From a tax perspective,one of the major challenges confronting Non Interest Banking (NIB) internationally is that tax laws generally cater for conventional banking products, which involve the charging of interest on monies lent which is not the same with NIBs.
While many Islamic products are structured to replicate the economic effects of conventional financial products, the legal form of these products is very different from conventional products. This may lead to differences in tax treatment that may potentially place Islamic banks and their customers at a disadvantage compared to banks with conventional products………………………………………..Full Article: Source