---
title: "What is Tanazul (waiver of entitlement)? | IslamicOpenFinance™"
description: "A party's waiver of an entitlement it would otherwise have, such as profit above an agreed ceiling."
url: https://islamicopenfinance.com/glossary/tanazul/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Partnership and investment](https://islamicopenfinance.com/glossary/#partnership)

Partnership and investment

# 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.

## Sources

- [Bank Negara Malaysia, Shariah Resolutions in Islamic Finance, second edition, 2010: glossary, tanazul, and musyarakah resolution on waiver of profit above a ceiling](https://www.bnm.gov.my/documents/20124/9198675/shariah_resolutions_2nd_edition_EN.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Musharakah** A partnership in which each partner contributes capital; profit is shared as agreed and loss in proportion to capital.](https://islamicopenfinance.com/glossary/musharakah/) [**Shirkah (partnership: inan, mufawadah, abdan, wujuh)** Partnership in Islamic law, with classical forms based on capital, work or credit and a rule that losses follow capital.](https://islamicopenfinance.com/glossary/shirkah/) [**Profit sharing ratio** The agreed split of profit between partners, expressed as a ratio of actual profit, never as a fixed sum or a share of capital.](https://islamicopenfinance.com/glossary/profit-sharing-ratio/) [**Ibra (rebate on early settlement)** Releasing a debtor from part of a debt; in sale-based financing, the rebate of unearned profit when a customer settles early.](https://islamicopenfinance.com/glossary/ibra/) [**Hibah** A gift: a transfer of ownership without consideration, sometimes paid by banks at their discretion to account holders.](https://islamicopenfinance.com/glossary/hibah/)

**Partnership and investment**

1. [Mudarabah](https://islamicopenfinance.com/glossary/mudarabah/)
2. [Musharakah](https://islamicopenfinance.com/glossary/musharakah/)
3. [Diminishing musharakah](https://islamicopenfinance.com/glossary/diminishing-musharakah/)
4. [Rabb al-mal](https://islamicopenfinance.com/glossary/rabb-al-mal/)
5. [Mudarib](https://islamicopenfinance.com/glossary/mudarib/)
6. [Profit sharing ratio](https://islamicopenfinance.com/glossary/profit-sharing-ratio/)
7. [Restricted mudarabah](https://islamicopenfinance.com/glossary/restricted-mudarabah/)
8. [Unrestricted mudarabah](https://islamicopenfinance.com/glossary/unrestricted-mudarabah/)

[All 221 terms](https://islamicopenfinance.com/glossary/)