0% corporate tax rate for Family Offices under the Single-Family Office (SFO) Scheme for up to 20 years.

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Corporate tax rates between 0% and 5% for eligible businesses operating in the FCSFZ.

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A 15% flat income tax rate for knowledge workers and Malaysians employed in the zone.

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5% tax rate for global business services, financial technology, and foreign payment system operators.

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Special tax incentives for banking institutions, insurance companies, and capital market intermediaries, including:

• Deductions on relocation costs.

• Enhanced industrial building allowances.

• Withholding tax exemptions.

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Bank Negara Malaysia will offer regulatory flexibilities to foreign banks operating within the zone. These include:

• Permission to open additional branches within the FCSFZ.

• Foreign exchange flexibilities, allowing foreign banks to borrow and invest in foreign currencies more freely.

One of the most notable incentives is the Single-Family Office (SFO) Scheme, designed to attract wealthy families seeking to manage their investments efficiently in a tax-free environment. This scheme, coordinated by the Securities Commission Malaysia (SC), provides an opportunity for families to centralise their wealth management in Pulau Satu.

 

Under the SFO Scheme:

• Two wholly-owned entities must be established:

  • A Single-Family Office (SFO) to manage the family's investments and perform administrative tasks.

  • A Single-Family Office Vehicle (SFOV) to hold and manage the family's assets.