ZAKAT

ADMINISTRATION
OVERVIEW IN
MALAYSIA
(Federal Territory’s
Experience)

AHMAD HUSNI ABD RAHMAN

Manager
Shariah & International Relation Unit
Zakat Collection Centre , Kuala Lumpur
Malaysia

The Federal Constitution of Malaysia
[Federal Constitution: Ninth Schedule, Second List (List II):
State List]
All religious matters is under the state governance (14 states)
Under specific Act or Enactment by state religious
authorities namely Majlis Agama Islam Negeri-negeri (State
Religious Council) as for example:
o Akta 559: Kesalahan Jenayah Syariah (Wilayah-Wilayah
Persekutuan) 1997
o Enakmen Pentadbiran Agama Islam (Johore) 2003
o Enakmen Pentadbiran Agama Islam (Selangor) 2003
o Enakmen Pentadbiran Hal Ehwal Agama Islam (Terengganu)
2003
o Enakmen Pentadbiran Agama Islam (Penang) 2004
o Enakmen Majlis Ugama Islam (Sabah 2004
o Enakmen Zakat dan Fitrah (Sabah) 1993
Except with respect to the Federal Territories of Kuala
Lumpur and Labuan, Islamic law and personal and
family law of persons professing the religion of
Islam, including the Islamic law relating to
succession, testate and intestate, betrothal, marriage,
divorce, dower, maintenance, adoption, legitimacy
guardianship, gifts, partitions and non- charitable
trusts; Wakafs and the definition and regulation of
charitable and religious endowments, institutions,
trusts, charities and charitable institutions operating
wholly within the State; Malay customs. Zakat, Fitrah
and Baitulmal or similar Islamic religious revenue,
mosques or any Islamic public places of worship,
creation and punishment of offences by persons
professing the religion of Islam against precepts of
that religion, except in regard to matters included in
the Federal List; the constitution, organisation and
procedure of Syariah courts, which shall have
jurisdiction only over person professing the religion
of Islam and in respect only of any of the matters
included in this paragraph, but shall not have
jurisdiction in respect of offences except in so fat as
conferred by federal law*, the control of propagating
doctrines and beliefs among persons professing the
religion of Islam; the determination of matters of
Islamic law and doctrine Malay custom.
All Islamic affairs and Malay customs are under the authority of
States Administration which is also under the Sultan of each
state cum the State Head of Religion whilst the Federal
Government is responsible as the Islamic Affairs coordinator.

Department of Zakah, State Administration

Waqf (Endowment) & Hajj (Sultan)

State Religious Authorities

Zakah Administration Collection

Distribution

General Administration
 FEDERAL TERRITORY ZAKAT ADMINISTRATION CHART

KING
PRIME MINISTER’S
DEPARTMENT

FEDERAL TERRITORY
Section 4 (i) : ISLAMIC RELIGIOUS
COUNCIL DEPARTMENT OF WAQAF,
There shall be a body to be known as the
“Majlis Agama Islam Wilayah Persekutuan” ZAKAT & HAJJ
to advice the Yang di Pertuan Agong (King)
in matters relating to the religion of Islam.

BAITULMAL DISTRIBUTION FEDERAL TERRITORY

COMMITTEE COMMITTEE DEPARTMENT OF ISLAMIC

An Act to provide for the

Monitored and Audited by: HARTASUCI SDN. BHD. Federal Territories, a law
BAITULMAL DIVISION
1) Internal concerning the
2) External 3rd Party enforcement &
3) Religious Council administration of Islamic
4) National Audit ZAKAT COLLECTION
Law, the constitution &
BAITULMAL’S GROUP organization of the Syariah
5) Shariah Governance CENTRE OF ACCOUNT Courts, and related matters.
(monitoring by Fatwa
Council)

8 ASNAFS
 COLLECTION DISTRIBUTION

Mobile Zakat Counter

/ Door 2 Door /
Digital Zakat Counter
Counters / Services
/ Zakat Agents
B2C

B2B Application

B2C Report
E-FeM
(Employer Salary Monthly
Agents & Firms Deduction Distribution
via E-System) Specified
Online
Schemes
E-Wallet /
Blockchain B2B
RESEARCH & DEVELOPMENT

Shariah
&
International Relation
 ZAKAT INTEGRATED SYSTEM (SiZA)

CLIENT BASED WEB BASED

 The
Poor

The
Needy

Admin

Newly
Reverted

In
Debt

Way
Farer
Slavery

Allah’s
Cause
OVERALL OPERATION CHARACTERISTICS
Organization's Criteria
Working Culture
Economic Growth & Political Stability
Middle Class Muslims Zakat Awareness
Government Policy
Effective Da’awah & Marketing Strategies
Various Payment Channels
Media Networking
 ZAKAT AND PERSONAL TAX
TREATMENT IN MALAYSIA
SECTION 6A (3) INCOME TAX ACT (ITA) 1967
A rebate shall be granted for a year of assessment for any zakat, fitrah
or any other Islamic religious dues payment of which is obligatory and
which are paid in the basis year for that year of assessment to, and
evidenced by a receipt issued by, an appropriate religious authority
established under any written law.

For instance, if an individual's tax payable is RM3,000 and he paid zakat

for that YA for RM3,000 then his net tax payable would be RM0.

ZAKAT AND CORPORATE TAX

TREATMENT IN MALAYSIA

2.5% on Aggregate Income

 ZAKAT PERFORMANCE
ZAKAT COLLECTION
BASED ON TYPE
TYPE
OF
ZAKAT

Salary
Business
Savings
Wealth
Compensation
Others
(Fitra)
Total
 2021 COLLECTION

RM 821,740,348.85
2,672,628,310.60 TRY
 ZAKAT DISTRIBUTION BY FEDERAL
TERRITORY RELIGIOUS COUNCIL YEAR 2020

DISTRIBUTION DISTRIBUTION
BY SCHEME BY WAKALAH

EDUCATION COMMUNITY
INFRASTRUCTURE
& WELFARE

TOTAL
DISTRBUTION
OF 2020
AMIL’S
PORTION
RM 707,968,418 OPEX