Abstract: This paper intends to explore the motivating factors of corporate zakat payment in line with the prescribed Islamic laws, it aims to check if zakat is paid based on conviction and commitments by the corporate organization or paid as tax that could be evaded when there are lapses in management. The paper reviews the concept of zakat according some selected financial institutions saddled with accounting and auditing of zakat funds, to study their perceptions of zakat and its obligation in respect to corporate payments. The methodological approach of the paper is mainly qualitative, sourcing it data from the previous literature conducted on the topic. The discussion on the analysis of the research findings indicates that there are misinterpretations of zakat leading to misconceptions and in appropriate perceptions as to whether zakat paid is to be as expense or dividend in the organizational balance sheets and income statements. The paper reveals that zakat payment is motivated by total submission to Allah’s command, motivated by earning his pleasures and avoiding his anger, zakat is also paid to benefit from spiritual and material growth and increase in wealth. The paper also presents tax rebate as a motivating tool used to facilitate corporate zakat payments.
Keywords: motivating, corporate, zakat, payments.
Title: EXPLORING THE MOTIVATIONAL FACTORS FOR CORPORATE ZAKAT PAYMENTS
Author: SHERIFF MUHAMMAD IBRAHIM
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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