Tanazul (waiver of entitlement)
A party's waiver of an entitlement it would otherwise have, such as profit above an agreed ceiling.
Tanazul is the waiver of an entitlement to claim something one is owed. Bank Negara Malaysia's compilation of Shariah Advisory Council resolutions defines it as a waiver of the entitlement to claim, and records a musharakah resolution allowing partners to stipulate that one partner waives its entitlement to profit above a certain ceiling. AAOIFI's partnership standard similarly allows a partner to give up part of its profit share on the date of distribution. Because a waiver changes who receives income, it should be documented and applied exactly as agreed.
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This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.