Tax treatment

parties.
Ijarah Thumma Al Bai’
(also called 
Ijarah 
WaIqtina
)
An Ijarah contract with an undertaking by the lessor to sell the Ijarah 
item to the lessee and/or an undertaking by the lessee to purchase 
the Ijarah item by, or at the end of the Ijarah period.
[Ijarah= lease; thumma= then; al Bai’= a sale]
Ijarah Muntahia 
Bittamleek
(Financial 
Leases)
An Ijarah or equivalent to a hire–purchase contract accompanied 
with an arrangement to transfer the Ijarah item from the lessor to 
the lessee through either a gift or a sale by, at the end of the Ijarah 
period.
[Ijarah means lease; muntahia refers to as ending whereas Bittamleek 
means with ownership]

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