Zakat in Income Tax Filing

FILING YOUR ZAKAT FOR TAX RELIEF

Zakat as an Income Expense

According to the Inland Revenue Authority of Singapore (IRAS), Zakat is treated as an expense under Section 14 of the Income Tax Act, and is set off against the income of the contributing individual / organisation. Zakat contributions are NOT eligible for 2.5 times tax-deduction.

For example, if an individual pays $200 in Zakat, he or she is only entitled to claim $200 as an expense against his / her income.

IRAS Auto-Inclusion Scheme (AIS) for Zakat

Under the IRAS Auto-Inclusion Scheme (AIS), Muis will automatically submit the contribution details of individuals who opt-in to the scheme when contributing their Zakat via Muis. You can indicate “Yes” when asked on our platforms if you would like to declare your Zakat for the IRAS auto-inclusion scheme.

For organisations contributing Zakat on Business, you can include the amount of contribution as your business expense.

Zakat in the Notice of Assessment (NOA) letter

Under the Notice of Assessment (NOA), Zakat expenses are reflected as part of your Employment / Total Income. Thus, it will NOT be shown as a separate line item in the NOA.

Your Zakat does not appear under or is counted as “Donations“. Approved donations refer to donations made to any approved Institution of a Public Charter (IPC) or the Singapore Government that benefits the local community and are not confined to sectional interests or groups of persons based on race, belief or religion.

If you opted in for auto-inclusion when contributing Zakat, your Zakat contribution(s) will have already been deducted from your Employment / Total Income in your NOA.

Reviewing Your Zakat Contribution Details with IRAS
Please note that you can only review your Zakat expense details on the IRAS myTax portal during the annual tax filing period from 1 March to 18 April.

GUIDE ON INCOME TAX FILING FOR ZAKAT

STEP 1

STEP 2

Click on 'INDIVIDUALS'.

STEP 3

Look under 'FILE INDIVIDUAL INCOME TAX FORM B/B1' (please note this form will only be viewable during the annual income tax review period from March-April)

STEP 4

Your Zakat contribution is shown here as ZAKAT EXPENSES.

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