EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Recent Searches
Amendments to Public Ruling (PR) No. 3/2022 – Taxation of Foreign Fund Management Company
The IRB has published on its website an amended PR No. 3/2022 – Taxation of Foreign Fund Management Company, on 1 September 2022. The PR explains the tax treatment of income received by a foreign fund management company that provides fund management services to foreign and local investors. The PR is, however, 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.
The salient changes are outlined below.
Paragraphs 4.2 and 4.3
Previously, one of the conditions stipulated by the Securities Commission Malaysia (SC) for the licensing of foreign fund management companies was that at least 50% of the paid-up capital is to be owned by foreign equity holders. The PR has been amended to clarify that this condition, which was previously incorporated in the Guidelines for the Establishment of Foreign Fund Management Companies, has been revoked since 10 March 2021.
Appendix of the amended PR
The flowchart on the summary of tax treatment accorded to foreign fund management companies has been updated (as outlined in the Appendix to this Alert).
APPENDIX
Summary of tax treatment accorded to a foreign fund management company
