Tax exemption for ..... consecutive years given to Islamic banks from payment of income tax in relation to sources of income derived from its overseas branch or investee company.

TAXES

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Tax exemption for ____ consecutive years given to Islamic banks from payment of income tax in relation to sources of income derived from its overseas branch or investee company.

A	Ten
B	Five
C	Four
D	None of the above

Explanation:

Detailed explanation-1: -Section 28(1) of IFSA 2013 states that one of the duties of an IFI is to “ensure that its aims and operations, businesses, affairs and activities are in compliance with Sharīʿah”.

Detailed explanation-2: -Its main objectives are to promote financial stability and compliance to Shariah and further strengthen the regulation of Islamic financial institutions. By this, the IFSA 2013 aims to strengthen consumer protection and further increase the confidence of the public in Takaful.

Detailed explanation-3: -Some of the modes of Islamic banking/finance include Mudarabah (profit-sharing and loss-bearing), Wadiah (safekeeping), Musharaka (joint venture), Murabahah (cost-plus), and Ijara (leasing).

Detailed explanation-4: -Pioneer Status (PS) is an incentive in the form of tax exemption, which is granted to companies participating in promoted activities or producing promoted products, for a period of 5 or 10 years. The alternative to the PS incentive is usually investment tax allowance (ITA).

There is 1 question to complete.

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TAXES