Tuesday, 24 June, 2025

Malaysia to Offer 5% Tax Rate for Funds Investing in Local Startups—Boosting Venture Capital

Malaysia will introduce a 5% corporate tax rate for funds investing in local startups under its new Investment Incentive Framework, effective Q3 2025. High-value sectors like AI, quantum computing, and medical devices qualify. Knowledge workers in designated zones benefit from a 15% personal income tax. Additionally, the Johor–Singapore SEZ offers similar incentives to attract venture capital and support emerging tech ventures.