Understanding of Financial Managers About Business Zakat: a Study of Corporate Companies in Kedah Darulaman
Year: 2024
Type: article
Abstract: This research looks at the understanding of financial managers in corporate companies in the State of Kedah towards the obligations and calculation of business zakat. Most corporate companies in Kedah pay business zakat but not according to the actual assessment. This is related to the level of understanding of the company's financial manager about business zakat. A qualitative approach is used where respondents are selected from among the company's financial managers using a purposeful sampling technique. A semi-structured interview technique is used. The selected companies are two from Government Link Companies (GLCs), one Public Listed Company (PLC) and one subsidiary to GLCs. From the point of view of understanding, it is divided into six (6) themes, namely the definition of business zakat, period (hawl), nisab, zakat calculation method, adjustment and business status. The findings found that the majority of respondents did not understand the definition of business zakat. Most respondents do not know the nisab and business zakat rate. Meanwhile, only 50% of respondents know about the calculation method of business zakat. Some respondents were confused about the adjustment items. Meanwhile, 100% of respondents agreed that only Muslim shares or shares were taken into account in the calculation of business zakat. Overall, the findings showed that the respondents did not understand the business zakat and its calculation method. Zakat authorities can provide more detailed and specific guidance for corporate companies, including assessment methods suitable for different types of businesses, so that the process of valuation and payment of zakat becomes easier and according to the actual assessment.
Institution: Universiti Utara Malaysia
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4406296037