Tax treatment

11
Tax Treatment on
Islamic Finance 
in Malaysia
 
However, in order to facilitate its constituents’ application of MFRS to Islamic financial transactions, 
the MASB has issued a series of Technical Releases or Islamic accounting pronouncements, which 
complement, and is to be read in conjunction with the MFRS.
To date, the MASB has issued four (4) Technical Releases as guidance as follows:
•
Statement of Principles i-1 (SOP i-1) “Financial Reporting from an Islamic Perspective”
: SOP 
i-1 serves to inform that MASB approved accounting standards shall apply to Islamic financial 
transactions, unless there is a Shariah prohibition. 
•