Institutionalization of zakat and integrating in the Turkish tax system

Although studies on the position of zakat in tax systems have increased in recent years, few studies have been discussed this topic in Türkiye. There are several points of similarity between the expenditure items of zakat and transfer expenditures. The research is about the institutionalization of zakat in Türkiye, the tax advantage/advantages that can be provided for zakat payments and the potential of zakat. Qualitative method and semi-structured interview method was preferred in the research. For this directin, interviews were held with 22 people who give zakat and taxpayer of income tax. In the study, research was conducted on how people define zakat, the methods they use while giving zakat, their perspectives on the definition of zakat in the Turkish tax system and its institutionalization, their thoughts on the tax advantages that can be provided for zakat, the potential of zakat in Türkiye and the effect of this potential on poverty. 14 of the participants consider it necessary to institutionalize zakat. All participants support for institutional trust and transparency. 13 out of 22 people explained institutionalization by the state, and 10 explained the improvement of a different system in state institutions. 5 of the participants stated that institutionalization should be achieved. 12 participants stated that they wanted zakat to be defined in the Turkish tax system, but they were hesitant about providing tax advantages; eight participants emphasized that tax advantages should be provided. As a result of the institutionalization of the intelligence of all participants, the decreasing effect of property in Türkiye is clearly seen. Another important contribution of the study to the literature is that using the method of Tabakoğlu & Turan (2017)'s calculation for 2015 based on GDP for calculation between 2004-2022 zakat potential. According to this calculation, it was determined that the calculated zakat potential was between 1.7% and 3% of GDP.