Apartheid Style Income Tax in Malaysia - Clearer Presentation

Above Muslim Income Tax

Non Muslim Income Tax

ScallopEatMcD : Can you tell us where is the zakat money after collection? Income tax collection will be used mainly for Malay Muslims, zakat collection only use for Malay Muslims. (Edited for clarity) And most, if not all Muslims contribute to zakat!

Non Muslim Income Tax, pays... by dswami

See these filled up forms on the differences with the same pay, between a Malaysian Non Muslim and a Muslim Malaysian, there are two sets of forms, for you to view, 5 pages each

Muslim Income Tax by dswami

One perk of making zakat payments is that it acts as a rebate for your annual income taxes. A tax rebate is a reduction in the actual amount of income tax you have to pay – unlike tax reliefs, which merely reduce your chargeable income amount. Furthermore, the cap on the amount of tax rebate you can claim for zakat is subject to the maximum of tax charged.

All this means that zakat payment can help reduce the amount of income tax you pay tremendously. In fact, this rebate can sometimes be enough to reduce your amount of income tax to RM0.