Forest City clarifies 5% fintech tax incentive
Forest City Special Financial Zone has clarified that its incentive for qualifying fintech and technology-enabled financial services is a 5% corporate tax rate rather than a blanket tax exemption, drawing a distinction between the Johor-based programme and Malaysia’s separate national digital incentives. The clarification sets out the eligibility framework for companies considering operations in…
Forest City has clarified that its fintech tax incentive offers a 5% corporate tax rate, not a complete tax exemption, distinguishing it from Malaysia’s national digital incentives. Eligible companies include fintech and technology-enabled financial services in Forest City’s Pulau 1, requiring at least one technology enabler like AI, big data analytics, or blockchain.
Applicants must be Malaysian companies with a minimum RM50,000 paid-up capital, conducting business in Pulau 1 and complying with employment, knowledge workers, expenditure, and environmental, social, and governance commitments. The incentive runs for 10 years, extendable with continued compliance. Processing is handled by Malaysia Digital Economy Corporation (MDEC), with approvals subject to national investment assessment.
The Forest City incentive is separate from Malaysia Digital Status and Malaysia Digital tax incentive. It offers a different structure for qualifying expansion investments compared to the national digital programme. The programme, unveiled in September 2024, supports Johor’s role as a competitive financial and services hub near Singapore.
Written by urgent.news from Arabian Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
