Jizya & Zakat: The Surprising Fiscal Systems of Islamic States and the "Tax Haven" Myth

Historical Islamic states developed sophisticated fiscal systems that were integral to their governance and societal structure. Among the most fundamental components of this system were Jizya and Zakat, two distinct forms of taxation with profound religious, economic, and social implications. While both contributed to the public treasury, known as the Bayt al-Mal, their purposes, obligations, and the authority exercised by Muslim rulers over them differed significantly. This report delves into these distinctions, examining the compulsory nature and severe consequences of Zakat non-payment, and evaluating the proposition that the Islamic taxation system, coupled with specific economic freedoms granted to non-Muslim subjects, might have rendered Islamic lands economically attractive—a "tax haven"—for religious minorities residing in neighboring empires such as the Byzantine and Sasanian.