Taxation of Foreign Fund Management Company
Public Ruling No.3/2022 was published on the 29th of July 2022 with the objective to clarify the tax treatment of income received by foreign fund management company that provides fund management services to foreign and local investors.
A Foreign Fund Management Company is a Company incorporated in Malaysia and licensed under the Capital Markets and Services Act 2007. In short, the Company provides fund management services to its clients.
Highlighted Areas in the Public Ruling
Company is exempted from tax on the statutory income derived from the business of providing fund management services to local investors in Malaysia, from the year of assessment “YA” 2021 to YA 2023.
The exemption is subject to the company obtaining an annual certification from the Securities Commission Malaysia (SC) that the following conditions have been fulfilled:
1. The company provides fund management services to local investors in Malaysia in accordance with Shariah principles.
2. The company has at least two full-time employees in Malaysia, with one of the employees holding a Capital Markets Services Representative License under the CMSA
3. The company incurs annual operating expenditure of at least RM250,000 in Malaysia.
*(Note: This Public Ruling is not applicable to a foreign fund management company that issues, offers or makes an invitation to subscribe or purchase units in conventional unit trust funds.)
Source: Public Ruling No.3/2022 Taxation of Foreign Fund Management Company
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