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        1 - Factors Affecting Concern about Zakat as a Tax Deduction in Indonesia
        D. Siswantoro S. Nurhayati
        Historically, the Islamic state collected zakat (similar to the tithe of other regions) as national income. In Indonesia, the private sector can raise zakat funds more effectively than the government. In 2010, zakat became tax-deductible income. This paper tries to anal More
        Historically, the Islamic state collected zakat (similar to the tithe of other regions) as national income. In Indonesia, the private sector can raise zakat funds more effectively than the government. In 2010, zakat became tax-deductible income. This paper tries to analyze some factors that affect preference for zakat as a tax deduction in Indonesia. The effectiveness of the regulation is also investigated. In addition, zakat can deduct tax is a plan for next regulation proposal. This research also aims to see for further action, zakat can deduct tax. Research methodologies were hard copy and online questionnaires and phone interviews with the tax office’s customer service. Samples were taken from April through June 2012. Results showed that motivation and trust factors affected the preference for tax-deductible zakat, while most tax officers were not aware of the popular concern about zakat as a tax deduction. We propose involving human resources departments in companies’ deductions of taxable income and promoting awareness of the issue among tax officers as solutions to this problem. Manuscript profile