Understanding business zakat compliance: insights from SME Owners in Selangor

Md Saad, Nurul Asmira and Mohd Suffian, Mohd Taufik and Abd Rashid, Mohd Zulfikri and Puteh, Mohd Soffi and Alias, Ahmad Zoolhelmi (2024) Understanding business zakat compliance: insights from SME Owners in Selangor. In: International Conference On Accounting & Business (ICAB) 2024, 18-19 Sept 2024, Universiti Teknologi MARA, Perak Branch Tapah Campus.

Abstract

This paper aims to determine factors affecting on business zakat compliance behaviour among SMEs owner in Selangor. In addition, this study also analyses these factors based on components of the Theory Planned and Behavior, which consists of self-efficacy, peer influence, incentives and level of knowledge that represent as independent variables; meanwhile, compliance on zakat business behaviour is taken as dependent variable. This study is quantitative research by distributing questionnaires to Malay businesses registered from Malaysian Selangor Malay Chamber of Commerce (DPMMNS). Empirical findings from the analyses conducted by using SPSS indicate that self-efficacy, incentives and level of knowledge positively influence zakat business compliance behavior among SMEs. Meanwhile, peer influence indicates negative influence on zakat business compliance behavior among SMEs. Although business zakat is not a new knowledge for every Muslim needs to study, the collection of business zakat is still low compared to zakat on income based on a report published by Lembaga Zakat Selangor in 2022. The policymakers, zakat institutions need to take this matter seriously by paying more attention to these factors which become a reference in future to educate and develop new strategies to make SMEs pay business zakat, hence, increasing business zakat collections which can help other Muslims in need.

Metadata

Item Type: Conference or Workshop Item (Paper)
Creators:
Creators
Email / ID Num.
Md Saad, Nurul Asmira
UNSPECIFIED
Mohd Suffian, Mohd Taufik
taufik815@uitm.edu.my
Abd Rashid, Mohd Zulfikri
UNSPECIFIED
Puteh, Mohd Soffi
sopiuitm@pahang.uitm.edu.my
Alias, Ahmad Zoolhelmi
ahmad006@uitm.edu.my
Subjects: H Social Sciences > HG Finance > Banking
H Social Sciences > HJ Public Finance > Revenue. Taxation. Internal revenue > Income tax
Divisions: Universiti Teknologi MARA, Perak > Tapah Campus > Faculty of Accountancy
Journal or Publication Title: e-Proceedings International Conference On Accounting & Business (ICAB) 2024
Event Title: International Conference On Accounting & Business (ICAB) 2024
Event Dates: 18-19 Sept 2024
Page Range: pp. 245-253
Keywords: Business zakat, Self-efficacy, Peer influence, Incentives, Level of knowledge
Date: 2024
URI: https://ir.uitm.edu.my/id/eprint/134140
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