Corporate zakat is the zakat that is paid by a company on behalf of Muslim shareholders from Shariah-compliant business activities and/or Shariah-compliant assets.

Zakat is obligatory for Muslim-owned company and/or company with Muslim shareholders, if the requirements of nisab (minimum threshold of wealth for zakat)* and haul (complete one Hijri year) are met.

* This threshold is annually determined by Zakat authorities. If the payment is made based on the Masihi year, the rate will be adjusted accordingly to reflect the additional days.

The calculation method of Corporate Zakat may be referred to Zakat authorities and the company may pay zakat directly to Zakat collection authority in their respective states as follow:

List of Zakat authorities in Malaysia:

• Wilayah Persekutuan: http://www.zakat.com.my
• Selangor: http://www.zakatselangor.com.my
• Perlis: https://www.maips.gov.my
• Kedah: https://www.zakatkedah.com.my
• Penang: https://zakatpenang2u.com
• Perak: https://www.maiamp.gov.my
• Negeri Sembilan: https://www.zakatns2u.biz
• Melaka: http://www.izakat.com
• Johor: https://www.maij.gov.my
• Pahang: http://www.zakatpahang.my
• Terengganu: https://ezakat.maidam.gov.my
• Kelantan: https://www.e-maik.my
• Sarawak: https://www.tbs.org.my
• Sabah: https://appszakat.sabah.gov.my

Companies may pay zakat to the zakat collection center in the state where the companies headquarter is operating. However, the companies may also allocate zakat payments to other states where they have business operations.

• The company may receive the Zakat Wakalah which allows the company to self-distribute directly to Asnaf on behalf of zakat authorities. The percentage of the Zakat Wakalah may be referred to respective Zakat authorities.
• Zakat payments made by companies can be deductible from business income tax up to 2.5% of the company's aggregate income. This incentive encourages companies to fulfil their zakat obligations.

If the company has paid Corporate Zakat, the Muslim investor is not required to pay zakat on the dividend received.