SARS Tax rebate on donations

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Many organisation as your madrasah grant Section 18A certificates which can be used to reduce ones tax liability with the South African Revenue Services (SARS) and accordingly one would get a refund from SARS. Is it permissible to use this money considering that one is receiving a benefit for Zakaat distributed or should this money be distributed to charity.

Answer

In the Name of Allāh, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykumwa-rahmatullāhwa-barakātuh.

Respected brother/ sister in Islam

The rebate received on donations from SARS is permissible and does not affect the Zakaat from being discharged. The rebate or refund is a tax incentive and will have no bearing on the sharia aspects of Zakaat or Lillah contributions being discharged.

And Allah Knows Best

Darul Iftaa

Madrasah Inaamiyya