Incentives for Takaful
22 Oct 2018 | Monday
Tax incentives are offered as follows:
Institutional
- 10 year tax holidays on income earned from the takaful businesses conducted in foreign currencies byInternational Takaful Operators and International Currency Business Units of the takaful operators from years of assessment 2007 until 2016.
- 10 year stamp duty exemption on instruments executed pertaining to takaful businesses conducted in foreign currencies undertaken by International Takaful Operators and International Currency Business Units from years of assessment 2007 until 2016.
- Tax exemption for five consecutive years given to takaful companies 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 takaful business shall be received by BNM on or after 24 October 2009 but not later than 31 December 2015 and approval for tax exemption shall be made by the company to the Minister. The branch or investee company shall commence takaful business within two years from the date of approval issued by BNM.
Personal
- Withholding tax exemption on income received by non-resident experts in Islamic finance.
Non-Tax Measures
Relaxation of Foreign Equity Ownership Rules
- Up to 100% foreign equity ownership in the International Takaful Operator (ITO).
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 in Islamic finance and their family members.
