Malaysia dangles 0% tax carrot to draw family offices to Forest City special financial zone, outlines other incentives - Luxury Fast Article
The government is also offering lower income tax rates for foreign workers as well as concessionary corporate tax rates to attract international firms.
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The Johor state government has proposed that the SFZ be integrated with the Singapore-Johor special economic zone (SEZ), but this has yet to be confirmed by both the federal governments of Malaysia and Singapore.
During a special event in Forest City Marina Hotel on Friday (Sep 20), Malaysia’s Second Finance Minister Amir Hamzah Azizan said: “I am pleased to announce that Forest City will be the first location in Malaysia to offer a zero per cent tax rate for family offices.”
Family offices are private organisations set up to manage the wealth of one or multiple families.
He added that the scheme aims to attract regional and Malaysian families to manage their family wealth from Malaysia.
“Supported by good infrastructure, a competitive talent pool, robust common law practices and effective governance, opportunities abound for family offices,” said Mr Amir Hamzah.
“This scheme is aimed at being operational by the first quarter of 2025,” he added.
During a press conference after his speech, Mr Amir Hamzah explained that these companies will be subject to zero per cent tax when they file revenue of their transactions for 10 years.
He added that the incentives can then be extended if the family offices scale up investments and assets of their operations in Malaysia.
