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Published: Friday September 28, 2012 MYT 7:25:00 PM
Updated: Saturday September 29, 2012 MYT 12:29:03 AM

Budget 2013: Review of tax incentives for angel investors


KUALA LUMPUR: The government is making it more attractive for more angel investors to provide funding to venture companies, in its review of the qualifying criteria.

Under the Budget 2013 proposals, the total investment by an angel investor in a venture company can be allowed as a deduction against all income.

However, the angel investor must not be associated with the venture company before the investment was made.

The investor must be a tax resident with an annual income of not less than RM180,000.

Also he or she must hold at least 30% of the shares in the venture company for at least two years while the shares must be paid in cash.

As for venture companies, the criteria is that 51% of the share in company must be owned by a Malaysian.

The accumulated profit must not be more than RM5mil and there must be a track record of less than three years.

The effective date for applications received by the Ministry of Finance is from Jan 1, 2013 to Dec 31, 2017.

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