Investment holding company enjoy tax rebate RM20,000 x 3 years ?

𝐖𝐡𝐲 𝐩𝐞𝐨𝐩𝐥𝐞 𝐛𝐮𝐲 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐯𝐢𝐚 𝐚 𝐒𝐝𝐧 𝐁𝐡𝐝 (𝐩𝐫𝐢𝐯𝐚𝐭𝐞 𝐥𝐢𝐦𝐢𝐭𝐞𝐝 𝐜𝐨𝐦𝐩𝐚𝐧𝐲)? 𝐏𝐚𝐫𝐭 𝟑

Client called us to ask whether they can enjoy tax rebate RM20,000 x 3 years on new incorporated sdn bhd as investment holding company which buy property solely.

Let's run through the terms and conditions on RM20,000 x 3 years tax rebate.

Share your thinking with us in the comment section on the eligibility on tax rebate RM20,000 x 3 years on investment holding company.

We will share our professional opinion in coming days.

PS : Term and condition of the tax rebate RM20,000 x 3 years

A rebate may be granted for a period of three consecutive years from the year of assessment in which a company or limited liability partnership first commences operation, in an amount equivalent to its operating or capital expenditure which it has incurred limited to a maximum amount of twenty thousand ringgits [RM20,000] for each of assessment
Where the total amount of the rebate under subsection (1) exceeds the income tax charged (before any such rebate) for any year of assessment, the excess shall not be paid to the company or limited liability partnership, or be available as credit to set off the tax liability of the company or limited liability partnership for that year of assessment or any subsequent year.
The company or limited liability partnership referred to in subsection (1) shall be a company or limited liability partnership resident and incorporated or registered in Malaysia-
Which has a paid-up capital in respect of ordinary shares or contribution of capital (whether in cash or in kind) of two million and five hundred thousand ringgit and less at the beginning of the basis period for a year of assessment;
Which has a gross income from source or sources consisting of a business not exceeding fifty million ringgits for the basis period for a year of assessment; and
Which has commenced operation on or after 1 July 2020 but not later than 31 December 2021.
The Minister may, by statutory order, impose such conditions as he thinks fit to give effect to or for carrying out the purposes of this section.
Where in a year of assessment the company or limited liability partnership fails to fulfil the conditions specified in subsection (3) or (4), the amount of rebate under subsection (1) shall not be granted for that year of assessment in which the failure occurs and in the subsequent years of assessment.