KUALA LUMPUR: The Ministry of Finance is aware and will further study the proposal to extend the Capital Gains Tax (CGT) exemption to companies not listed on Bursa Malaysia.
Deputy Finance Minister Lim Hui Ying said so far there are only four CGT exemptions that will be given, such as the disposal of unlisted shares for business activities, such as initial public offerings (IPOs); restructuring of companies in the same group (internal restructuring); venture capital companies; and unit trusts.
“Currently, these are the four groups exempted from CGT…we will study further,” she told the Dewan Rakyat today in response to a question from Ahmad Fadhli Shaari (PN-Pasir Mas) who suggested that the government further extend the CGT exemption to companies that are not listed on the stock exchange to provide more buffers to the owners of unlisted shares.
With the implementation of CGT from March 1, 2024, the government is projecting an additional revenue of around RM800 million per year based on the trend of share ownership over the past few years.
As a result of a discussion session with capital market industry players regarding the effect of CGT on the distribution of profits to unit holders, the government has agreed to exempt unit trusts from CGT with effect from Jan 1, 2024 until 31 Dec 31, 2028.
The government also exempts CGT on profits from the disposal of foreign capital assets by unit trusts remitted to Malaysia. – Bernama
