On Sep. 20, MLY SCM announced single-family office, tax incentives.
MLY SCM Finance Minister II Datuk Seri Amir Hamzah Azizan unveiled incentives to attract international capital to the Forest city special financial zone (FCSFZ) in Johor.
FCSFZ aims to position Malaysia as a dynamic player on global financial stage.
Follows MLY SCM Sep. 2024 issued a speech on investment management, #225866.
Tax Incentives
Concessionary corporate tax rate between 0-5% for businesses operating in FCSFZ.
15% individual income tax rate for knowledge workers/Malaysians working in FCSFZ.
0% tax rate for family offices, 5% tax rate for financial global business services, alongside businesses operating in fintech and foreign payment system operators.
Financial Sector Measures
Single-family office scheme to be operational by Q1 2025, coordinated by MLY SCM.
Locally-incorporated foreign banks to have regulatory flexibilities for FCSFZ branches.
Foreign exchange flexibility for offshore borrowing, foreign currency assets investment.
Special deductions on relocation costs, enhanced industrial building allowances, withholding tax exemptions to be made available for eligible financial sector entities.
SFO incentive duration is 20 years, initial 10 years as well as an additional 10 years.
Initial SFO period requirements include new SFOV incorporated in Malaysia, pre-registered SCM; assets under management (AUM) at least valued at MYR 30mn.
As for additional SFO period, AUM of at least MYR 50mn; local investment minimum 10% of AUM or MYR 10mn; annual local operating expenditure at least MYR 650k.
SFO management exempt from some Capital markets and services act 2007 licenses.
