Investment Holding Company Lhdn

For resident company with paid up capital of rm2 5 million and below at the beginning of the basis period the tax rate for first rm500 000 chargeable income is 19 reduced to 18 in ya 2017.

Investment holding company lhdn. The inland revenue board irb has replaced the public ruling pr no. Investment holding company by inserting additional explanations to paragraph 10. September 19 2015 36 comments 29259 finance ihc investment holding company property investment property refinancing sme mortgage loan investment holding company ihc everyone is talking about ihc nowadays for property investment. It may be viable to invest in investment property under company as the income tax rate is lower when compared to the individual.

An investment holding company is different from an investment dealing company. Investment holding company public ruling no. 3 7 related company has the same meaning as provided in subsection 2 4 of the ita. 3 2011 date of issue.

Page 2 out of 28 income from letting of real property public ruling no. A company is classified as an ihc investment holding company in malaysia if it is holding onto investment assets and the income derived from these assets is the main activity. Here s the exact wording applied by a ruling from the inland revenue board of malaysia lhdn on the definition of an investment holding company. An investment dealing company refers to a company that owns investments such as properties and shares as a form of trading stock to derive trade income from the purchase and sale of these investments e g.

Capital allowance industrial building allowance and the eligibility to claim against rental income. Definition of an investment holding company 1 5. An investment holding company ihc means a company whose activities consist mainly in the holding of investments and not less than 80 of its gross income other than gross income from a source. 16 december 2015 page 1 of 23 1.

Gain on sale of real properties and shares. Companies currently enjoying certain incentives such as pioneer status ps investment tax allowance ita reinvestment allowance etc. Or which has unutilised ita or unabsorbed pioneer losses upon the expiry of its ita or ps incentives under the promotion of investments act 1986 are not eligible for group relief. Objective the objective of this public ruling pr is to explain the tax treatment in respect of an investment holding company resident in malaysia.

Letting of real property as a business source. 19 december 2018 4. Relevant provisions of the law. Related provisions 1 3.

12 2018 inland revenue board of malaysia date of publication. Investment holding company 10 2015 date of publication.