Venture capital funds investing 20% in local startups get a 5% tax rate for 10 years, while registered VC and PE management firms enjoy a 10% tax rate.
Malaysia’s government has introduced venture capital tax incentives to encourage startup investments, as reported by the state news agency, Bernama, on 24 June 2025.
Qualifying venture capital fund entities investing at least 20% in local startups will enjoy a 5% concessionary tax rate for up to 10 years. Additionally, registered venture capital (VC) and private equity management (PE) companies registered with the Securities Commission will benefit from a 10% tax rate, subject to specific conditions.
“The new VC tax incentive extends to onshore limited liability partnerships, further broadening the investor base to deepen the capital pool for local startups,” said Finance Minister II Datuk Seri Amir Hamzah Azizan.
