Within the South African banking environment, mainstream bank clients earn interest on their investments and receive a tax exemption. However, Islamic banking clients, in keeping with the principles of Shari‘a law, do not receive interest. They are paid a profit share on their investments, and hence do not enjoy the tax exemption. The new section 24JA of the Income Tax Act has introduced tax treatment for the following Islamic financing transactions effectively removing 'interest' from the equation: <ul> <li> Mudarabah – Investment account</li> <li> Murabahah – Cost plus financing</li> <li> Diminishing Musharakah – Joint ownership</li> </ul> This study attempts to compare the tax treatment of Islamic financing products between the United Kingdom and South Africa. Moreover, this study also investigates the issues of the new section 24JA of the Income Tax Act as well as the United Kingdom‘s tax legislation, regarding Islamic financing, as to how far they ensure tax parity between Islamic financing products and conventional financing products. The case of tax regimes in Islamic finance operating in a conventional system was demonstrated in the two countries. The study is supported by a literature review related to Islamic finance tax background and Islamic finance products between the two countries. The major revelation of the study shows that the degree of parity of the Islamic income tax legislation leaves a lot to be desired in order to ensure a sense of confidence in the conventional financing environment. Its biggest challenge lies in its degree of simplicity and flexibility in order to address issues in tax that may be complex and fall between its requirements and the conventional and already popular systems. AFRIKAANS : Binne die Suid-Afrikaanse bankwese, verdien kliënte van die hoofstroom banke rente op hulle beleggings. Hierdie rente-inkomste is belasting vry. In teenstelling hiermee verdien kliënte van Islamitiese banke ʼn winsdeling in plek van rente, op hulle beleggings. Hierdie winsdeling beginsel word verplig deur die Shari‘a wetgewing. Bogenoemde winsdeling is nie belasting vry nie en word dus ten volle belas. Artikel 24JA van die Inkomstebelasting wetgewing behandel die hantering van Islamitiese Finansiering transaksies in fyner besonderhede: <ul> <li> Mudarabah – Beleggings rekening</li> <li> Murabaha – Koste plus finansieringskoste</li> <li> Diminishing Musharaka – Gesamentlike eienaarskap</li> </ul> Hierdie artikel verwyder effektiewelik die 'rente' komponent. Hierdie studie be‘oog om die belasting hantering van Islamitiese Finansierings produkte in Suid-Afrika en die Verenigde Koninkryk te vergelyk. In hierdie studie word die moontlike probleme ten opsigte van die nuwe artikel 24JA oorweeg. Spesifieke aandag word ook geskenk aan die belasting hantering tussen Islamitiese Finansierings produkte en die konvensionele finansierings produkte. Die studie word ondersteun deur literatuur wat handel oor Islamitiese belasting agtergrond en finansierings produkte tussen twee verskillende lande Die belangrikste uitkoms van hierdie studie, het bewys dat die Islamitiese Inkomstebelasting spesifiek met betrekking tot finansierings opsies steeds baie ontwikkel moet word. Bo en behalwe die uitkoms geïdentifiseer, is die grootste uitdaging daarin dat die Islamitiese belasting wet moontlik nie komplekse situasies sal kan aanspreek nie. Dit word toegeskryf aan die feit dat die wetgewing baie simplisties is. / Dissertation (MCom)--University of Pretoria, 2012. / Taxation / unrestricted