SC ALUMNI
CONTACT
Careers@SC
About
BM version
Bm
Equity Crowdfunding and Peer to Peer Financing Tax Incentives​
  • ECF
  • P2P
  • ECF

    1. INTRODUCTION

    The ECF tax exemption is summarised in the table below.​

    Beneficiary Exemption Key requirements Tax order
    Qualifying individual investors​

    The exemption shall be:

    a) an amount equal to 50% of the totalinvestment made by the qualifying individual and shall not exceed fifty thousand ringgit for each year of assessment; and

    b) limited to 10% of the aggregate income of the qualifying individual in the basis period for a year of assessment in which the exemption is granted.
    • The investment made through ECF is not disposed of, either in full or in part, within 2 years from the date the investment is made.
    • The qualifying individual referred to shall invest in an investee company from 1 January 2021 to 31 December 2026.
    • Qualifying individuals referred to in individuals invest in an investee company in the form of holding shares which are paid in cash to the investee company through an

      i) equity crowdfunding platform;
      ii)       nominee company; or
      iii)       nominee limited liability partnership.

    INCOME TAX (EXEMPTION) (NO. 4) ORDER 2022​

    INCOME TAX (EXEMPTION) (NO. 4) ORDER 2022 (AMENDMENT) ORDER 2024
     

    2. HOW TO APPLY

    Prior to making tax exemption claims, applicants must obtain annual certification of investment from respective ECF operators. ​

    Steps:​

    1. Engage ECF operator for details on ECF tax exemption. Investor may be required to provide ECF operator with additional information and declaration. ​
    2. ECF operator would need to verify the information provided by investor. Once the information is verified, it will be submitted to the Securities Commission Malaysia (SC). ​
    3. The SC will verify the information provided by the ECF operator. ​
    4. ECF operator will provide investor with the annual certification of investment upon obtaining SC’s verification. Investor can use this certification when applying for the ECF tax exemption.

    3. FOR MORE INFORMATION

  • P2P

    1. INTRODUCTION

    The P2P Stamp duty is summarized in the table below. ​

    Beneficiary Exemption Key requirements Tax order
    Selected enterprises

    The exemption is:​

    a) subject to the condition that the P2P platform is operated by a P2P operator registered with the SC​

    b) applicable to an investment note or an Islamic investment note executed on or after 1 January 2022 but no later than 31 December 2026

    • Investment note or Islamic investment note for peer-to-peer financing

      i) executed by micro enterprises or small and medium enterprises; or​
      ii) executed between by micro enterprises, or small and medium enterprises and investors; or
      iii) a person authorised to act on behalf of investor

    • “Micro enterprise” or “small and medium enterprises” as determined by the National Entrepreneur and Small and Medium Enterprises Development Council
    • “Investment note” or “Islamic investment note” has the same meaning assigned to it under Capital Markets and Services
    		 Stamp Duty (Exemption) (No. 17) Order 2021 [P.U.(A) 487] ​



     

    2. FOR MORE INFORMATION

SC AFFILIATES
RELATED SITES
about the SC
The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). We are a self-funded statutory body entrusted with the responsibility to regulate and develop the Malaysian capital market.

General Line: +603-6204 8000
General Email: [email protected]
© Copyright Securities Commission Malaysia.  Contact Us   |    Disclaimer   |   The site is best viewed using Microsoft Edge and Google Chrome with minimum resolution of 1280x1024
Ooops!
Generic Popup