National Shari'a Board - Indonesian Council of Ulama Fatwa No. 18 of 2000 on Productive Asset Depreciation Reserve Funds in Shari'a Financial Institutes

This fatwa permits the provision of reserve funds, provided those funds derive from profits of the relevant shari'a financial institute. Such an approach, therefore, eliminates the possibility of having an adverse effect on the customer. The fatwa also states that, for tax purposes, a shari'a financial institute may source such reserve funds from its overall profits.

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