Zakat Act comes into effect

On January 1, the Zakat Act came into effect for the first time in Maldives. 

The Zakat Act was passed in parliament on December 3, 2025 and was ratified by the President on December 6. As per the Act, it comes into effect from January 1 onwards. 

With the law coming into effect yesterday, President Dr Mohamed Muizzu re-established the Zakat House, this time under the oversight of the Ministry of Islamic Affairs. 

The government states that the Zakat Act aims to regulate zakat payments, collection, and distribution within a legal framework to ensure its objectives under Islamic jurisprudence are fully realized. 

With the new Act coming into force, policies on Zakat collection and distribution will now be formed by the President, on the advice of the Islamic minister. 

The minister's responsibilities include publicizing zakat policies, and providing necessary advice and instructions regarding the policies to enforcement authorities.

As per the bill, Zakat must be paid by a person residing in Maldives whether their goods are in-country or not, and by citizens who reside outside of Maldives if their property is stored in-country.

The President is also required to set up a Zakat Council within two months of the Act coming into effect. The Zakat Council will oversee the zakat system and provide advice to the minister and Zakat House, as well as monitor zakat transactions. 

The council is to have an employee from a senior position at the Maldives Monetary Authority (MMA) decided by them, the Islamic Minister and Director General.

The council is to also have an employee from the National Center for the Holy Quran, a senior employee from the Ministry of Finance and Planning, an employee from the Supreme Council for Fatwa, an employee from the Ministry of Islamic Affairs and two Zakat experts who do not hold government positions and to be appointed by the President.

The Act also calls for the establishment of a Shariah Advisory Committee. This committee's work is assigned to the Zakat House, with the Act also outlining how the Zakat Fund will be conducted and areas it can be used on. 

The bill also states that if Zakat funds are given to those who are not eligible to receive Zakat or if Zakat funds are used to invest in something that is not permitted, a fine between MVR 1,000 and MVR 10,000 can be incurred.