Baznas urges zakat through official bodies be direct tax credit
The proposal would shift zakat from reducing taxable income to cutting tax due, giving donors a bigger incentive.
Baznas RI is urging that zakat paid through official amil institutions be recognized as a direct tax deduction, or tax credit, rather than only as a deduction from taxable income under current rules. The proposal was presented at the FGD Jurnalisme Filantropi themed “Pengurangan Pajak Secara Penuh (Tax Credit): Peluang dan Tantangan” at Gedung PP Muhammadiyah in Jakarta on Sabtu (18/7/2026). Baznas RI leadership member Rizaludin Kurniawan said the idea comes from many individual and corporate muzaki. He said similar schemes already apply in Malaysia, Arab Saudi, Sudan, Pakistan, Bangladesh, Inggris, Spanyol, and Korea Selatan. Baznas believes a stronger incentive would encourage muzakki to channel zakat through formal institutions. Of about 180 juta Muslims who carry out ziswaf, only about 20 juta are recorded as donating through Baznas or official zakat institutions.