Tax Exemption for Fund Management Services for Sustainable and Responsible Investment Fund

27 December 2018

The Income Tax (Exemption)(No. 5) Order 2018 which was gazetted today exempts a company from payment of income tax in respect of statutory income derived from the business of providing fund management services for Sustainable and Responsible Investment Fund (SRI Fund) in Malaysia. The exemption is subject to the following conditions being fulfilled –
 

1. The company must be a fund management company and be –

1. resident in Malaysia;

2. incorporated under the Companies Act 2016; and

3.  licensed under the Capital Markets and Services Act 2007 or registered with the Securities Commission Malaysia as a venture capital management corporation or a private equity management corporation; and

2. The SRI Fund must fulfil the requirements set out in the Guidelines on Sustainable and Responsible Investment Funds issued by the Securities Commission Malaysia.

The exemption does not apply if the company has been granted any incentive under s. 60G or any exemption under s. 127(3)(b) of the Income Tax Act 1967 in the basis period for a year of assessment.

This Order comes into operation from year of assessment 2018 to year of assessment 2020.