Corporate Zakat in Practice: Legal and Regulatory Perspectives from Muslim Jurisdictions

Corporate zakat, the obligation for businesses to give a portion of their wealth in charity has become an important topic as Islamic finance continues to grow globally. While zakat is traditionally seen as a personal duty for Muslims, many scholars and regulators now argue that companies, especially Islamic Financial Institutions (IFIs), also carry this responsibility. However, how corporate zakat is applied and enforced varies greatly between countries. This paper explores how corporate zakat is practiced in several Muslim-majority countries, including Kuwait, Saudi Arabia, Yemen, Malaysia, and Indonesia. It looks at the legal frameworks, religious rulings (fatwas), and regulatory bodies that guide zakat payments in these places. In some countries, corporate zakat is mandatory and enforced by law, while in others it is treated as a voluntary act based on religious advice. By comparing different national approaches, the paper highlights both the progress and the challenges in making corporate zakat a reliable part of business practice. It also discusses ongoing debates about whether companies, as legal entities, can be truly held accountable for religious duties like zakat. The findings suggest that clearer laws, stronger institutional support, and better public understanding are needed to make corporate zakat more effective and consistent across the Islamic world.