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Public Ruling No. 7/2022: Venture Capital Tax Incentives

Updated: Feb 23, 2023

On 23 December 2022, the IRB released PR No. 7/2022 on Venture Capital Tax Incentives, which replaces the previously issued PR No. 2/2016 from 9 May 2016.

The new 17-page PR contains the following contents and includes six examples:-

  1. Objective

  2. Related provisions of the law

  3. Interpretation

  4. Venture capital industry in Malaysia

  5. Regulatory framework for the venture capital industry

  6. Tax exemption incentive for a venture capital company (VCC) investing in a venture company (VC)

  7. Tax deduction incentive for an individual or a company investing in a VC or VCC

  8. Mutually exclusive

  9. Tax incentive for a venture capital management company (VCMC)

  10. Application for certification of investment for tax exemption and tax deduction in a VC and VCC

  11. Updates and amendments

  12. Disclaimer

The newly published PR No. 7/2022 is mainly similar to PR No. 2/2016. It provides an overview of the tax incentives offered to the venture capital industry in Malaysia.

It explains and provides examples of the new P.U. Orders gazetted in 2022, which involve the provision of early-stage financial capital to start-up VCs with high potential but also higher risk.


VCCs are companies established to raise funds in the form of equity or loan capital, which is then invested in the VC as seed capital, start-up, or early-stage financing.


VCMCs manage these investments on behalf of VCCs at different life cycle stages.


Relevant subsidiary laws referred to in this PR are as follows:


1. Income Tax (Exemption) (No. 2) Order 2022 [P.U.(A) 115/2022]


2. Income Tax (Exemption) (No. 3) Order 2022 [P.U.(A) 116/2022]

3. Income Tax (Deduction for Investment in a Venture Company or Venture Capital Company) Rules 2022 [P.U.(A) 117/2022]

Regulatory Framework for the Venture Capital Industry

The new PR also stipulates that SCM has been entrusted with assessing and certifying applications for tax incentives for the venture capital industry under the relevant Income Tax Rules and Income Tax (Exemption) Orders.


SCM has issued the following:

  • the Guidelines on the Registration of VC and Private Equity Corporations and Management Corporations (revised on 28 November 2022); and

  • the Venture Capital Tax Incentives Guidelines (revised on 28 November 2022),

which are available from the SCM’s website at www.sc.com.my.


Reference
  1. Public Ruling No. 7/2022: Venture Capital Tax Incentives

23.1 Public Ruling No. 7_2022 - Venture Capital Tax Incentives
.pdf
Download PDF • 281KB

2. Guidelines on the Registration of VC and Private Equity Corporations and Management Corporations (revised on 28 November 2022)

23
.2 Guidelines on the Registration of VC and Private Equity Corporations and Management C
Download 2 GUIDELINES ON THE REGISTRATION OF VC AND PRIVATE EQUITY CORPORATIONS AND MANAGEMENT C • 243KB

3. Venture Capital Tax Incentives Guidelines (revised on 28 November 2022)

23.3 e Venture Capital Tax Incentives Guidelines (revised on 28.11.2022)
.pdf
Download PDF • 244KB

5 games to keep employees of CCS & Co Plt - Chartered Accountants and Bispoint Group of Accountants connected.


We put a lot of emphasis on ensuring that our team members enjoy a balanced life outside work.


Hence, our firm's Sports and Social Committee is responsible for actively organising an exciting variety of events, such as the Annual Dinner, Annual Trips and Inter-accounting Firm Tournament.


These events are planned so that our professionals can take some time off to relax and, more importantly, come together to strengthen their sense of community and teamwork.


This year's Inter-Accounting Firm Tournament will be held on February 25 and 26, 2023 (Saturday and Sunday). We welcome your support!


5项活动让 CCS 特许会计师Bispoint Group of Accountants 的员工保持联系。


我们非常重视我们的团队成员享受工作以外的平衡生活。


有鉴于此,我们公司的康乐委员会积极举办各种令人兴奋的活动,如年度晚宴、年度旅行和会计师事务所之间的比赛。


这些活动的策划是为了让我们的专业人员可以抽出一些时间来放松,更重要的是,他们可以聚在一起加强社区意识和团队精神。


今年的会计师事务所之间的比赛将于2023年2月25日和26日(星期六和星期日)举行。我们欢迎你前来支持!

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