Forest City first location in Malaysia to offer zero tax rate for family offices

The Star

Forest City will be the first location in Malaysia to offer a 0% tax rate for family offices, said Finance Minister II Datuk Seri Amir Hamzah Azizan in a press conference after the launch of the incentive package for Forest City Special Financial Zone by Johor Regent Tunku Ismail Sultan Ibrahim on Friday (Sept 20).  Read more at https://shorturl.at/H1nMs  WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

Transcript

00:00Forest City enjoys several incentives.

00:05In the event of the launch of the Forest City Special Financial Zone,

00:10this is part of the monetary economy.

00:13Last year we announced it in August,

00:16and this year we want to highlight it.

00:18What do we do?

00:19We create a special financial zone

00:22where we hope we can attract

00:25industry players in the financial sector

00:30to come to Malaysia

00:32to develop another segment in Malaysia

00:35that we don't have in Malaysia.

00:38So I listed several areas in our financial zone.

00:43First, we want to launch the family office sector.

00:48Because we know that around the world now

00:51there are a lot of people with assets

00:56that are controlled by family offices

00:59that are growing.

01:01Usually they are placed in financial zones

01:04or financial zones in several places abroad.

01:08But we want them to come to Malaysia.

01:11To attract them to come to Malaysia,

01:13we say there are several interesting things here.

01:17In Forest City, if we look outside,

01:20the infrastructure is already there.

01:23The location is ideal.

01:25Close to Singapore,

01:27close to all existing institutions.

01:29So we can complement what is there.

01:33Third, what we do to attract them,

01:36we give a little incentive for them to come here.

01:39We attract them with a tax exemption

01:43and incentives for them to relocate to this country.

01:48We also facilitate the process of application

01:52for them to do business in this country.

01:55We have a special facilitation center

01:58that we located in Forest City

02:01to help attract more family offices.

02:06Family offices from around the world

02:08are expected to be bigger

02:10and they will control assets under management.

02:15More than US$7 trillion in 2030.

02:21This is more than 75% of what we have now.

02:25So we hope that half of that money will go to Malaysia.

02:30When you mentioned that 0% tax rate

02:33for family offices,

02:34can you elaborate on what does it apply to

02:37and what does that mean?

02:39The 0% tax rate is a profit that you earn

02:42on the transactions that you do in this country.

02:44So as you file your normal tax,

02:46we'll give you a 0% tax rate for 10 years.

02:49And there's an obligation that if you want to renew this,

02:52then you have to scale up your operation

02:54by adding more people,

02:55by adding more investment in the country

02:57and also adding the asset under management in the country.

03:00But there's clarity here.

03:01This is not a once-off incentive.

03:03It's a 10-year incentive plus an option to extend it

03:06if you are able to scale it up to the right form.

03:08So it is a win-win solution that we're trying to do.

03:14For more UN videos visit www.un.org

Category

Transcript

Be the first to comment

Recommended