MESTECC HOPES TAX INCENTIVES FOR INVESTMENTS IN VC, IS APPROVED THIS YEAR
KUALA LUMPUR, July 25 (Bernama) -- The Ministry of Energy, Science, Technology, Environment and Climate (Mestecc) hopes the RM20 million income tax exemption proposed in the Budget 2018 for investments made in venture capital (VC), VC funds , can be gazetted by year-end.
Its Minister ,Yeo Bee Yin said the ministry was currently working closely with the Finance Ministry (MoF) and the Securities Commission (SC), to present the proposal to the Cabinet in two weeks time.
She said the proposal had been approved by the MoF and would be implemented by the SC once approved by the Cabinet.
The VC and VC funds are parked under the SC.
"With this being in black and white, corporates and private individuals who invest in these instruments, will get tax incentives after three years, instead of upon exit of the investment," she said in her keynote address at the Southeast Asia Venture Capital & Private Equity Conference 2019 here, today.
She also said VC companies (funds) that can offer the incentive will need to be registered with the SC by Dec 31, 2019.
"The incentive will be claimable for investments made till 2023 with the incentive period starting at the first point of certification, which is by the SC," she said.
Meanwhile, Yeo said as her ministry is going through a restructuring, it was also preparing Cabinet papers to be presented at the same time, on how to restructure and consolidate five agencies under it.
The agencies are Cradle Fund Sdn Bhd, Malaysia Debt Ventures Bhd, Malaysia Venture Capital Management Bhd (Mavcap), Malaysian Technology Development Corporation (MTDC) and Kumpulan Modal Perdana Sdn Bhd.
"As there is some overlapping in functions and roles of these agencies, we want to make them more effective in catalysing growth," said Yeo.
She added that engagement with all relevant parties, including other ministries on the matter, have been on-going the past few months with a view of obtaining their feedback.
-- BERNAMA
BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 IFLIX channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.
Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial
