Malaysia’s Deputy Finance Minister Amir Hamzah Azizan introduced proposed tax incentives during the announcement ceremony for the Forest City Special Financial Zone (SFZ) on 20 September 2024.
The Forest City is situated within the Iskandar Special Economic Zone in Johor. The government announced a competitive incentive package to attract international capital. These incentives include:
- A 0% tax rate for family offices established under the Single-Family Office Scheme;
- A concessionary corporate tax rate between 0% and 5% for companies operating within the SFZ, subject to conditions;
- A special individual income tax rate of 15% for knowledge workers and Malaysians working in the SFZ;
- Incentives such as special deductions on relocation costs, improved industrial building allowances, and withholding tax exemptions for financial companies in the SFZ;
- A reduced corporate income tax rate of 5% for global financial services providers, such as fintech and foreign payment systems
- Special tax deductions for relocation costs, enhanced industrial building allowances, and withholding tax exemptions for banking and insurance companies and companies in the financial sector.
