ABSTRACT

Indonesia and Malaysia have applied zakat regulation as an income tax deduction, but whether it has been effectively implemented or not, it has still a big question mark. This study aims to develop framework of zakat regulation to optimize zakat and tax compliances. Therefore, this study tries to deepen about how does the implementation of zakat regulation as an income tax deduction in Indonesia and Malaysia, and how does the response of people who are obliged to pay zakat and tax compliance with this regulation. The population in this study were academicians in the field of Islamic accounting and finance, Committee of Islamic Economic Society and Zakat management organization. Future research will include validating the proposal framework using an empirical data.

Keywords: Zakat regulation, zakat and tax compliance