Tax treatment

15
Tax Treatment on
Islamic Finance 
in Malaysia
 
The Malaysian 
Government has taken 
up various steps and 
initiatives to facilitate the 
transition of Malaysia to 
become an international 
Islamic 
hub; 
well 
supported with a vibrant 
and comprehensive 
Islamic financial system 
that includes major 
international and 
domestic 
financial 
institutions.
For instance, the 
establishment of the 
Malaysia International 
Islamic Financial Centre 
(MIFC) in year 2006 was 
aimed at promoting 
Malaysia as a key global 
player in Islamic finance 
which offers extensive 
knowledge and practical 
experience in Islamic 
finance. Besides MIFC, the 
establishment of Islamic 
Government’s Initiatives towards Islamic 
Finance
Financial Services Board (IFSB) provides guidance that is intended to promote global prudential 
standards and guiding principles for the Islamic banking and insurance industry and capital markets.
The International Centre for Education in Islamic Finance (INCEIF) was set up with the main objectives 
of making Malaysia the leading centre for Islamic finance education and developing human capital 
for the global Islamic finance industry.
In addition, the International Shariah Research Academy for Islamic Finance (ISRA) was established 
in year 2008 to promote applied research in the areas of Shariah and Islamic finance. 

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