TAX BENEFIT FROM UNIT TRUST

TAX BENEFIT FROM UNIT TRUST

INTRODUCTION
THE TAXATION OF UNIT TRUSTS
SECTION 61 – THE INCOME TAX ACT, 1967 (“the Act)

INCOME OF UNIT TRUST DIVIDED INTO
1) DIVIDEND
2) INTEREST OF PROFIT GAIN FROM SALES OF INVESTMENT
3) RETURN OF BONDS

IMPORTANT
GAINS OF DISPOSAL OF INVESTMENT – WILL NOT BE SUBJECT TO
INCOME TAX

REASON
MALAYSIA GOVERNMENT’S EFFORTS TO PROMOTE UNIT TRUST,
MOST INCOME RECEIVED BY UNIT TRUST WILL BE EXEMPT FROM
INCOME TAX.

EXEMPT INCOME
1) SECURITIES OR BONDS ISSUED OR GUARANTEED BY THE
GOVERNMENT
2) DEBENTURES, OTHER THAN CONVERTIBLE LOAN STOCKS,
APPROVED BY THE SECURITIES COMISSION
3) BON SIMPANAN MALAYSIA ISSUED BY BANK NEGARA MALAYSIA

TAX BENEFIT OF UNIT TRUSTS PASSED ON TO UNITHOLDERS
TAX-EXEMPTED INCOME WILL BE DISTRIBUTED TO UNIT HOLDER &
UNIT HOLDERS WILL NOT BE SUBJECT TO INCOME TAX

IMPORTANT: FD VS UT
IF CORPORATE INVESTOR WERE TO DEPOSIT FUNDS IN FD –
INTEREST OF FD WILL BE SUBJECT TO INCOME TAX AT NORMAL CORPORATE RATE INCOME TAX – 28%

THEFORE, MORE BENEFICIAL FOR THE INVESTOR TO INVEST IN THE UNIT TRUST SINCE CERTAIN INCOME
FROM THE SAME TYPE OF INVESTMENTS WOULD BE TAX EXEMPTED.

Warm regards n at service,
ANUAR ASPURI
UNIT TRUST CONSULTANT
019-7646651