118 / 521
On the other hand, earnings from the acquisition and disposition of
lease certificates issued domestically in Turkish Lira through promise
to sell or buy back and earnings from the sale before term of lease cer-
tificates are subject to banking and insurance transaction tax in the
amount of 1% for issuers.
Conclusion
Islamic Finance and interest free finance instruments are increas-
ing their popularity globally as part of an effort to attract Gulf
investors. And Turkey’s legislation and practice on the matter is rapid-
ly evolving with its foreign investor friendly and Islam espousing polit-
ical and economic environment. Thus, the favorable tax regime for
issuers, investors and the finance institutions offers broad opportunities
in
Sukuk
market of Turkey.
102
NEWSLETTER 2014