Company zakat assessment methods in selected jurisdictions

Download This Article

Dodik Siswantoro ORCID logo, Mohamad Soleh Nurzaman ORCID logo, Sri Nurhayati, Agus Munandar, Abdul Ghafar Ismail ORCID logo, Syed Musa Bin Syed Jaafar Alhabshi ORCID logo

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.


The paper aims to analyze the consistency and suitable method of company zakat calculation by evaluating the financial reports of companies in the countries: Saudi Arabia, Kuwait, and Malaysia. A previous study shows that the misconception on company zakat implicates a recognition and measurement (Adnan & Bakar, 2009). Then, this study describes that the consistency analysis is reviewed by comparing the preferred method in each country and the method that is currently applied by the company, while the suitable method is assessed by exploring all the possible zakat calculation methods that can be employed by the companies. This study discloses company zakat in the financial statements and its available common calculation methods. Descriptive data from financial companies disclosing company zakat in Saudi Arabia, Kuwait, and Malaysia are used. Accordingly, the proposed method would be used in the simulation calculation. Zakat can be based on final, calculated from its net income and non-final basis, calculated from working capital. The result shows that some countries have different yet similar calculation methods. The zakat companies should have a standardized method for calculation that can be reviewed by an external party. The study is relevant for the countries adopting company zakat in practice.

Keywords: Company Zakat, Method, Income, Working Capital

Authors’ individual contribution: Conceptualization — D.S., A.G.I., A.M., M.S.N., S.N., and S.M.B.S.J.A.; Methodology — D.S. and A.M.; Investigation — D.S. and A.M.; Writing — Original Draft — D.S., M.S.N., S.N., and A.M.; Writing — Review & Editing — D.S., A.G.I., A.M., M.S.N., and S.M.; Supervision — D.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

Acknowledgements: The researchers would like to thank the Ministry of Research, Technology, and Higher Education of the Republic of Indonesia which funded this research.

JEL Classification: L31, L38, H29, K29

Received: 18.11.2021
Accepted: 17.05.2022
Published online: 19.05.2022

How to cite this paper: Siswantoro, D., Nurzaman, M. S., Nurhayati, S., Munandar, A., Ismail, A. G., & Alhabshi, S. M. B. S. J. (2022). Company zakat assessment methods in selected jurisdictions [Special issue]. Journal of Governance & Regulation, 11(2), 286–292.