DOHA: Taxation of Sharia’ah compliant financial products and transactions was the main topic examined by a distinguished group of experts meeting in Doha.
Among the subjects discussed were the Qatar Financial Centre Authority’s (QFC Authority) taxation of Islamic transactions research project and how Islamic finance transactions are structured in practice, QFC Authority said in a press statement Monday.
The seminar was held under the auspices of the GCC branch of the International Fiscal Association (IFA).
It is the second successive year in which the QFC Authority has hosted a meeting of the branch in Doha.
The seminar also shed light on the growth potential for Islamic finance in the region, and provided a clear explanation of why Sharia’ah compliant products were important.
The keynote speaker, Mohammed Amin an Islamic finance consultant, discussed the research he conducted earlier in the year on the cross-border taxation of Islamic finance in the MENA region which was sponsored and supported by the QFC Authority.
The impetus behind the research, for which Malaysia and the United Kingdom were comparators, was to suggest tax policies for countries wishing to develop a supportive tax regime for Islamic finance.
"There’s very little legislation for Islamic finance. Countries are at very different stages of development.
For example, of the countries which responded to our study enquiries, only Turkey and the Qatar Financial Centre have specific rules for Sukuk," he observed.
Another speaker, Moshin Iqbal from Latham and Watkins, described in detail some real transactions in the GCC region, and identified pitfalls for the unwary investor.
He commented: "A comprehensive legal structure is essential in any jurisdiction to ensure that Sharia’ah finance is successful."
Ian Anderson, CFO and Director of Tax, QFC Authority chaired the meeting, which was attended by tax experts across the GCC, lawyers, accountants, bankers and representatives from the Ministry of Finance.
Providing a world-class tax regime is central to the QFC Authority’s strategy as a prominent regional financial center.
The IFA is the leading non-governmental organization dealing with tax and related policy matters.
The community of tax professionals in Qatar and the region has grown considerably in recent years.
Anderson said that Islamic finance is growing rapidly in many parts of the world, not least in the Gulf.
"Improving the understanding of taxation of Islamic finance is therefore increasingly important and our seminar took significant steps in that direction."
The QFC Authority is the commercial, administrative and legislative body responsible for leading the expansion of Qatar’s financial services sector.
Providing a uniquely sustainable platform for regional growth in reinsurance, captive insurance and asset management. (QNA)
