The Islamic finance industry, although still a relatively young industry, has transformed into a sizeable alternative financial management system. Muslim countries want Islamic finance to be part of the global financial system and are keen for these types of funds to be available worldwide. Ireland has made important improvements to facilitate Islamic finance transactions in Ireland over the past number of years. As a result, many organisations recognise Ireland as a place from which to facilitate their Islamic finance needs and as a gateway to Europe.
PwC audits 75% of Islamic funds in Ireland
Key milestones for Islamic finance in Ireland include:
- The Irish government has highlighted Islamic finance as key opportunity for growth
- Tax neutrality exists between conventional finance and Islamic finance
- Tax treatment of Islamic Financial Transactions has been developed for a number of Islamic finance products including Sukuk, Ijarah, Murabahah, Takeful
- Network of double taxation agreements exist between Ireland the Gulf Cooperation Countries and the Far East
- A recognised academic diploma in Islamic finance has been created by Chartered Institute of Management Accountants (CIMA)
- A number of large fund promoters have set up Islamic funds in Ireland or are serviced in Ireland
- Ireland has signed a number of Memorandum Of Understandings (MoUs) with a number of Middle Eastern Regulators including Emirates Securities and Commodities Authority (the “SCA”), the Securities Commission Malaysia (SC) and Central Bank of Bahrain
How can we help?
Due to expansion of this industry and the demand for Islamic finance products, PwC Ireland has developed a dedicated Islamic finance group. The group offers advice and support regarding the structure, taxation, accountancy, regulation and implementation of your Islamic finance product.