Tax treatment

Technical Release i-1 (TR i-1) “Accounting for Zakat on Business”
: when an entity pays zakat 
on business, TR i-1 requires it to be recognised as an expense of the entity. This is to differentiate 
between zakat paid by an entity in its own legal capacity and zakat paid on behalf of its 
shareholders.
• 
Technical Release i-2 (TR i-2) “Ijarah”
: TR i-2 confers a lessee with the right to use an asset while 
ownership of the underlying assets remains with the lessor.
• 
Technical Release i-3 (TR i-3) “Presentation of Financial Statements of Islamic Financial 
Institutions”
: TR i-3 mainly concerns presentation of information relating to contracts used by 
Islamic financial institutions.
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