In welcoming the holy month of Ramadan, the National Zakat Agency (Baznas) encourages corporate taxpayers to take advantage of this momentum by fulfilling their corporate zakat obligations through officially established or government-authorized zakat institutions.
Corporate zakat payments are not only a form of religious compliance but also provide fiscal benefits. In accordance with prevailing tax regulations, zakat that meets the applicable requirements may be deducted from gross income in the calculation of taxable income.
Optimizing the Role of Corporate Zakat
Ramadan presents a strategic opportunity to enhance the contribution of corporate zakat in strengthening the community’s economic resilience. To date, 460 companies have channeled their zakat through Baznas, and this number is expected to continue growing as corporate awareness increases regarding zakat’s social and economic impact.
Beyond its social value, distributing zakat through Baznas also offers administrative advantages for companies, including:
- Reduction of taxable income
- Improved tax compliance
- Strengthened corporate image as a socially responsible and zakat-compliant entity
To further strengthen collaboration with muzakki (zakat payers), Baznas has initiated the Baznas Collaboration Forum 2026. This forum serves as a platform for synergy between zakat management institutions and the business sector to promote awareness and consistency in zakat payments through official, trustworthy, and transparent institutions. The initiative aims to expand zakat’s impact in poverty alleviation and the improvement of public welfare.
Tax Deductibility Provisions for Zakat
The deductibility of zakat from gross income is regulated under PMK 114/2025. The regulation stipulates that zakat and mandatory religious contributions may be deducted from gross income, provided they are paid to zakat agencies or institutions established or authorized by the government.
However, several important conditions apply:
- Zakat payments must not result in a fiscal loss in the relevant tax year.
- If zakat payments create a fiscal loss, the deductible amount is limited to the portion that does not generate such loss.
Furthermore, PER-04/PJ/2022 as last amended by PER-22/PJ/2025 specifies the authorized zakat institutions eligible to receive zakat that qualifies as a gross income deduction, consisting of:
- 3 National Zakat Agencies (Baznas)
- 49 national-scale Amil Zakat Institutions (LAZ)
- 2 Amil Zakat, Infaq, and Sadaqah Institutions (Lazis)
- 39 provincial-scale LAZ
Approximately 93 regency/municipal-scale LAZ