MALAYSIA - CAPITAL MARKETS - Malaysia tax breaks spur sukuk rally

www.btimes.com.my - Malaysia’s efforts to become a global hub for Islamic finance by offering tax breaks is driving a record rally in foreign-currency sukuk, and arrangers say interest is increasing among local issuers.

Standard Chartered Plc is in talks with about five companies to manage deals amounting to at least $1 billion, Leon Koay, the Kuala Lumpur-based head of global markets, said in a May 15 interview. The Bloomberg Malaysian Sukuk Ex-MYR Index, which includes notes of Khazanah National Bhd., is rising for a sixth quarter and has gained 9 percent since December 2010. (source)

AUSTRALIA - FINANCE - Australia's NSW revives Islamic finance push

www.reuters.com - May 13 (Reuters) - The government of the Australian state of New South Wales, home to the country's financial capital Sydney, will send a group to Dubai this week to discuss ways to develop the Islamic finance industry, officials said.
The delegation, led by New South Wales premier Barry O'Farrell and including financial services professionals, will explore regulatory and legal issues at a roundtable discussion with the Dubai Export Development Corp on Tuesday.  (source)

INDONESIA - SURVEY - tax deduction of Zakat contributions

Dengan adanya PP No.60/2010, diharapkan semakin banyaknya Muslim yang membayar zakat karena ada insentif untuk mengurangi penghasilan kena pajak. Namun hal ini perlu dilihat efektivitasnya. Oleh karena itu,
diperlukan kajian/riset tentang hal ini. Tujuan Survei (ini adalah untuk melihat respon masyarakat atas PP No. 60/2010 atas zakat harta/maal sebagai pengurang penghasilan kena pajak. Survei ini ditujukan hanya untuk
Muslim Indonesia. Terima kasih.

http://www.surveygizmo.com/s3/895937/SURVEI-RESPON-EFEKTIVITAS-PP-No-60-2010-TERHADAP-WAJIB-PAJAK

With the PP No.60/2010, it is expected that the increasing number of Muslim pay zakat because there is no incentive to reduce taxable income taxes. However, this needs to be effective. Therefore, the required studies / research on this subject. The survey objectives (this is to see the public response on the PP. 60/2010 on charity treasure / maal as a deduction from taxable income. The survey was intended only to Muslim Indonesia. Thank you.

For a good understanding is hereunder the regulation as discussed 2010 PP no 60 zakah

INDONESIA - REGULATIONS - The treatment of Islamic banks was still differen

www.bisnis.com - JAKARTA: For the sake of fighting for the same tax equity with conventional, Indonesia Sharia Bank Association formed a task force whose function is requesting changes to Regulation 136 of the Minister of Finance that the current numbers are still multi-valued interpretation.
Achmad Kusna Permana, Head of Sharia Bank Permata Tbk PT as a member of the Association of Bank Indonesia Sharia (Asbisindo), said the association had a meeting with the Ministry of Finance of fiscal policy, to discuss the Ministry of Finance (PMK) No. 136/PMK.03/2011 about Income Tax for Business Activities Financing the Sharia.  (source)

INDONESIA - REGULATIONS - Sharia financing imposed with same tax as conventional

JAKARTA: The government affirms the taxation for sharia financing to match with the regulation for conventional one.

As stated in Finance Minister Regulation No. 137/PMK.03/2011, leasing based on Islamic principles (ijarah and ijarah muntahiyah bittamlik) will be imposed with tax the same as operating lease and financial lease.  (source)

INDONESIA - BANKING - Muamalat's profit increases 62%

JAKARTA: PT Bank Muamalat Indonesia Tbk made profit before tax of IDR374 billion in 2011, or increased by 61.85% compared to the previous year.

Director of Bank Muamalat Andi Buchari said the increase in earnings ratio is affected by the better corporate efficiency and financing business development.  (source)

INDONESIA - REGULATIONS - Sharia Banks Still Need Tax Incentives

REPUBLIKA.CO.ID, JAKARTA - Islamic banks still need tax incentives sector. Elimination of double taxation on Islamic bank financing products considered not enough to encourage the growth of Islamic financial services industry.

Ministry of Finance has issued rules earlier that equate the imposition of income tax and Ijarah Ijarah financing Muntahiyah Bittamlik (IMBT) with a conventional bank loan products. The imposition of these taxes will remove double taxation that previously imposed for any rental activity. Elimination of double taxation is assessed Islamic economists, Veitzhal Rifai, only a small part of efforts to improve the economy of the Islamic banking sector. (source)

INDONESIA - REGULATIONS - Government Issue 2 Sharia Tax Rules

Jakarta (16 / 2) The Government has issued two regulations governing the imposition of income tax on business activities of Islamic finance and Islamic banking activities.
Rudaedi Smith, Director of Counseling Services and Public Relations Directorate General of Taxation Ministry of Finance, in a press statement on Monday (01.16.12) says the first rule is published 136/PMK.03/2011 Regulation of the Minister of Finance Number of Income Tax for Financing Activities Sharia.  (source)

INDONESIA - REGULATIONS - BKF: Islamic Banking please report about double taxation on Leasing / Ijara IMBT

JAKARTA: Fiscal Policy Office Ministry of Finance stated until now has not received an official statement about the practice of Islamic banking in the double tax agreement leasing
The agency requested that Bank Indonesia or sharia banking association to complain formally if it still happens double taxation.
"Frankly, until now we have not received a letter or an official complaint that it [double taxation] happened, and what harm their arguments that it is double taxation," said Head of the Fiscal Policy Bambang Brodjonegoro, today.  (source)

INDONESIA - TAX REGULATION - Tax Office Examines 12 Banks

Theindonesiatoday.com - Director General for Taxation examines tax issues of about twelve banks. Some have been completed and filed objections.

Herwidayatmo, head of law and governance of National banking Association (Perbanas), reveals that the examination is mainly because of difference in interpretation between banks and tax office. (source)

AUSTRALIA - TAX - A Super IF opportunity: Shari'ah-based superannuation is there for the taking

Australia unveiled its new annual budget amidst a soaring currency and rising prices. Of significance to the Islamic finance market is the submission of the final report that recently went to the Board of Taxation to help create the IF an equal footing, tax wise, with conventional banking, creating an infrastructure that does not penalise in any way Shari'ah-compliant institutions or products.  (source)

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)

FINANCE - TAX - Indonesia Studying Tax Incentives for Islamic Finance

Oct. 20 (Bloomberg) -- Indonesia, the world’s most populous Muslim nation, is studying ways to make tax laws more conducive to developing Islamic finance, Mulya Siregar, director of Shariah banking at the central bank, said in Jakarta.

“Experience in countries which have successfully developed Shariah banking shows that tax incentives are very helpful in expanding the industry,” he told reporters. The study may be completed by the end of this year, said Siregar, declining to provide more details.

FINANCE - OPINION - Toward a tax rebate of ‘zakat’

Muhammad Akhyar Adnan

After being silent for a long time, the issue of zakat (alms) has sparked a heated debate once again. Kompas published two short articles about it on Aug. 27, 2010.

The first was about the efforts of Irfan Syauqi Beik, who represents the Department of Sharia in the Faculty of Islamic Economic Studies at the Bogor Institute of Agriculture (IPB), to amend the existing 1999 Zakat Law, so that the zakat paid can be considered as a rebate on an individual’s tax liability.