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 making their Zakat contribution to 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.
Approved donations refer to cash donations made to any approved Institution of a Public Charter (IPC) or the Singapore Government that benefit the community. Your Zakat will not appear under or be counted as part of donations.
If you opted in for auto-inclusion when you made payment for your Zakat, your Zakat contribution(s) has/have been deducted from your Employment/Total Income in your NOA.
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.