null Incentives for Islamic Banking
Incentives for Islamic Banking
22 Oct 2018 | Monday
- 10 year tax holidays on income earned from the Islamic banking business conducted in foreign currencies byInternational Islamic Banks and International Currency Business Units of a licensed institution, namely the commercial banks, investment banks and Islamic banks from years of assessment 2007 until 2016.
- 10 year stamp duty exemption on instruments executed pertaining to Islamic banking activities in foreign currencies undertaken by International Islamic Banks and International Currency Business Units from years of assessment 2007 until 2016.
- Tax exemption on any profits paid out by Islamic banks to non-resident companies/institutions for deposits placed at the banks.
- 20% stamp duty remission on Islamic finance instruments as approved by BNM & SC from 2 Sept 2006 until 31 December 2015.
- Tax exemption for five consecutive years given to Islamic banks from payment of income tax in relation to sources of income derived from its overseas branch or investee company.Application for the approval of the branch or investee company to carry out banking business must be received by BNM between 3 September October 2006 until 31 December 2015 and approval for tax exemption shall be made by the company to the Minister. The branch or investee company shall commence Islamic banking business within two years from the date of approval issued by BNM.
- Tax exemption on any profits paid out by an Islamic bank to individual residents and non-resident depositors.
- Withholding tax exemption on income received by non-resident experts in Islamic finance.
Relaxation of Foreign Ownership Rules
Up to 100% foreign equity ownership in the establishment of International Islamic Bank (IIB).
Flexible Employment Rules
- Banking institutions and takaful operators (including International Islamic Bank, International Takaful Operator and International Currency Business Unit) have flexibility to employ expatriates with expertise to contribute to the development of Islamic financial system in Malaysia.
Facilitative Immigration Policies
- Fast and easy immigration approval through the "Green Lane" established for expatriates and their immediate family members.