Tax treatment

Key Principles of 
Islamic Finance
Belief in divine 
guidance
2
No interest can
be charged
3
No 
haram
 
investments
1
Financing is 
based on real 
assets
4
Risk sharing is 
encouraged
5
These principles can be viewed as activities that are prohibited and those which are encouraged.
Riba
(interest)
Gharar
(uncertainty)
Maysir
(gambling)
In certain circumstances, it may be similar 
to conventional financial products but the 
fundamental principles remain different. For 
instance, every Shariah-compliant financial 
transaction is not based on usury (interest), 
must be supported by an underlying 
economic activity and cannot be linked 
with elements that are considered as threats 
to the moral of a society such as gambling, 
liquor and arms trades.

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