Tax cut for angel investors in start-up companies
Published on: Saturday, April 19, 2014
Kuala Lumpur: Angel investors in Malaysia have received a boost with the Government introducing a tax deduction of up to RM500,000 for investing in start-up companies.Malaysian Business Angel Network (MBAN) President Richard CM Wong said the tax deduction allowed angel investors to receive up to 100 per cent of their investment in one company or a cumulative investment of up to RM500,000 in a year."In a way, the Government is trying to mitigate the risk associated with the early stage investment by giving the tax deduction to investors, especially in technology space start-ups which are known to be risky in nature," he told reporters on the sidelines of the "MBAN Angels: Learning to Fly" forum, here, Friday.
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Apart from benefiting the angel investors, he said the tax also encouraged them to venture into start-up businesses and nurture it to succeed.He said angel investors can support the start-up business through investment and mentoring and help businesses to grow through networking.Wong said to be eligible as an angel investor and claim the tax deduction, interested investors must meet certain criteria, including a minimum monthly income of RM15,000 or a combined annual income with a spouse of at least RM250,000.He said investors also must invest a minimum of RM5,000 and not exceed 20 per cent of the total equity of the company while holding their stakeholding in the company for at least two years.
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Meanwhile, on the development of the MBAN, he said the organisation is aiming to woo 50 more members this year, adding to the more than 20 registered with it as of last year.Stay up-to-date by following Daily Express’s Telegram channel.
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The two-day event brought together speakers who are experienced angels investors from Asia and Europe, as well as aspiring angel investors and entrepreneurs who came to learn more about angel investing. - Bernama
