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      Table comparing structures for Islamic finance

       

      Regulated

      Lightly regulated

      Unregulated

      Structure

      UCITS
      and UCI

      SICAR

      SIF

      SOPARFI

      Securitisation Vehicle

            

      Applicable regulation

      2002 Law on undertakings for collective investment, Part I and II, as amended

      2004 SICAR Law, as amended

      2007 SIF Law, as amended

      1915 Companies Law, as amended

      2004 Securitisation Law, as amended

            

      Supervision by CSSF

      Yes

      Yes (light)

      Yes (light)

      No

      No (*)

            

      Eligible assets

      Restricted for UCITS; un-restricted for UCI

      Private equity and venture capital

      Unrestricted

      Unrestricted

      Unrestricted

            

      Risk diversification rules

      Yes

      No

      Yes

      No

      No

           

      Eligible investors

      Unrestricted

      Well informed investors

      Unrestricted

      Unrestricted

            

      Tax treatment

      No tax except for annual subscription tax of 0.05% on the net asset value

      Income tax at 28.59% but effective tax rate close to 0% due to special provisions

      No tax except for annual subscription tax of 0.01% on the net asset value

      Income tax at 28.59%

      Income tax at 28.59% but effective tax rate close to 0% due to special provisions

          

      Required service providers

      Auditor, Administrator, Central Depository

      Auditor

      Auditor

            

      Practical application for shariah compliant products

      Mudaraba Musyarakah Murabaha Ijarah

      Mudaraba Musyarakah  Ijarah

      Mudaraba Musyarakah Murabaha Ijarah

      Mudaraba Musyarakah Murabaha Ijarah

      Murabaha
      Ijara
      sukuk

            

      Benefit from Tax Treaty

      Yes if in the form of SICAV

      Depends on target

      Yes if in the form of a SICAV

      Yes

      Yes

            

      EU Passport

      Yes (for UCITS)

      No

      No

      No

      No

      (*) If securities are not issued to the public on a continuous basis