In Malaysia, though Islam is the official religion, The Federal Government does not have the fullest authority in religious affairs.Zakat is the responsibility of the Islamic Council of each state in the country There are 14 Islamic Councils, one for each of the 13 states and one for the Federal Territory Wilayah Persekutuan of Kuala Lumpur. Each state has its own religious Administration Enactment while the Federal Territory has its own Act to manage zakat.

The Islamic Councils have a unique status in that they are not a part of the Federal or State Government However, they have been established either through Federal or State legislation. They also depend on the Islamic Religious Department which is a government department existing in each state to provide the administrative services and to implement the decisions of the Council. The Council is mainly a policy-making and supervisory body. Each Council is report to the Sultan or Ruler of each State The National Council for Islamic Affairs acts as a coordinator between the various state Islamic Councils especially when it concerns Islamic matters that effect the whole country.

Since its inception the PPZ has experienced many changes and improvements in its administration by passing bureaucratic procedures and a customer oriented approach as well as a pro-active approach in tackling customers complaints. PPZ was officially open by the Honourable Prime Minister of Malaysia, Tun Dr. Mahathir Muhamed On 8th March 1991 by being the first zakat office to operate in a new corporate style.