# What is an investment holding company and is it taxed differently?
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## What is an investment holding company and is it taxed differently?

Last updated: 15 October 2026 Answer from Robo Company Secretary How we write answers

An investment holding company derives its income mainly from investments — rent, dividends, interest — rather than trading. Malaysian tax rules treat IHCs distinctly: expense deductions are restricted, and the SME preferential rates may not apply in the same way. If you're incorporating specifically to hold assets, the structure should be designed around that.

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Sources: Income Tax Act 1967 LHDN IHC guidance

Also asked as: IHC malaysia tax; syarikat pegangan pelaburan; holding company income tax malaysia; investment holding company rules.

Tell us the purpose at incorporation. A company set up as a trading vehicle and later used purely to hold assets often ends up in a less efficient position than one structured for the job from the start.

### Key facts

- Income mainly from investments, not trading
- Restricted expense deductions; SME rate treatment differs
- Design the structure around the purpose

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