Zakat As A Reduction Of Income Tax A Case Study At Baznaz Of Central Sulawesi Province

Abstract

This study aims to determine the application of zakat as a tax deduction to taxpayers in (BAZNAZ) Central Sulawesi Province The type of research used is a field research method which is carried out with a qualitative approach. By interviewing the Deputy Chairman I for Collection (BAZNAZ) and Vice Chairman III for Planning, Finance, Distribution and Utilization Reporting (BAZNAZ) Central Sulawesi Province and some taxpayers. The results of the study are that zakat can be deducted from taxable income, if the zakat paid must go through a zakat institution inaugurated by the government, the inhibiting factors in the application of zakat as a deduction of taxable income are the awareness of paying zakat is still low, people are not interested in zakat institutions, the limited number of BAZNAS or Laz authorized by the government, the public's willingness to include Proof of Zakat Deposit (BZS) on the Annual Tax Return and the lack of  socialization of zakat as a deduction for individual taxpayers' income tax.