The Income Tax (Exemption) (No. 6) Order 2021 [P.U. (A) 282/2021] was amended by the Income Tax (Exemption) (No. 6) Order 2021 (Amendment) Order 2024 [P.U. (A) 107/2024].
The amendment order was made on 8 March 2024 and has effect from the year of assessment 2024.
The key changes introduced by the amendment order are:
1. Extension of exemption period:
The exemption period for qualifying companies providing fund management services to business trusts or real estate investment trusts in Malaysia has been extended.
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.
2. Reduction of exempted statutory income:
A new subparagraph 3(2A) has been inserted, which states that the statutory income derived from the business of providing fund management services that qualifies for the exemption shall be 60% of the statutory income.
This effectively reduces the amount of income exempted from tax for qualifying companies.
In summary, the amendment order extends the exemption period for qualifying companies until the year of assessment 2027 but limits the exemption to 60% of the statutory income derived from the provision of fund management services to business trusts or real estate investment trusts in Malaysia.
These changes are effective from the year of assessment 2024.
References:
Income Tax (Exemption) (No. 6) Order 2021 (Amendment) Order 2024
Income Tax (Exemption) (No. 6) Order 2021 [P.U. (A) 282/2021]
