Cradle Launches Angel Tax Incentives
KUALA LUMPUR, MALAYSIA – APRIL 2, 2013 – The angel investment aspiration for Malaysian technopreneurs has received further boost with the launching of Angel Tax Incentive today by Cradle Fund Sdn Bhd (Cradle), an agency under the Ministry of Finance.
Chief Executive Officer of Cradle, Nazrin Hassan was upbeat that the tax incentive for angel investors would stimulate the growth of technopreneurs within the pre-seed and start-up space.
“Angel investors will play a key role in funding Malaysian start-ups in the future. They will likely be the leading force in the private sector investment in technology companies, particularly in the early seed and start-up stages. The Angel Tax Incentive launched today, which provides qualified angel investors with a personal income tax exemption equivalent to the amount invested up to RM500,000 per annum, is intended to be the catalyst for angel investment to be encouraged and to grow the number of angel investors in Malaysia,” said Nazrin Hassan during the event launching.
The event was officiated by Yang Berbahagia Dato’ Dr Mohd Irwan Serigar Abdullah, the Treasury, Secretary-General, Ministry of Finance, Malaysia at Shangri-La Hotel today.
Cradle is asked to undertake the challenge of growing more angel investors and encouraging more angel investment locally. Angel investing is slowly gaining recognition in recent years and has now grown to be real source of capital for young companies.
During the National Budget 2013, YAB Dato’ Sri Mohammad Najib Tun Abdul Razak, the Prime Minister Malaysia had announced a tax incentive for angel investors which would allow for an angel investor to be accorded a tax relief to encourage more angel investments.
Angel Tax Incentive is administered by the Angel Tax Incentive Office (ATIO), a unit under Cradle. The investment made must be approached and endorsed by the Ministry of Finance, Malaysia. After two (2) years from the point of investment, the angel investors may file their personal income tax through Lembaga Hasil Dalam Negeri (LHDN), which then will process their income tax filling for tax exemption.
Nazrin emphasized that the angel investors do not just provide investment monies.