Zakat and Tax Planning Quiz

What is the main purpose of zakat in Islam?

• To increase government revenue

• To purify wealth and help the needy

• To encourage foreign investment

• To fund infrastructure projects

Who collects zakat in Malaysia?

• Inland Revenue Board of Malaysia (LHDN)

• State Islamic Religious Councils (SIRC)

• Ministry of Finance

• Bank Negara Malaysia

What is the minimum percentage of zakat to be paid on savings in Malaysia?

• 1%

• 2.5%

• 5%

• 10%

Which of the following is NOT subject to zakat in Malaysia?

• Savings

• Gold and silver

• Real estate for personal residence

• Business inventory

How does paying zakat affect a Muslim's income tax in Malaysia?

• Zakat is ignored in tax calculation

• Zakat can be used as a rebate to reduce tax

• Zakat increases taxable income

• Zakat is taxed separately

Which equation shows how to calculate zakat on savings?

What is a main difference between zakat and tax in Malaysia?

• Zakat is compulsory for all residents, tax is voluntary

• Zakat is a religious obligation, tax is a legal obligation

• Zakat is paid annually, tax is paid only once

• Zakat is collected by the federal government, tax by state governments

If a Muslim in Malaysia pays RM 1,000 in zakat and has a tax payable of RM 5,000, what is the final tax payable after zakat rebate?

• RM 6,000

• RM 4,000

• RM 5,000

• RM 1,000

Which of the following is NOT a valid tax planning strategy in Malaysia?

• Claiming deductions

• Underreporting income

• Investing in tax-exempt instruments

• Using tax rebates

Which of the following is tax-exempt income in Malaysia?

• Employment income

• Rental income

• Dividend income from approved unit trusts

• Business income