{"id":5153,"date":"2023-03-29T21:04:07","date_gmt":"2023-03-29T13:04:07","guid":{"rendered":"https:\/\/ancgroup.biz\/?p=3846"},"modified":"2023-03-29T21:04:07","modified_gmt":"2023-03-29T13:04:07","slug":"public-ruling-no-7-2022","status":"publish","type":"post","link":"https:\/\/ancgroup.biz\/cn\/public-ruling-no-7-2022\/","title":{"rendered":"Public Ruling No. 7\/2022 : Venture Capital Tax Incentives"},"content":{"rendered":"
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Public Ruling No. 7\/2022 : Venture Capital Tax Incentives<\/a><\/strong><\/span><\/h4>\n<\/div>\n<\/div>\n
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The objective of Public Ruling No. 7\/2022 is to explain the tax incentives in relation to the venture capital industry in Malaysia.<\/p>\n

A Venture Capital Companies (\u201cVCC\u201d) means a company that is:<\/strong><\/span><\/p>\n

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  1. Incorporated under the Companies Act 2016 to obtain funds from investors (equity capital) or loan capital, which is invested in one (1) or more than one (1) Venture company (\u201cVC\u201d) in the form of seed capital financing, start-up financing, or early stage financing;<\/li>\n
  2. Registered with the Securities Commission Malaysia (\u201cSCM\u201d); and<\/li>\n
  3. Verified by the SCM that the company has complied with the qualifying conditions under P.U.(A) 115\/2022 or P.U.(A) 117\/2022.<\/li>\n<\/ol>\n
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    A VC means a company that is:<\/strong><\/span><\/p>\n

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    1. Incorporated under the Companies Act 2016;<\/li>\n
    2. Resident in Malaysia in the basis year for a YA; and<\/li>\n
    3. Involved in utilising seed capital financing, start-up financing or early stage financing for the following: (i) Activities or products promoted under the Promotion of Investment Act 1986 where a VC has been granted tax incentives such as pioneer status or investment tax
      \nallowance;
      \n(ii)\u00a0 Technology-based business activities as specified in the Venture Capital Tax\u00a0 Incentive Guidelines issued by the SCM;
      \n(iii) Products or activities which have been developed under the research and development scheme, approved by the Ministry of Science, Technology and Innovation;
      \n(iv) Products, services or activities which have been developed under research, development and commercialisation grant schemes approved by Malaysia Digital Economy Corporation Sdn Bhd.<\/li>\n<\/ol>\n
      \n

      A Venture Capital Management Company (\u201cVCMC\u201d) means a company that is:<\/strong><\/span><\/p>\n

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      1. Incorporated under the Companies Act 2016 to manage on behalf of a VCC the investments in securities of a VC in different business stages, i.e. seed capital, start-up or early stage financing;<\/li>\n
      2. Registered with the SCM; and<\/li>\n
      3. The purpose of tax exemption, has been verified by the SCM:
        \n(i)\u00a0\u00a0 To have an adequate number of full time employees in Malaysia; and
        \n(ii) To have incurred an adequate amount of annual operating expenditure in\u00a0 Malaysia, for each YA in which the VCMC is exempt from payment of income tax.<\/li>\n<\/ol>\n
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        The following definitions apply to the terms “seed capital financing”<\/strong><\/span>, “start-up financing”<\/strong><\/span>, and “early stage financing”<\/strong><\/span> that were previously mentioned:<\/p>\n

        \u201cSeed Capital Financing”<\/strong><\/span> refers to<\/p>\n