WHAT INFLUENCE ENTREPRENUER TO PAY ISLAMIC TAX (ZAKAT)?

This study was carried out to examine the determining factors of knowledge, selfefficacy, service quality and frequency of interaction between staff of Zakat institution and Entreprenuer (Zakat payers) on Zakat on business income compliance behaviour. A survey questionnaire was administered to 700 respondents out of which 227 usable questionnaires were used for analysis purposes. The measure of the adequacy of the sample, Kaiser-MeyerOlkin (KMO) and internal consistency using Cronbach Alpha value was applied to assess the validity and reliability of the variables. For the purposes of hypothesis testing, multiple regression analysis was performed. Findings revealed that knowledge, self-efficacy and frequency of interaction influenced compliance behaviour of Zakat on business income. Based on the findings, it can be concluded that any strategy to be implemented by the authorised institutions to improve the collection of Zakat in the near future should focus on increasing Entreprenuer’s knowledge and self-confidence as well as increasing the number of interactions between staff and entreprenuer.