Sukuk: Functionality, types, taxation and accounting in Turkey

The rapid growth of the world economy creates the need for new funding sources. Because many of the methods developed in that manner includes interest, it's hard to contribute these funds that Islamic groups hold in to the economy. In recent years, new financing methods have begun to be developed and implemented in order for the Islamic capital to participate in the economy. Among the interest free methods that were developed to bring these funds in to the economy, sukuk seems most succesfull. Sukuk has gained momentum in recent years and has become widespread. In this study, firstly the definition and development of sukuk were examined and it was investigated how sukuk was a financing instrument and how it developed from day to day. Beside this, the function and types of sukuk are also discussed. In addition, the taxation and accounting of sukuk in Turkey has been briefly addressed.