ysmi
12-10-11, 11:03 PM
Salaams,
After reading a research paper that certain jurists agree that the method of business Zakat calculation is not rigid, they have suggested an alternative option to use gross income/revenue as the Zakat receptacle to calculate the percentage upon.
(Link here http://eprints.usm.my/17152/1/Business_Zakat_Accounting_and_Taxation_in_Malaysia .pdf )
Do you feel that this is an acceptable alternative to the working capital method? The reason given by the jurist for using business income as a basis was that it allows for the income statement to be used, as opposed to the balance sheet. This would allow for integration with the taxation system in Malaysia to deduct Zakat as a tax-allowable expense.
Could you please point me in the right direction to find an answer on this topic, research or otherwise?
Many thanks in advance for your answer, wa Jazaykum Allah Kheir.
After reading a research paper that certain jurists agree that the method of business Zakat calculation is not rigid, they have suggested an alternative option to use gross income/revenue as the Zakat receptacle to calculate the percentage upon.
(Link here http://eprints.usm.my/17152/1/Business_Zakat_Accounting_and_Taxation_in_Malaysia .pdf )
Do you feel that this is an acceptable alternative to the working capital method? The reason given by the jurist for using business income as a basis was that it allows for the income statement to be used, as opposed to the balance sheet. This would allow for integration with the taxation system in Malaysia to deduct Zakat as a tax-allowable expense.
Could you please point me in the right direction to find an answer on this topic, research or otherwise?
Many thanks in advance for your answer, wa Jazaykum Allah Kheir.