Determinants that influence muslims' perception toward tax deduction through zakat system / Nursafarah Ismail

Tax deduction is a reduction of income that is able to be taxed and is commonly a result of expenses, which means to produce additional income. On the other hand, zakat is a religious obligation for all Muslims who met the necessary criteria of wealth and its play an important role in poverty reduction, social and economic development of the country. Tax deduction does mean not paying taxes, however, it just means being smart about where to place money to acquire maximum benefits (through zakat system) by a Muslim. The aim of this study is to explore the determinants which are affecting Muslims' perception towards tax deduction through zakat system. There are four determinants that being tested in this study which are knowledge about zakat, knowledge about tax, legal consciousness and halal-haram. The data was collected from 150 distributed questionnaire amongst Muslims respondents. In analysing the data, researcher had done six analysis which is demographic analysis, descriptive analysis, factor analysis, correlation analysis, regression analysis and reliability analysis. All determinants are significant impact on Muslims' perceptions towards tax deduction through zakat system. Due to the limited literature available regarding to this topic, this research may help new researchers that wanted to do further investigation and study on this topic. Thus, this study helps Muslims to enjoy their zakat rebate in paying tax.