The Income Tax (Exemption) (No. 5) Order 2021 [P.U. (A) 209/2021] was amended by the Income Tax (Exemption) (No. 5) Order 2021 (Amendment) Order 2024 [P.U. (A) 106/2024].
The amendment order was made on 2 April 2024.
The key change introduced by the amendment order is the extension of the exemption period for qualifying companies providing fund management services for Sustainable and Responsible Investment Funds in Malaysia.
The original order provided the exemption from the year of assessment 2021 until the year of assessment 2023.
The amendment order extends this period until the year of assessment 2027.
The amendment is effective from the year of assessment 2024, as the original order was set to expire in the year of assessment 2023.
Advice to taxpayers:
Companies that are providing fund management services for Sustainable and Responsible Investment Funds in Malaysia and meeting the conditions specified in the original order can continue to enjoy the income tax exemption on the statutory income derived from such services until the year of assessment 2027.
However, companies should ensure that they continue to meet the conditions set forth in the original order, such as obtaining the annual certification from the Securities Commission Malaysia, incurring the specified minimum annual operating expenditure, and employing the required number of full-time employees in Malaysia. Companies should also maintain proper records and separate accounts for the exempt income as required under the original order. References:-
Income Tax (Exemption) (No. 5) Order 2021 (Amendment) Order 2024
Income Tax (Exemption) (No. 5) Order 2021 [P.U. (A) 209/2021]