Lembaga Hasil Dalam Negeri Malaysia (LHDNM) released the Income Tax (Exemption) (No. 3) Order 2021 (Exemption Order), which is to take effect from the year of assessment 2021. The Exemption Order was gazetted on 23 April 2021.
Under the Exemption Order, the Minister exempts any person from the payment of income tax in the basis period for a year of assessment in relation to gains or profits derived, in lieu of interest, from the sukuk wakala.
The Exemption Order shall apply to sukuk wakala of nominal value of up to one billion and three hundred million United States Dollars (US$1,300,000,000.00), other than convertible loan stock, issued in accordance with the principle of Wakala by Malaysia Wakala Sukuk Berhad.
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