What is an investment holding company and is it taxed differently?
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.
Statutory figures: 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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