Abstract:
Historically, the Islamic state collected zakat (similar to the tithe of other regions) as national income. In Indonesia, the private sector can raise zakat funds more effectively than the government. In 2010, zakat became tax-deductible income. This paper tries to analyze some factors that affect preference for zakat as a tax deduction in Indonesia. The effectiveness of the regulation is also investigated. In addition, zakat can deduct tax is a plan for next regulation proposal. This research also aims to see for further action, zakat can deduct tax. Research methodologies were hard copy and online questionnaires and phone interviews with the tax office’s customer service. Samples were taken from April through June 2012. Results showed that motivation and trust factors affected the preference for tax-deductible zakat, while most tax officers were not aware of the popular concern about zakat as a tax deduction. We propose involving human resources departments in companies’ deductions of taxable income and promoting awareness of the issue among tax officers as solutions to this problem
Machine summary:
This paper tries to analyze some factors that affect preference for zakat as a tax deduction in Indonesia.
Results showed that motivation and trust factors affected the preference for tax-deductible zakat, while most tax officers were not aware of the popular concern about zakat as a tax deduction.
Takidah (2004) used SEM (LISREL) to analyze the service quality of Baznas (National Zakat Institution of Indonesia) by satisfaction and trust factors (shared value, communication, and opportunistic behavior) reported by zakat payers.
The present research has the following hypotheses: H1: Satisfaction significantly affects the preference for zakat as tax-deductible income and tax deduction positively.
03/2010 Tax Office Regulation No. PER - 6/PJ/2011 Tax Office Regulation No. PER - 33/PJ/2011 based on some Ministry of Religious Affairs Decisions Figure 1: Regulation hierarchy of Zakat as tax-deductible income in Indonesia Ministry of Law and Human Rights Ministry of Finance Act No. 11/2006 ?
Regulation hierarchy of Zakat as tax deduction in Aceh Table 1: Previous research on factors affecting Zakat payment Independent variable Dependent variable Result Source Commitment (+) Sig.
/ Figure 3: Research model Table 2: Filter data Description Total 1 Hard-copy 280 Online 210 Total 490 Incomplete online data (48) Incomplete hardcopy data (40) Data final 402 Table 3: Descriptive statistics of respondent preference Factor Loading Mean Motivation(mot) Altruism(m3) 4.
248775 CONCLUSION AND SUGGESTIONS Only the trust and motivation factors significantly and positively affected the preference for zakat as tax-deductible income and tax deduction.
Effectiveness of Zakat as Deductible Income Tax Regulation in Indonesia.