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All Journal Millah: Journal of Religious Studies Al-Mu'tabar Iseedu: Journal of Islamic Educational Thoughts and Practices
Husen Ismail, Faisal
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Journal : Millah: Journal of Religious Studies

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Zakat on Non-Cash Employment Benefits: A Maqasid al-Shariah Framework Zahri, Fatin ‘Alia; Zahri, Mohd. ‘Adli; Ambak, Azlinah; Husen Ismail, Faisal; Hamat, Zahri
Millah: Journal of Religious Studies Vol. 24, No. 2, August 2025
Publisher : Program Studi Ilmu Agama Islam Program Magister, Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/millah.vol24.iss2.ar13

Abstract

This study explores the zakatability of Benefits in Kind (BIK)—non-cash employment benefits such as housing, transport, and utilities—within the framework of Maqasid al-Shariah. Although these benefits are subject to taxation under Malaysia’s Inland Revenue Board (IRB) guidelines, they are typically excluded from zakat assessments by State Islamic Religious Councils (SIRCs). This gap raises concerns regarding distributive justice and the spiritual objective of wealth purification. Drawing on classical and contemporary Islamic jurisprudence, particularly the principles of qiyas, maslahah, and istihsan, this paper argues that BIK constitutes wealth (mal) and should be included in zakat assessments. The study employs qualitative content analysis of fatwa literature, AAOIFI zakat accounting standards, and BIK valuation models applied by the IRB. Findings suggest that excluding BIK contradicts zakat's ethical and redistributive purposes, especially in urban contexts where BIK significantly enhances financial capacity. The paper recommends adopting standardized valuation practices from the IRB, issuing a national-level fatwa, implementing Shariah-compliant audit mechanisms, and public awareness campaigns to improve compliance and governance. These reforms ensure justice and equity and align Malaysia’s zakat practices with the dynamic realities of modern compensation structures. The paper concludes with policy recommendations for harmonizing zakat and taxation systems, thereby strengthening the institutional credibility, transparency, and effectiveness of zakat as a tool for socioeconomic justice.
Co-Authors Ainaa Mardhiah, Wan Ambak, Azlinah Andaryati, Erni Baba, Ramdan Fathurrohman, Rizal Kirin, Arwansyah Musyrifah, Farida Rouzi, Kana Safrina Saryanto Saryanto Shafiq Sahimi , Mohd Tumadi, Nurul Hidayah Zahri Hamat Zahri, Fatin ‘Alia Zahri, Mohd. ‘Adli