Islamic Finance and EU Law – Part 2

This article addresses whether or not the special tax regimes for Islamic finance enacted by certain Member States amount to State aid under article 107(1) of the TFEU. Part 1, published in issue 5 of European Taxation (2019), dealt with the basic concepts of Islamic finance, distinguishing it from conventional finance and analysing the need for special tax regimes. Part 2 analyses whether special tax regimes for Islamic finance amount to State aid in the EU context.