Singapore’s Ministry of Finance is preparing to issue new income tax regulations for Islamic finance, reports Tax-News.com.
According to Tax-News.com, the Singapore government has identified three areas where the country can offer its services as a financial centre to support the growth of Islamic finance - namely in wholesale banking services, asset management and capital markets.
Singapore will provide additional clarification and detailed explanation of the income tax treatment of further defined Islamic financing arrangements, including financing through a partnership arrangement, project finance and the interbank placement of funds, adds Tax-News.com
“This is in keeping with our long-standing principle that Shariah-compliant products should not be disadvantaged in terms of regulatory and tax treatment where the economic substance and risks are similar to conventional products. We hope that this will expedite the development of more such financial products in Singapore,” says Deputy Chairman of the Monetary Authority of Singapore (MAS), and Minister for Trade and Industry, Lim Hng Kiang.
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