Darul Iftaa Mahmudiyyah

Tax-Certificate that is been provided by Islamic Institutions in South africa on Zakaat donations? are we liable to pay this back...

· 14 Muharram 1427 AH1 min readFatwa 13920English

Question

Tax-Certificate that is been provided by Islamic Institutions in South africa on Zakaat donations? are we liable to pay this back...

certain South African Islamic institutions have had to register as N.G.O's and are providing a tax certificate for Donations Tax purposes. this tax certificate is provided for all donations like Zakaat, Lillah etc. a donor can claim 30% of the donated value as a rebate at the end of the finanial period. the question that I have is the donor now liable to re-pay the 30% portion claimed-but not recieved from revenue services back as Zakaat or Lillah etc. the simple example is that I give R10.00 in Zakaat, I am allowed to claim R3.00 back on my tax-return but I do not get this money back from South African Revenue Services - it is a deduction from allowances that the goverment allows you as your contribution to the nation. I have distributed my Zakaat in full to the organisation.

the issue is very complex and I cannot explain all in the short note or time period, but the above is the jest of the question.

Answer

The Zakaat and Lillah donations are different from the 30% rebate at the end of the financial year. The Zakaat or Lillah is paid in full to an Islamic organisation.

The 30% rebate is not from the Zakaat or Lillah donations. It is a deduction from the government’s financial portfolio.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai

Answered by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/13920
Fatawa SA: https://fatawa.co.za/fatwa/askimam-13920

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