Assalamualaikum,I have pay 29% of my salary to the income tax department. As we all know, my Zakat obligation is only 2.5%. if I pay the 2.5% Zakat then my income tax is 26.5%. if I allocate all the 29% to Zakat then I don't have to pay the income tax. This is what I am doing now, and the annual amount is approximately 10,000 USD, which much more than all the types of Zakat that I have to pay. My question is,1. this 29% is the amount that I do not get anyway, because if I don't pay the zakat, it will go to the government. Is it valid to channel it as zakat?2. I also have some investments which require me to pay the Zakat annually. however the 10000 USD, more than covers the amount that I need to pay. do I still need to pay zakat for the other investments after it's "haul"? tq and wassalam.

All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad is His slave and Messenger.

Taxes that are imposed and collected by governments are of two kinds: (1) just taxes and (2) unjust taxes. So, if those taxes are imposed justly, then it is our duty to pay them since such an action constitutes a form of general welfare and an aid to one's country. But, if those taxes are imposed unjustly, then one should not pay them if one can avoid doing so.

Therefore, if your government imposes taxes justly, you have to pay your Zakaah for the sake of Allah, and then, pay the remainder (26.5 as you mentioned in the question) to tax collectors. But, if taxes are collected unjustly in your country, it will be better to pay your Zakaah, and then, to distribute the remainder as charity and good deeds. This last choice will be more beneficial to the poor.

Two conditions must be met to make those taxes that are collected justly as lawful action:

1- Money of Public Treasury must be used up.

2- Taxes should be used on behalf of the community, such as building schools, hospitals, paving roads and so on. Then, it is forbidden for some government to impose and collect any tax as long as there is money in its exchequer that meets public interests to impose and collect taxes without rendering needed services for the common good.

For more benefit on paying or evading taxes, please refer to Fataawa 212143, 203644, 85356, 91173, 84560, 89947, 129786, 196021, and 316597.

Allah knows best.