Guides
Business Zakat: Tax Deduction for Companies (Form C, A13)
Updated: 8 November 2026 Independently fact-checked.
# Business Zakat: Tax Deduction for Companies (Form C, A13)
Companies can deduct business zakat paid to state zakat authorities in Form C. This article explains Box A13, the deduction limit of 2.5% of A9, and the difference from the individual zakat rebate.
Updated: 8 November 2026 — Independently fact-checked.
- Review date: 8 November 2026
- Year of assessment: Current YA (Box A13 of Form C [Pin. 2025])
- Status: Published
What is business zakat?
Business zakat is zakat on business property (goods/services) imposed on sole proprietorships, partnerships, cooperatives and companies. Collection is carried out at the state level by state zakat authorities (e.g. MAIDAM).
Source: MAIDAM — Business Zakat (see Official sources section).
Deduction in Form C
Companies can deduct business zakat paid to state zakat authorities in Form C. Form C [Pin. 2025] contains Box A13 — Business zakat (Limited to 2.5% of A9); it is deducted in the computation of aggregate income (A14 = A9 − (A10 to A13)).
Source: HASiL — Form C [Pin. 2025] example (see Official sources section).
Deduction limit
The deduction is limited to 2.5% of A9 (aggregate/statutory income — verify the definition of A9 in the current Form C). Do not exceed this limit when claiming.
Source: HASiL — Form C [Pin. 2025] example (see Official sources section).
Difference from the individual zakat rebate
Muslim individuals get a zakat rebate (reduction of final tax, including zakat on income/fitrah); companies get a deduction (reduction of chargeable income) — two different mechanisms. Do not write "company zakat rebate" — companies use the A13 deduction, not a rebate.
Source: HASiL — Reliefs & Rebates (cross-reference) (see Official sources section).
Items to confirm before publication — this matter still awaits official HASiL confirmation — re-check with HASiL before making decisions.
- The precise statutory provision for the business zakat deduction in ITA 1967 (section/paragraph) — not pinpointed in this review.
- The definition of A9 and the combined treatment of zakat + donations (10% donation limit) in Form C.
- Treatment for cooperatives/PLT (does Box A13 apply?) — verify.
Caveats
- Do not invent percentages/limits; only refer to the official form text (2.5% of A9).
- Refer to the state zakat council for payment eligibility (not LHDN).
Official sources
All sources below were reviewed on 8 November 2026. Official HASiL pages and documents: