Revenue Jersey has issued a Statement of Practice confirming the tax free status of typical Sharia compliant funding structures.
The Jersey tax authority’s aim is to provide tax certainty for typical Sharia compliant financing structures and to further emphasise that Jersey is “open for business” for Sharia investment and financing structures.
The statement confirmed that financing structures materially in the form of an illustrative Tawwarruq/Murabaha structure will not be within the scope of certain Jersey Income Tax legislation and are therefore non-taxable.
A range of other requirements must also be ...