Taxation Of Sukuk In Turkey: As An Alternative Financial Product

Abstract

The markets such as capital markets, financial markets, commodity markets, it creates a domino effect and creates a great impact on the economy. After giving information about the improvement of Islamic finance in Turkey, it describes the kinds of sukuk being implemented in Turkey. As a core study, taxation of sukuk in Turkey and sukuk in Turkish tax system are examined specifically. The objective of this paper is to explain the tax advantages and disadvantages on the products offered by the system to those who want to invest in the alternative finance system or evaluate their savings. In this study, Turkish tax laws were used as the primary source, and the books, theses, articles and conference texts written on this subject were used as the secondary source. This study includes the review of the written works, statistics, documents, laws, practices and works of related international institutions, and open sources of related national institutions. Finally, in this study, recommendations for the necessary regulations for the growth of the Islamic finance sector in Turkey and the results obtained from the study are given.

Identification of Research Trends in Islamic Financial Product Innovation

“…Despite these obstacles, Islamic financial product innovation continues to evolve based on the interpretation of Islamic jurisprudence (al-Ijtihad), drawing upon the Quran, Sunna, and classical Islamic legal theory. Examples of innovative Islamic financial products include Sukuk, which are asset-backed securities that comply with Shariah law, and microfinance initiatives designed to serve underbanked populations [18], [19]. As Islamic finance expands into new territories like Turkey, studies examine the specific regulatory frameworks and tax policies that support the growth of Islamic financial products, highlighting potential areas for further innovation.…”