The Directorate General of Taxes (DGT) has officially increased the number of bodies/institutions designated as the recipients of mandatory amil zakat or religious donations which are deductible from gross income. The stipulation is outlined in the Director General of Taxes Regulation No. PER-08/PJ/2021 concerning Entities/Institutions Established or Legalized by the Government and Stipulated as the Recipients of Mandatory Amil Zakat or Religious Donations that are Deductible from Gross Income (PER-08/2021).
Enacted on 6 April 2021, this regulation simultaneously revokes the former provision, PER-15/PJ/2020. As per Article 1 of PER-08/2021, mandatory amil zakat or religious donations can be deducted from gross income on the condition that they are paid through bodies/institutions receiving mandatory amil zakat or religious donations established or legalized by the government.
Details of the bodies/institutions receiving amil zakat or religious donations are outlined in the Annex of PER-08/2021. In the Annex, there are 3 Amil Zakat National Agencies (Badan Amil Zakat Nasional/Baznas), 30 national Amil Zakat Institutions (Lembaga Amil Zakat/LAZ), 2 Amil Zakat, Infaq, and Shodaqoh Institutions (Lembaga Amil Zakat, Infaq, dan Shodaqoh/Lazis), 21 provincial LAZ, and 30 regency/city LAZ. Further, the Annex also lists 3 institutions as the recipients of Christian religious donations, 1 institution as the recipient of Catholic religious donations, 6 institutions that manage Buddhist socio-religious funds, and 1 institution as the recipient of Hindu religious donations.
The number of LAZ on the national scale has increased from 28 to 30. The number of provincial-scale LAZ has also risen from 17 to 21, while regency/municipal-scale LAZ has increased from 29 to 30. The number of institutions managing Buddhist socio-religious funds has also increased from 5 institutions to 6 institutions. The complete list of institutions stipulated as the recipients of amil zakat or religious donations is outlined in the Annex of PER-08/2021.