Zakat: Literature review and practical methods of calculation

Abstract

The incorporation of zakat into the national economy contributes to optimizing the living conditions of citizens by combating socio-economic phenomena such as poverty and unemployment. The lack of an institutional structure for zakat hinders the achievement of its objectives. It is necessary to collect and distribute it institutionally, by creating a mechanism dedicated to this work, in order to go beyond simple personal charity. It is essential to establish a law to establish zakat in the economy. This law takes into consideration financial and accounting elements related to its establishment. These aspects include financial planning, forecast budgets, an accounting system in accordance with the postulates and principles of Sharia, as well as an internal and external control mechanism, as well as administrative measures and a media function for the structure of zakat.

In this article, we will present the various Shariah-compliant techniques for determining the Zakat base of companies, such as the adjusted capital, the adjusted working capital requirement, and the net assets.

In the same vein, the practical illustration of zakat calculation in Moroccan companies using the net asset method leads to the separation of zakat assets and liabilities, to then determine the zakat base and the amount due.

The zakat calculation methods applicable in Malaysia represent the main reference methods in zakat matters.

Keywords: Institutional structure; Zakat law; Shariah; Zakat base; Net assets.

JEL Classification : G30 ; H20 ; M41.

Paper type: Theoretical article.