 For example, suppose a person earning RM 50,000 owes a tax of RM 3,000 and donates RM 1,000 to zakat, the whole of the RM 1,000 is directly deducted from the RM 3,000, whereas donations to other approved beneficiary would permit only a deduction of the RM 1,000 against the RM 50,000.The former being a tax credit and the latter being a tax deduction.Zakat (or tithe) monies, however, are paid by Muslims directly to official organisations run by state governments.