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

In the Budget 2023 appendix on taxes, MoF said it aims to continue to encourage more technology-based companies and micro, small and medium enterprises to expand their business by listing on Bursa Malaysia by increasing capital funding.

The ministry also proposed that this tax deduction be extended to cover the cost of listing technology-based companies on Bursa Malaysia’s Main Market.

In order to provide an innovative Shariah-compliant financing channel to position Malaysia as a regional hub for sustainable and responsible investment (SRI)-linked sukuk issuances, the government has proposed a tax deduction on the cost of issuing SRI-linked sukuk that is approved, or permitted, or deposited with the Malaysian Securities Commission for a period of five years from assessment years 2023 to 2027.

Meanwhile, in order to continue to attract more individual investors to invest in start-ups via equity crowdfunding, the government has proposed to expand the scope of tax incentives to include investments made by individual investors via limited liability partnership nominee companies, with the investment period being extended for three years (January 1, 2024, to December 31, 2026) compared with tax incentives under Budget 2021 which were from January 1, 2021, to December 31, 2023.

Thus far, investments made must be via equity crowdfunding platforms approved by the Malaysian Securities Commission. – Bernama