paying zakat in malaysia
Money Management

33 Thoughts on Paying Zakat in Malaysia

 paying zakat in malaysia

Disclaimer: Not a zakat expert. If any info is wrong, please help me learn by commenting (EDIT: all corrections added as EDIT in this article)

As a brainwashed Muslim (I say this with a bit of both resignation and pride – it’s a very odd feeling), I’m generally OK with paying zakat in Malaysia.

I accept it as a responsibility, plus I believe it’s a way for me to ‘cleanse’ my earnings. I was told early on that as much as I try to generate halal income, some of my money will not be halal due to imperfections of the system.

Here are my thoughts on paying zakat in Malaysia. I littered this with plenty of my own questions as well, but I hope it’s useful for you guys.

1. (In high school, during Pendidikan Islam) Teacher say zakat money goes to

  • (1) the poor,
  • (2) the needy,
  • (3) new converts,
  • (4) the debt-ridden,
  • (5) those in bondage (it used to refer to slaves, but now interpreted figuratively),
  • (6) Islamic causes (build mosques, etc),
  • (7) the wayfarers (people traveling and without resources, like refugees fleeing a country), and
  • (8) zakat administrators (people who distribute)

Must memorise all this, might come out in exam.

2. (When I first started work) I should start paying zakat. How do I do that? Who do I pay to? Which types of zakat should I pay? There are so many types! 11 types, in fact!

3. Okay, so as an unmarried woman I don’t have to pay Zakat Fitrah. The responsibility lies to my father, then if married this becomes husband’s responsibility. Got it. *mixed feminist feelings*

4. I don’t think Zakat Harta, Zakat Pertanian and Zakat Penternakan applies to me either.

5. What in the name of God is Zakat Ma’adin, Kunuz and Rikaz???

6. Zakat Emas and Perak, for gold and silver doesn’t apply to me as well. Need to have more than a certain amount before applicable. Oh, gold jewellery ownership also subject to this zakat, how interesting.

7. I didn’t know there is zakat for stocks/shares too. I don’t own them, so no need to bother with Zakat Saham.

8. Zakat KWSP (EPF) is only applicable when I draw the money out, yes? So no need for this too.

9. Zakat Perniagaan is a bit confusing. If I pay Zakat Pendapatan, have to pay this too?

10. Zakat Wang Simpanan is also a bit confusing. So far, what I understood is I must have a minimum amount as savings before applicable for this. According to this article, ASB counts.

Other savings applicable for this zakat: cash savings in bank and personal savings. It must exceed a certain amount (changes every year).

My question is, what if those savings accounts are also a part of income? Again, if I pay Zakat Pendapatan, must pay this too?

11. Serious question: What would be the calculation for zakat on bitcoin? It’s savings but also income+investment. No fatwa on it yet, too.

I have no idea if this is the right way, but because it is similar to gold, I used the same Zakat Emas calculation for bitcoin.

12. That leaves only one type of zakat left: Zakat Pendapatan. Tithe on my income. I believe this is the only zakat I have to pay now, but the more enlightened among you can advice.

13. Okay then. Two major questions – (1) to whom and (2) what is the calculation for Zakat Pendapatan.

14. Question on to whom: apparently it’s okay to just give it directly to people in one of those eight categories. It is permissible.

However, religious authorities really, really don’t encourage own distribution, because apparently it’s better to give to religious bodies as they can distribute it better. They even say it’s a ‘sin’ if we distribute zakat on our own (the quotemark is theirs, not my own addition). Sources: x | x

15. I have a problem with this. Religious authorities in Malaysia, in my opinion, can be a bit… how do I say this delicately… off track… in their priorities. I want to religious authorities that promote compassion instead of punishment.

Plus the whole ‘if you don’t agree with us you’re a bad Muslim’ thing is just religious guilt-tripping in the highest order. No, I refuse to follow you blindly. Iqra’.

16. (To non-Muslim friends, Iqra’ – pronounced ik-rawk – is believed to be the first Quranic word the angel Jibril conveyed to Prophet Muhammad (pbuh). It means ‘read’. As in learn. Get more knowledge. Don’t be uninformed. As the first word, the significance is big. It means that the first lesson from God ever is to gather knowledge.)

17. Having said that, fine. I do acknowledge religious authorities do good work too. I don’t like it, but fine I’ll entrust you with my zakat money. I hope that it goes towards mostly the poor and the needy, and not for ‘buka aib’ activities like khalwat raids.

Buka aib, or intentionally exposing one’s humiliation, is completely un-Islamic. I wish they remember this more. They’re very rude when they do this: bringing media, taking videos and pictures.

18. So religious authorities in which state do I pay to? There are 14 of them!

19. Advice received is to give to whomever, but perhaps more priority to the state you live in. In my case, Zakat Selangor. Cos I budak Shah Alam.

20. In Selangor, zakat is collected by MAIS (Majlis Agama Islam Selangor) and represented by LZS (Lembaga Zakat Selangor). Read their Annual Report 2015 for more info on their distribution.

21. I have dutifully paid my zakat to them for a few years. Most, if not all zakat bodies have their own zakat calculators because calculations in each state are slightly different. Type in ‘kalkulator zakat pendapatan [state]’ and Google should bring you to the correct page. I used this zakat calculator.

22. I usually pay my zakat in the beginning of the year. So for income collected in 2015, I pay between January-March 2016. Reason: I want the receipt. It can be used to get tax exemption (or is it tax rebate? Or tax deduction?). Anyway, usually my zakat payment is more than my tax payment, so when I submit my taxes I usually get the balance of the money back.

EDIT March 2020: The correct way to claim zakat payment for tax rebate is –

  • pay zakat and get the receipt before the end of the year (so do it in December of every year)
  • deduct that from your payable tax amount in the following year
  • example: use receipt for zakat paid in 2019 in income tax submission in 2020

23. So let’s say your payable Zakat amount was RM800. Income tax was RM1000. If you declare zakat payment, you only pay the remaining RM200.

24. Fast forward to 2017. Religious authorities are getting a lot more authoritarian. MAIS and LZS (and JAIS – Jabatan Agama Islam Selangor) tried to steal land from a private company, belonging to non-Muslim. Here’s the kicker: to build a mosque. The Court of Appeal ruled in favour to the private company, and they’re still going to contest it and bring it to Federal Court.

25. I’m sorry, but I don’t want my zakat money to be partly wasted on court payments. Especially when the case showed how they had abused their powers. Islamic bodies not affecting non-Muslims, my foot. I really don’t want to give my zakat money to MAIS in 2017. It’s a matter of principle.

26. Researched alternative agencies I can give zakat too. Because I’m reluctant to give up tax exemption, I want it to go to bodies that can give that receipt. It proved to be harder than I thought.

27. A kind Twitter follower (thank you!) helpfully suggested Islamic Relief Malaysia. Zakat paid to them is tax exempted! Prior to this, I know almost nothing about this NGO. Turns out they provide humanitarian aid worldwide, not just in Malaysia. I’m good with that!

(EDIT: Muslim Aid and UNHCR receives zakat contributions too! Credit goes to QQ – see comments section)

EDIT: is also an option!

28. After calculating my zakat for 2016 to pay in early 2017, I went on their website for payment details. Found the payment page. You can pay by multiple channels, including credit card. Was going to do that but the payment processor imposes 2.8% or 2.2% fee, depending on the channel.

I stopped here. Why pay the fee at all? So I decided to try and save RM20 or so and email them for their bank account number for direct bank transfer. That’s only RM0.11 in fee. Smart not.

29. It took them a few days, but they replied with a direct bank payment number. Here they are: Maybank Islamic  : 5-62142-708704 | CIMB Islamic : 8602073818 | Bank Islam : 12 029 01 0065643

30. The email I used was, and subsequently was replied by a very helpful staff. The staff asked me for proof of payment to issue the receipt, so I sent my transaction details. They asked if I want to donate the full amount to Islamic Relief Malaysia (not tax exempted – yeah I was surprised too), or to MAIP (exempted; Majlis Agama Islam Perlis).

Asked further and they said MAIP gives 50% of the zakat contribution back to IRM. I’m OK with MAIP, in fact I think the Perlis mufti is pretty cool – he questioned the possible unfair implementation of RUU355. (Update: MAIP will also start distributing to poor non-Muslims!) So I consented to MAIP, and filled up the letter. Sent back to IRM and they issued the receipt.

31. To recap, the order is: (1) Calculate zakat amount via zakat calculator; (2) Make zakat payment to IRM bank account; (3) Email them the transaction detail (and if you want tax exemption, mention your consent to MAIP), (4) Fill up a letter they send; and (5) Get receipt, keep for tax season.

32. I just want to say here that I’m not anti-religious authorities. I am anti-abuse of power, and there have been a lot of that from some of their personnel. Only recently they get highlighted more in the news, like the married couple khalwat raid by JAIS.

From the report, they were rude, invaded privacy, detained despite proof of marriage, and generally – sorry – behaved like assholes. This is not the only case. They raid marriage ceremonies, beauty pageants, hotel rooms, and God know what else. I need them to get their shit together, because this is making Islam look horrible. It’s making Malay people look horrible.

33. Well, anyway,  paying for zakat to an alternative agency this year soothes my conscience, but feel free to give to whomever you want (as long as they fit the criteria). I want my money to be used for good. Thank you kind souls in zakat administration who help us to help others. God bless you.

These are my zakat-paying journey, more or less, since I started paying zakat. My final questions for the day to you is:

  • Who do you pay to? If they are state religious bodies, are you happy with how they distribute the zakat money?
  • Do you know of any other bodies we can pay zakat to, and get tax exemption at the same time? I gave IRM as an example as I don’t know who else.

Thanks for reading, happy zakat payment, and Salam.

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  1. Q: What in the name of God is Zakat Ma’adin, Kunuz and Rikaz???
    A: Zakat Ma`adin: Zakat on the produce of gold/silver mine
    Zakat Kunuz: Zakat payable upon finding a treasure
    Zakat Rikaz: Zakat on other elements/minerals found under earth save for gold/silver, e.g. coal, crude/fossil oil, tin etc.

    Q: That leaves only one type of zakat left: Zakat Pendapatan. Tithe on my income. I believe this is the only zakat I have to pay now, but the more enlightened among you can advice.
    A: This is gonna be awkward, but I’m subscribing to the old school of thought on Zakat. Basically Zakat only becomes compulsory/Wajib due to 2 elements:
    1. Nisab – A minimum amount for one to be eligible to pay Zakat. The 2015 Zakat nisab was set at RM11k (sorry for any mis-quotation, but it was in the region of 10k – 12k)
    2. Hawlani Hawl – the passing of the 12 lunar/Islamic months

    My take on Zakat is one needs to have untouched savings equivalent to the Zakat nisab for 12 lunar months for Zakat to be compulsory. As we already know that Islam is fair & just & by simply earning more that the Zakat nisab doesn’t make Zakat compulsory. Give the scenario of a person who earns RM15k a month but has 10 dependents. If one carefully study the elements of Zakat (nisab & hawlani hawl) one will notice that Zakat is only payable by those with extra savings & if one doesn’t meet the Zakat criteria, no Zakat is compulsory.

    Wallah `Alam (Allah knows best)

    1. Hi StazOne,

      Thanks for the explanation on Zakat Ma’adin, Kunuz and Rikaz. The treasure one is interesting. Modern day interpretation?

      Allah knows best, indeed 🙂

  2. The examples of modern day treasure maybe revolves around the Mystery of Oak Island, Yamashita’s Treasure, Hunting Hitler etc. Wallah `Alam.

  3. Hi Suraya,

    I usually paid my Zakat Pendapatan to Lembaga Zakat Negeri Kedah because that’s where my hometown is. They update their Facebook page regularly and you can see clearly their zakat distribution to the needy which is a good thing because you know your money is going to the right place.

    Apart from that, you can go to LHDN website and search for Institution/Organization that is already approved by them under Section 44 (6) of Income Tax Act 1967 where all your contributions are tax deductible. There’s Yayasan for student, for the disabled and a lot more. If you got CIMBClicks, these organizations are listed in Pay Bills tab which you can choose to pay directly to organization of your choice (after you have researched the organization of course). But please note, these payments will be categorized as tax deductible and not tax rebate like Zakat contributions.

    Hope that helps. Cheers.

    1. Hi Dinhae,

      This is amazingly informative, thank you!

      I’m still confused about tax rebate vs tax deductible vs tax exemption to be honest. Should find out the difference soon, tax season is here!

  4. Hi Suraya,

    I’m still confused about zakat. I thought there is no compulsion in Islam.
    As a closet agnostic (ex-muslim) and working in KL, I don’t wanna pay zakat. I’m not eligible yet to pay income tax, but I’m not sure about zakat. I know the company’s HR would do everything for the employees when it comes to tax thingy, but I still don’t wanna pay zakat as I consider myself a non muslim. Is it optional or must all muslims pay zakat once they are income tax eligible? Can we not have the option not to pay zakat at all?
    I can’t ask my HR because they’re all typical muslims (I need to be very cautious).
    I just need help about this zakat thingy. That’s all.


    1. Hey Anon,

      Zakat is optional. There’s no police to catch you if you don’t pay, unlike income tax. If you don’t wanna, you don’t hafta.

  5. What a relief to know that someone else shares my frustrations! I have my doubts on the Islamic authorities in our country. Agree with you – when in doubt, seek knowledge.

    In addition to Islamic Relief, Muslim Aid receives zakat payments too. Here’s the link:

    You can also pay zakat through UNHCR, which is the UN agency for refugees. They’re currently only distributing zakat to Syrian refugees in Jordan though, and the minimum contribution is USD525. Link:

    On a second note, for the same amount of zakat vs tax exempt donations, you would pay less personal tax with deductions on zakat. Can test that in your online tax computation come tax season. (:

    I learned a whole lot from this tweet thread.

    1. Thanks for the tips, QQ! Great to know about Muslim Aid and UNHCR! Will add to the post crediting you!

      Thanks also for the twitter link, that’s thoughtful of you 🙂

      Have a wonderful year <3

  6. Hi Suraya,

    Really glad that there are people out there who also share my qualms regarding the Islamic authorities in Malaysia. I have only recently found your website, and I’d like to thank you for the easy to understand explanations. Haha.

    I have a few questions about your experience in paying zakat. Regarding the tax refund arising from higher zakat payment as opposed to income tax, are you certain that you will get the refund? The Income tax Act 1967 as at 1 October 2017, Section 6A(4A) states that:

    Where the total amount of the rebate under subsections (2) and (3)
    exceeds the income tax charged (before any such rebate) for any year of
    assessment, the excess shall not be paid to the individual or available as a
    credit to set off his tax liability for that year of assessment or any subsequent

    I’m still not eligible to pay zakat pendapatan yet, but will be next Islamic year. And me being the greedy bugger I am, want to get my money’s worth, while still fulfilling my duties as a muslim as well as a Malaysian taxpayer. I’m currently trying to plan my upcoming financial commitments and identify the benefits and exemptions I can be entitled to and utilize them accordingly. I’m uncertain if that specific subsection had recently been introduced, but I would really appreciate your input on this.

    1. Hi Hak,

      You’re welcome, glad to have you here 🙂

      On your Qs, that’s a tricky one. I’ve always gotten some tax refund back. The process is automatic after I file taxes and declared all income and tax relief (including zakat). Unless I did my taxes wrong (I hope not), it should be the same for you.

      That said, I have no way to confirm whether what I did was 100% correct. Will be extra careful and take notes for this year’s tax filing. If I come across anything useful, I’ll edit this page so its as comprehensive as possible.

    1. Hi AA,

      I noticed when I paid in March 2018, they were silent about MAIP. The receipt and letter issued from IRM still say tax exempted though.

      Copy+pasted from the letter;
      **ISLAMIC RELIEF MALAYSIA telah mendapat kelulusan bagi status pengecualian cukai pendapatan di bawah subseksyen 44 (6B) Akta Cukai Pendapatan 1967 [No Ruj.: (8.09)248/40/71338(vol. 16)(SK.14)(13)]

      1. Thanks Suraya, I managed to contact IRM directly via their Whatsapp. Sebarang sumbangan kepada islamic relief layak mendapat tax-exempted resit kecuali zakat, fidyah dan qurban. For zakat tax rebate, can still pay to IRM and request it to be for Zakat MAIP.

        Anyway, thanks for this article. I am so gonna move away from paying to LZS. Wish I found your article earlier, but I guess better late than never!

  7. Hey Suraya and friends,

    Just want to share. If you donate to Aman Palestin, you can get tax deduction too. You need to go their website, fill in online form and complete the donation using FPX. Make sure to print/save the receipt.

    More info about it can be found here:

    I hope this helps.


  8. Tax treatment between IRM and zakat authorities is different.

    IRM would only allow you to get deduction under allowable expenses.

    Zakat reciept issued by zakat authorities would allow you to get tax deduction directly.

    To make it simple,

    Receipt issued by IRM (and other same NGO) is on the same level with receipt of buying books, subscribing internet where you are allowed to deduct you income prior tax calculation.

    Receipt issued by Zakat Authorities (issued by all states religious council only) is the same level as paying tax itself. That why you can set-off the zakat payment againts the tax payment itself.

    1. Phew, good to know I’ve been doing my taxes right all this while. Thanks for the clarification Adi!

      p/s- nice website you have there!

  9. FYI. If the zakat payment you made is higher than your income tax for the year, u get nothing back. E.g. u paid rm1000 to zakat. U suppose to pay rm800 to lhdn. If u already paid rm800 to lhdn, then lhdn will return rm800. That’s how it works I think.

    1. Hi Michael T,

      That makes sense, but why do I recall getting refunds from LHDN? I’ll pay attention during next year’s zakat/tax time and will report back here

  10. Thank you for this wonderful post. I have a question I was wondering if you could enlighten me.

    Is it possible for me to choose the amount of Zakat i wish to pay. For example, I would like to pay more than the 2.5% calculation in order to pay RM0 of income tax. Or is it a fixed amount? No more, no less, but exactly 2.5%

    Thank you

    1. Hi Steve,

      Sometimes with the tax rebates and reliefs and everything, the 2.5% in zakat might even exceed one’s income tax, so I don’t see why not – but definitely check with LHDN for a conclusive answer.

  11. Thank you for your detailed, informative and helpful post outlined here. I too, have little to none knowledge of this. Really appreciate this Suraya !

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