Family Office Incentive Scheme in Forest City Free Trade Zone (FCFTZ)
First location in Malaysia which provide 0% concessionary tax rate for family offices. This incentive is valid for an initial period of 10 years and an additional 10 years with further conditions.
Forest City Special Financial Zone (FCSFZ)
Following amendment bills were tabled and passed by House of Parliament in July 2024 and gazetted in Sept 2024, FCSFZ is first onshore duty-free zone and special financial zone in Forest City, Johor, Malaysia.
Pulau Satu, Forest City is the first location in Malaysia to offer a zero (0%) percent tax rate for Family Office established under the Single Family Office Scheme.
Pulau Satu, Forest City is the first location in Malaysia to offer a zero (0%) percent tax rate for Family Office established under the Single Family Office Scheme.
Single Family Office (SFO) & Single Family Office Vehicle (SFOV)
What is Single Family Office (SFO)?
- SFO is a corporate vehicle;
- Wholly owned or controlled by members of a single wealthy family;
- Created to exclusively manage the assets, investments and long-term interests of that family;
- SFO may also represent multiple generations and branches of the family.
What is Single Family Office Vehicle (SFOV) ?
- SFOV is a corporate vehicle;
- Wholly owned or controlled by members of a single wealthy family;
- Established solely for the purposes of holding the assets, investments and long-term interest of members of the single family.
SFO vs SFOV
Key Conditions on SFOVs Tax Incentives
SFOV must be incorporated in Malaysia, preregistered with the Securities Commission (SC), and
operating in Pulau Satu, FCSFZ to be eligible for zero (0%) Concessionary Tax Rate for first initial 10
years + additional 10 years. The below conditions are also required to be fulfilled during the incentive
periods.
Conditions
First 10 Years
Additional 10 Years
1. Minimum AUM
RM30Mil (*USD7Mil)
RM50Mil (*USD11.5Mil)
2. Minimum Domestic
Investment in Promoted
Activities
At least 10% of AUM or
RM10Mil (*USD2.3Mil),
whichever is lower
At least 10% of AUM or
RM10Mil (*USD2.3Mil),
whichever is higher
3. Minimum local operating
expenditure per annum
RM500,000 (*USD115,000)
RM650,000 (*USD150,000)
4. Minimum full time employees
Two (2) and each with a
minimum monthly salary of
RM10,000 and of whom at least
one (1) is an investment
professional.
Four (4)
*1 USD = 4.32740 MYR
