152
Figure 4.16: Key Factors Underpinning the Growth of Turkey’s Sukuk Market
 Through a law amendment,
tax neutrality(i.e.removalof
salestax, valueaddedtax,
stamptax,registryfee, etc)
was provided for allsukuk
structures.
 Earningsfrom ijarah
certificates issued onshore
(regardlessof maturity)will
not betaxed for a corporation
but individuals incur10%
income tax.
 A varyingrateof 0% to 10% is
applicableon income
generated from the issuanceof
offshore sukuk.
Taxation
 ue to ur ey’s c l la
en ron ent aded cated
o un u on lease
cert cates asado ted along
t t eestabl s ent o A
 ar a go ernance s
currently on toredby t e
art c at onban s’ ar a
co ttee
 o re ens enesso t e
o un u srelatedto
su u ssuancebroug t clar ty
andgu danceon structur ng
and roduct nno at on
 tr ct o erat ons o t e A s
bel e edto ro deade uate
n estor rotect on and
trans arency nter so
d s uteresolut onor
ban ru tcy rocesses
 Issues of macroeconomic
instability has brought
ouse olds’ ealt creat on
residing outside the financial
market (e.g. gold, rest estate,
etc).
 B’s launc o a gold
indexed ijara sukuk attempts
to encourage the growth of
savings withinthe financial
system.
 In support of developing a
healthy corporate sukuk
pipeline (fromvarying
sectors), a clear value
proposition must be created
from the beginning.
Diversified market
players in supply &
demand sides
 reat ono A s l tedto
certa nent t es Barr erstot e
creat onand unct on o A s
are re ent ngot er
cor orates ro ssu ng su u
 e o un u doesnot
ose a andatorycred t
rat ngon ur s or do est c
ssuances t so e
exce t ons or nternat onal
ssuances but n estor
re erence ay nderso e
ur s cor orates t at
cannot securea des rable
rat ng
 e ur s Go ern ent and
regulators a edone ell n
a nga a lable d erent
atur t eso so ere gn su u
or y eld benc ar ng
 art c at onban s a e also
beenact e n creat ngt e
r atesectors’ benc ar
y eldcur e
Market &
Infrastructure
Development
Legal & Regulatory
Framework
Sources: RAM, ISRA