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Islam requires its followers to pay the Zakah, a religious due. Zakah purifies one's wealth and uplifts the socio-economic status of the ummah simultaneously. Zakah is one of the five pillars of the Islamic faith, which is an obligatory form of “charity”, and every Muslim is expected to contribute. Zakah purifies property, but it also purifies the hearts of Zakah payers from greed and selfishness. According to National Fatwa Committee, business entities formed under the principle of syakhsiyyah i’tibariyyah (legal entity) are obliged to pay Zakah under the principle of khultah (group ownership). However, factors that influence a business entity’s Zakah payment are still not properly defined, and very limited research done on this. Malaysian Zakah institution still faces several obstacles to increase the collection of business Zakah. Most of the previous studies on this issue do not explain more detail about the factor chosen as leadership support, stakeholder engagement, and elective accountability. Hence, the purpose of this research is to propose a conceptual framework for corporate Zakah payment decisions. This research also applies the Institutional Work theory. The aim of this research is to identify Zakah payment influencing factors in business entities and take Public Listed Companies (PLCs) who are entitled as Shariah Compliant Companies as a research subject and decision-makers in Shariah Compliant Companies as the research object.
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In-Text Citation: (Ab Rahman et al., 2022)
To Cite this Article: Ab Rahman, S. M., Abdul Wahid, K., Osman, A. A., Mamat@Ibrahim, N. Z., Abdul Wahab, M. H. Al-A., and Yaacob, A. A. (2022). The Factors Influencing of Value based Perspective on Corporate Zakah Payment Decisions in Malaysia: A Proposed Conceptual Model. International Journal of Academic Research in Accounting Finance and Management Sciences. 12(2), 285 – 297.
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