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 fulfilling 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 via Muis, you may declare it as a business expense.

Zakat in the Notice of Assessment (NOA) letter

In the Notice of Assessment (NOA), your Zakat contribution(s) will NOT appear as a line item, even under “Donations“.

Approved donations are contributions made to any Institutions of a Public Character (IPC) that benefits the local community and not limited to sectional interests or groups based on race, belief or religion. Muis is not designated as an IPC.

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.

VERIFYING YOUR ZAKAT CONTRIBUTION WITH IRAS

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 is shown here as "ZAKAT EXPENSES".

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