OPERATIONALIZING A DORMANT MANDATE: LEGAL, ECONOMIC, AND GOVERNANCE PATHWAYS TOWARD A ZAKAT-BASED TAX CREDIT POLICY IN ACEH, INDONESIA
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2026-09-28Downloads
Abstract
Aceh occupies a unique constitutional position in Indonesia as the only province mandated to implement elements of Islamic law within a modern fiscal framework. Article 192 of Law Number 11 of 2006 concerning the Governing of Aceh (UUPA) explicitly stipulates that zakat paid by a taxpayer functions as a direct reduction of income tax payable—a tax credit mechanism—rather than merely a deduction from taxable income, as regulated nationally under Law Number 23 of 2011 concerning Zakat Management. Despite this explicit constitutional mandate, the provision has remained largely unimplemented for nearly two decades. This study employs a mixed-method approach combining normative-juridical legal analysis, illustrative economic simulation, and policy analysis—incorporating Zakat Digital Accounting as a key institutional variable—to examine why this implementation gap persists and how it may be resolved. The findings indicate that the primary obstacle is not the absence of legal basis, but the absence of technical implementing regulations that bridge Aceh's special autonomy with Indonesia's unified national tax administration system (Coretax), compounded by limited institutional capacity within Baitul Mal to digitize its zakat accounting and issue verifiable proof-of-payment documents. Illustrative economic simulation demonstrates that the tax credit mechanism yields financial benefits up to three to four times greater than the deduction mechanism for both individual and corporate taxpayers, an incentive that could substantially increase formal zakat compliance if implemented alongside adequate anti-fraud governance and a mature Zakat Digital Accounting infrastructure. The study recommends two parallel policy pathways: accelerating a Government Regulation that explicitly accommodates Aceh's special status, and establishing an interim Memorandum of Understanding among the Aceh Government, the Ministry of Finance, and Baitul Mal Aceh, supported by a four-phase implementation roadmap, prioritized Zakat Digital Accounting standardization, and a permanent joint oversight committee.
Keywords:
Zakat Tax Credit Zakat Digital Accounting Islamic Fiscal Policy Special Autonomy AcehReferences
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