Assalamualaikum,
I pray that your Ramadan is going well inshaAllah. I just wanted to bring to your attention some key points during this part of the year - June 30 is the end of the financial year in Australia
- The National Zakat Foundation is DGR certified - meaning all your Zakat payments are 100% tax deductible
But is claiming Zakat as a tax deduction halal?
Before I answer this question, let's consider the below points - You give away approx. 2.5% of your saved income as Zakat.
- You pay tax on the same 2.5% of your income.
Hence, if you are paying Zakat to a DGR certified charity, wouldn't it make sense that the tax you paid on this amount is returned to you? Ideally, your income should only be taxed after removing the Zakat-able amount. That is exactly what paying your Zakat with NZF can help you do inshaAllah.
Once you do pay your Zakat you now have 3 options - Choose not to claim from your tax
- Claim tax and the money you get back, give again as Sadaqah
- Claim and keep the money.
I hope you find this reminder beneficial. Do think about it. By paying your Zakat during Ramadan your rewards are already multiplied. Why not further increase these rewards financially by paying your Zakat and Sadaqah by Tuesday, June 30 2015? And then, increase your rewards even further by giving away the tax claimed back in Sadaqah! Truly, Allah is the greatest.
We are extremely grateful for your on-going support in enabling us to continue this vital work of helping some of the most needy members of our own community. |
