Quality of Zakat Institution Among Muslim Businessmen in Malaysia. Proceedings of the 3rd International Conference on Applied Science and Technology (ICAST'18) 2016 (pp. 020125-1 - 020125-4). US: AIP Publishing.

Salkind, N. J. (2014). Statistics for People Who (Think They) Hate Statistics (5th ed.). Thousand Oaks, CA: SAGE Publications, Inc.

Samad, M. N., Ariff, M., & Nassir, A. M. (2016). Impact of Zakat Payment Offset System on Income Tax Collection in Malaysia. International Journal of Applied Business and Economic Research, 14(13), 9579-9607.

Sapingi, R., Ahmad, N. & Mohamad, M. (2011, March). A Study on Zakah Of Employment Income: Factors that Influence Academics' Intention to Pay Zakah. Proceedings of the 2nd International Conference on Business and Economic Research (2nd ICBER 2011).

Shaharuddin, N. S., Palil, M. R., Ramli, R., & Maelah, R. (2012). Sole Proprietorship and Tax Compliance Intention in Self-Assessment: A Theory of Planned Behavior Approach. International Journal of Business, Economics and Law, 1, 34-42.

Shook, C., & Bratianu, C. (2010). Entrepreneurial Intent in a Transitional Economy: An application of the Theory of Planned Behaviour to Romanian students. International Entrepreneurship and Management Journal, 6(3), 231- 247.

Singh, V. (1998). Self-Assessment: Issues with regard to self-assessment. Journal of Malaysian Institute of Taxation, 87, 4-6.

Tabachnick, B. G., & Fidell, L. S. (2007). Using Multivariate Statistics (5th ed.). Boston MA: Pearson Education, Inc.

Tsalas, N. A., Mahri, A. J. W., & Rosida, R. (2019). Zakat Compliance Behaviour: Good Crorporate Governance with Muzakki's Trust Approach (Survey on Muzakki of the National Board of Zakat (Baznas) in Garut). KnE Social Sciences, 3(13), 796-808.

Zainol, B. (2008). Faktor-Faktor Penentu Niat Gelagat Kepatuhan Zakat Pendapatan Gaji (Unpublished PhD thesis). Universiti Utara Malaysia (UUM).

How to Cite
Izlawanie Muhammad, & Nur Shahira Mohamad Nor. (2021). The Empirical Evidence on Taxpayers’ Intention to Claim Zakat Payment as a Tax Rebate. International Journal of Business and Society, 22(2), 637-652.