Whether any regulatory relaxations have been offered by home country in respect of Islamic banking operations?
Regulatory relaxations offered in many countries in which Islamic banks or windows operate include the following; Treating the income earned by Islamic investment accounts for tax purposes on par with interest earned by bank fixed deposits for tax purposes. Treating income earned by mudarabahs , ijarahs , etc. in which participation account funds are invested, on par with interest earned by banks on loans in conventional operations. In the case of mudarabahs in which participation funds are invested, allowing partial or full drawback of commercial taxes on purchase of goods (sales tax etc.) on completion of resale of the items to the customer and full incidence of tax at that level. A drawback of stamp duty to be allowed for interim ownership of fixed assets (house/vehicle) on submitting proof of onward transmission of ownership of asset to ultimate customer and payment of full stamp duty on the latter transaction. Exemption of Islamic banking participation (deposit) accounts but not a
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