Income Tax Deduction Proposed For Sukuk Prisma Issuance Costs
KUALA LUMPUR, Oct 12 (Bernama) -- Income tax deductions are proposed for the issuance cost of Sukuk Prisma approved or authorised by the Securities Commission Malaysia (SC) or lodged with SC for the assessment years 2027 to 2030.
In the 2027 Budget 2027 tax measures document, the Ministry of Finance (MoF) said the proposal aims to further strengthen Malaysia’s position as a global sukuk investment hub by providing innovative Shariah-compliant financing facilities with a sustainability focus.
According to the ministry, the SC will introduce Sukuk Prisma to expand the use of the capital market to attract sustainability-focused investments starting in 2027.
SC targets up to RM100 billion in investments over five years to finance sustainable projects that benefit the rakyat.
“These areas include, among others, climate change adaptation, water and food security, biodiversity resilience and the Blue economy,” it said.
The SC currently has a sustainable and responsible investment (SRI) Sukuk framework that enables companies to raise funds to enhance sustainability practices and support the transition towards low-carbon activities.
“Income tax deduction is given on Sukuk SRI issuance costs from years of assessment 2016 until 2027,” it added.
-- BERNAMA