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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

This material or communication has been prepared for the sole purpose of providing general information and is not intended to be relied upon as accounting, tax or other professional advice. Consent has to be obtained from the firm prior to any act of republishing or circulating to the general public. While the information is considered correct at the date of publication, changes in circumstances or updates in tax ruling after the time of publication may impact its accuracy and reliability. We have not, by means of this material or communication, rendered any professional advice or services. Thus, we shall not be responsible for any losses sustained by any person who relies on this material or communication. Please refer to our tax advisors should you require our consultancy services.


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