AskImamDarul Iftaa Mahmudiyyah (AskImam)

Is it permissible to take out a retirement annuity with the intention of the tax benefit?

Fatwa 46681English
Jurisprudence and Rulings (Fiqh)

Question

Is it permissible to take out a retirement annuity with the sole intention of the tax benefit it awards to the taxpayer.

A stringent record will be kept to keep track of monies paid in every month...

Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

There are many types of retirement annuity schemes. In order to determine whether the scheme in reference is permissible or not, kindly forward us the details and contracts of the retirement annuity you refer to.

And Allah Ta’āla Knows Best

Mudassir

Student - Darul Iftaa
U.S.A

Checked and Approved by,
Mufti Ebrahim Desai.

(2020-12-20)

Answered by
Mudassir
Checked & approved by
Mufti Ebrahim Desai
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