Search Islamic Finance Answers

1,000+ scholar-approved answers and growing...

Assigning Ownership Of Murabaha Goods

Is it permissible for the bank to assign the ownership of Murabaha goods to the client before the exchange of offer and acceptance in order to avoid double taxation?

One should have a scholar look at the documentation for the specific transaction to ensure that it is AAOIFI-compliant and one should also ensure that it is legal for the jurisdiction, however, in general, it is permissible for the bank to assign the name either to itself or to the client in order to avoid double taxation provided that the exchange of offer and acceptance/Murabaha sale afterwards takes place between the bank and the client not in the latter’s capacity as bank's agent but as customer/buyer of Murabaha goods.

7 Day Free Islamic Finance Course

Please enter your first name and email address to start receiving your CIFE™ lessons instantly!

We value your privacy. We will never rent, sell, or spam email addresses.

ASK AN ISLAMIC FINANCE QUESTION

Each question is reviewed by an Islamic finance expert and approved by a scholar.

Ask Now »

SEARCH ISLAMIC FINANCE Q&As

Browse one of the world's largest database of Islamic finance Q&As available online.

View details »

What’s New at Ethica

Press releases, live events, book recommendations, discount offers, and more

View details »