France Publishes New Tax Guidelines Related to the Development of Certain Islamic Finance Transactions in France

On August 24, the French Ministry of Finance published guidelines concerning the French tax treatment of four Islamic finance transactions: Murabaha, Sukuk, Ijara and Istisna. These guidelines cover the corporate income tax, withholding tax, VAT, registration tax and business tax treatment for these four types of Islamic finance transactions.

This Alert Memo outlines the content of the guidelines and explains their implications.