The Role of Zakat Dedication as a Tax Incentive in Enhancing Compliance and Achieving Financial Justice

This study examines the effect of recognizing zakat deductibility from income tax to enhance zakat compliance and promote fiscal justice in Yemen. Drawing on the Tax Incentive Theory, Fiscal Justice Theory, Legal Commitment Theory, and the Theory of Planned Behavior (TPB), the study explores five key predictors: legislation, financial burden, administrative procedures, community awareness, and ethical alignment. A total of ۴۰۱ valid responses were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings indicate a strong and significant impact of zakat deductibility on compliance behavior (β = ۰.۷۴۴, R² = ۰.۵۵۴, f² = ۱.۲۴۲, Q² = ۰.۵۵۰, p < ۰.۰۰۱). Administrative procedures emerged as the most influential factor (β = ۰.۴۰۲), while legislation (β = ۰.۱۱۶) and awareness (β = ۰.۱۱۳) showed smaller yet significant effects. These results highlight the importance of transparent, simplified, and technology-enabled systems in promoting voluntary compliance. The study contributes to Islamic fiscal literature and offers policy guidance for integrating zakat within national tax systems in fragile contexts. Key recommendations include digitizing zakat registration, aligning zakat and tax policies, and enhancing outreach in underserved areas.

کلیدواژه ها:

compliance ، Fiscal Justice ، legal commitment ، PLS-SEM ، Tax Deduction ، tax incentive ، Yemen ، Zakat