Budget 2023: the government seeks to extend the tax deduction on registration fees for three years

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Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz presents the 2023 budget at Dewan Rakyat in Kuala Lumpur on October 7, 2022. ― Bernama pic

Saturday, October 8, 2022 7:50 AM MYT

KUALA LUMPUR, October 8 ― The government has proposed to extend the existing tax deduction of up to RM1.5 million on registration expenses in the ACE and LEAP markets for three years from the year of assessment 2023 to 2025, according to the Ministry of Finance (MoF).

In the annex of the 2023 budget on taxes, the Ministry of Finance said that it aims to continue to encourage more technology companies and micro, small and medium enterprises to expand their businesses by registering in Bursa Malaysia. by increasing capital funding.

The ministry has also proposed that this tax deduction be extended to cover the cost of listing tech companies in Bursa Malaysia’s main market.

In order to provide an innovative Sharia-compliant financing channel to position Malaysia as a regional hub for Sustainable and Responsible Investment (SRI) related sukuk issuance, the government has proposed a tax deduction on the cost of issuance of SRI-related sukuk which is approved, or authorized, or filed with the Malaysian Securities Commission for a period of five years from valuation years 2023 to 2027.

At the same time, in order to continue to incentivize more individual investors to invest in start-ups via crowdfunding, the government has proposed to widen the scope of tax incentives to include investments made by individual investors via nominee companies of limited liability companies, the investment period extended by three years (from January 1, 2024 to December 31, 2026) compared to the tax incentives of the 2021 budget which were from January 1, 2021 to December 31, 2023.

So far, investments made must be through crowdfunding platforms approved by the Malaysian Securities Commission. ― Bernama

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