In Malaysia, any amount paid for religious duty, which includes zakat al-mal (on wealth) and zakat al-fitr (charity), is given rebate as actual amount paid. This is as per the Section 6A (3) of the Income Tax Act (ITA), 1967 of Malaysia.
Zakat paid in year 2014 can be claimed as tax rebate in the year of assessment (YA) 2014.
Rebate is a deduction from income tax payable.
Anyway, the rebate is only up to the amount of actual tax payable.
If the Zakat paid less than the tax payable then the balance must be paid to IRB.
For instance, if an individual's tax payable is RM3,000 and he paid zakat for that YA for RM2,500 then his net tax payable would be RM500. If the zakat paid more than the tax payable then the difference cannot be claimed from IRB.
For instance, if an individual's tax payable is RM3,000 and he paid zakat for that YA for RM4,000, the difference of RM1,000 cannot be claimed from IRB and the tax payable is NIL for that YA.