Business zakat is a critical pillar of the Islamic socio-economic system, functioning as a mechanism for wealth redistribution, poverty alleviation, and social welfare enhancement. Despite steady growth in total zakat collection in Malaysia, business zakat remains underrepresented, particularly among sole proprietors with substantial economic potential. This study extends the Entrepreneurial Event Model (EEM) by adding zakat-related knowledge as a fourth antecedent, alongside perceived desirability, perceived feasibility, and propensity to act, to explain business zakat payment behaviour among Muslim sole proprietors in Kedah. Using a quantitative cross-sectional design, the study collected data via structured questionnaires from registered Muslim sole proprietors and analysed them using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that perceived desirability, perceived feasibility, propensity to act, and knowledge significantly influence intention to pay business zakat, and that intention, in turn, significantly predicts actual payment behaviour. Intention mediates the relationship between all four antecedents and business zakat behaviour, with substantial explanatory power (R² for intention = 0.808; R² for behaviour = 0.734). The study contributes theoretically by extending EEM into a religious fiscal compliance context and practically by offering evidence-based insights for zakat institutions to design targeted interventions that enhance compliance among Muslim entrepreneurs.
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