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The Impact of Zakat on the Cash Flow in the Kingdom of Saudi Arabia: A Comparative Study أثر نظام الزكاة والضريبة في المملكة العربية السعودية على حجم التدفق النقدي : دراسة مقارنة

Author

Listed:
  • YASEEN JEFREY

    (Assistant Professor, Department of Business Administration Faculty of Economics and Administration King Abdulaziz University, Jeddah, Saudi Arabia)

  • GHAZI MADANI

    (Professor, Department of Business Administration Faculty of Economics and Administration King Abdulaziz University, Jeddah, Saudi Arabia)

  • ABDURRAHMAN BASHAIKH

    (Assistant Professor, Department of Business Administration Faculty of Economics and Administration King Abdulaziz University, Jeddah, Saudi Arabia)

Abstract

Cash flow is a major and critical input in the capital budgeting decision of private firms. Cash flow has been analyzed under taxes and inflation. However, zakat has never been analyzed. Zakat has different base and rates compared to other systems, therefore, it requires an intensive analysis. This study analyses and compares the impact of zakat with that of Saudi and American tax systems. Two models were developed, and an empirical analysis was performed. The results support the hypothesis of a lesser impact for zakat. Under equal discount rates and initial investments, zakat tends to accept more projects than the other two tax systems. يلعب النظام الضريبي المستخدم في كل دول العالم دورًا رئيسًا في التأثير على حجم التدفق النقدي في المنشآت الاقتصادية بالزيادة أو النقصان، وبالتالي على قبول أو رفض المشاريع الاستثمارية الجديدة في حالة ثبات العوامل الأخرى. والزكاة بصفتها نظامًا يطبق على الشركات والمنشآت السعودية، لم يسبق تحليل أثرها مقارنة بالنظم الوضعية، حيث تختلف الزكاة عن الضريبة من حيث وعاؤها وسعرها. ويسعى هذا البحث إلى المقارنة بين أثر الزكاة من جهة، ونظام الضريبة السعودي والأمريكي من جهة أخرى. لذلك تم تطوير نموذج رياضي واستخدامه على عينة من الشركات السعودية. وتوضح نتائج البحث أن أثر الزكاة على التدفق النقدي يختلف عنه في النظام الضريبي السعودي والأمريكي، حيث وجد أن نظام الزكاة يساعد على قبول المشاريع أكثر من النظامين المذكورين، عند ثبات العوامل الأخرى.

Suggested Citation

  • Yaseen Jefrey & Ghazi Madani & Abdurrahman Bashaikh, 1991. "The Impact of Zakat on the Cash Flow in the Kingdom of Saudi Arabia: A Comparative Study أثر نظام الزكاة والضريبة في المملكة العربية السعودية على حجم التدفق النقدي : دراسة مقارنة," Journal of King Abdulaziz University: Islamic Economics, King Abdulaziz University, Islamic Economics Institute., vol. 3(1), pages 3-22, February.
    • Handle: RePEc:abd:kauiea:v:3:y:1991:i:1:no:8:p:3-22
    DOI: 10.4197/islec.3-1.8
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