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Question: If I have made a zakat payment to the Zakat Collection Center, is it included in the tax calculation?
Personal Income Tax (Including Business Owners)
Answer: Yes because a resident of Malaysia who has a taxable income is entitled to claim a tax rebate on the payment of zakat, tithe or otherwise required by Islam to the religious authority established under any written law. The amount of rebate allowed to an individual is limited to the amount of income tax imposed for the year of assessment. ● "Religious authorities established under any written law" include the Zakat Collection Center and the State Islamic Religious Council. ● "Written Law" means the legal enactment or legal instrument in force in Malaysia.