An analysis of the taxation of Islamic financial products in Malta

Abstract

Purpose: The purpose of this study is to analyse how Islamic financial products would be effected by the present Maltese tax legislation had this type of finance be introduced and conducted in Malta and whether they would be put into a disadvantage as compared to conventional finance transactions. Design: The objective of this study was achieved through a number of case studies and supplemented by other Maltese legislation, books, journals and websites. Findings: From the results achieved during the study, it can be concluded that the Islamic Financial products analysed in this dissertation will be negatively affected by the Maltese tax legislation. Value: It is hoped that this study will encourage authorities in Malta to change the Maltese tax legislation so as to provide a level playing field for Islamic Finance products. This is important in attracting increased investment.