Thursday, June 09, 2011

SINGAPORE - New tax rules for Islamic finance

The Government will issue new income tax rules for Islamic finance products, said deputy chairman of the Monetary Authority of Singapore Mr Lim Hng Kiang.


The new regulations, to be issued by the Ministry of Finance, will cover financing agreements based on financing through partnership agreement, project financing and the interbank placement of funds, Mr Lim said.

This is so that syariah-compliant products are not at a disadvantage compared with conventional products in terms of tax treatment, in order to encourage more such products in Singapore.(source)


Mr Lim, also Minister for Trade and Industry, was speaking at the Second World Islamic Banking Conference Asia Summit at Pan Pacific Hotel.

He also identified three challenges for Islamic finance: the standardisation and harmonisation of standards, strengthening of legal and regulatory regimes, and the supply of Islamic finance-conversant professionals in finance and accounting. 

Source : http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_677503.html - June 8, 2011

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