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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Zakah for Benefit in Kind At The Kelantan Islamic Religious and Customs Council (MAIK): An Exploratory Analysis

Fatin Alia Zahri, Radin Firdaus Radin Badaruddin, Mohd Adli Zahri, Norafzan Awang

http://dx.doi.org/10.6007/IJARBSS/v14-i6/21926

Open access

This study investigates the imposition of zakat on employment income, including Benefits in Kind (BIK), as mandated by the Kelantan Islamic Religious and Customs Council (MAIK) following a decision by the Jamaah Ulama’ on March 16, 1999. While employment income such as basic salary and fixed remuneration is unequivocally subject to zakat, the inclusion of BIK - non-cash benefits like vehicle facilities, accommodation, furniture, and kitchen equipment - remains a nuanced issue. This paper aims to elucidate the perspectives of MAIK informants responsible for zakat assessments on employment income, with a particular focus on their interpretation of BIK within this context. The analysis is structured around three core areas: first, an exploration of the conceptualization of “anything received related to income” to include BIK; second, a critical review of existing literature that supports the obligation of zakat on BIK; and third, an in-depth examination of the perspectives of MAIK informants on the zakat applicability to BIK in employment income. The findings suggest a foundational basis for considering BIK as part of zakatable employment income, thereby contributing to the broader discourse on zakat jurisprudence and its application in contemporary Islamic finance.

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(Zahri et al., 2024)
Zahri, F. ‘Alia, Badaruddin, R. F. R., Zahri, M. ‘Adli, & Awang, N. (2024). Zakah for Benefit in Kind At The Kelantan Islamic Religious and Customs Council (MAIK): An Exploratory Analysis. International Journal of Academic Research in Business and Social Sciences, 14(6), 1322–1333.