MLY SCM made comments on the Budget 2024 measures, addressing fiscal policy improvements and enhancing the well-being of the people, further supporting firms.
Budget Speech
MLY GVT will implement new legislation for high value goods tax at 5- 10% on certain high-value goods such as jewelry, watches based on threshold value of goods price.
Also considering exemption of capital gains tax on the stock exchange for certain activities such as approved IPO, internal structurification and open capital companies.
MLY CB, with financial sector cooperation, is developing a National Fraud Portal (NFP) to automate fund tracking, speed up the detection, freezing and return of funds.
Comments by MLY SCM
MLY SCM supported the government's targeted exemptions on capital gains tax impositions on activities relating to approved IPOs and venture capital businesses.
The extension of tax incentives on sustainable and responsible investment (SRI) sukuk and SRI funds will also encourage greater growth in these segments.
Oct. 14, 2023 LBN FSA Tax Incentives
On Oct. 14, 2023, LBN FSA expressed support for tax incentives accorded to Labuan Business and Finance Center (Labuan IBFC), to support the center's development.
LBN FSA said the tax incentives will promote Islamic finance activities in Labuan IBFC such as digital banking, Ummah-linked companies (ULC) Islamic token issuers, wallets.
Labuan players which offer Islamic social finance activities such as savings for Hajj and pension, collection of global zakat and wakaf will also be offered tax incentives.
The framework on ULC will also be finalized, in order to attract more players to offer Islamic financial businesses globally, especially to the underserved market.
In Oct. 2023, MLY PTPTN implemented the loan repayment incentive, see #188017.
Oct. 23, 2023 Islamic Financial Activities
On Oct. 23, 2023, LBN FSA released income tax exemptions for Islamic financial activities, to strengthen Labuan IBFC as a primary hub for Islamic finance.
Offered a five-year, 100% income tax exemption to Labuan-based entities involved in Islamic financial activities, serving as substantial incentive for entities in the sectors.
Detailed conditions and extent of tax exemption will be provided in the tax exemption order under Labuan business activity tax act 1990, which will be gazetted in future.
The exemption will be in effect from year assessment 2024 to 2028.
Nov. 2023 Changes re Assessment of Tax
On Nov. 21, 2023, LBN FSA said 2024 Budget includes changes regarding assessment of tax for Labuan entities under the Labuan business activity tax act 1990 (LBATA).
The assessment basis would shift from preceding year to current year in the budget.
The new assessment basis will take effect from the year of assessment 2025.
