KUALA LUMPUR: The Malaysian government has announced that there will be no capital gains tax (CGT) and taxes on foreign sourced income (FSI) on unit trusts.

       The exemption on FSI takes effect from Jan 1, 2024, until Dec 31, 2026, while the exemption on CGT is effective from Jan 1, 2024, to Dec 31, 2028.

       "This is to ensure that the rakyat will continue to benefit wholly from the gains of their hard-earned money, and invest for their future," said Finance Minister II Datuk Seri Amir Hamzah Azizan in his keynote speech at the launch of Bursa Malaysia as a multi-asset exchange.

       The CGT was introduced by the government in Budget 2024, which focused on gains from the disposal of unlisted shares by companies.

       The disposals of listed shares and disposals by individuals are not subject to CGT.

       However, Amir Hamzah said the government decided on the exemptions after realising through its various engagements that the CGT had an unintended impact on unit trusts, for which 90% of unit trust holders are individuals.

       At the same event, Amir Hamzah also launched three new investment platforms by Bursa Malaysia - Bursa Gold Dinar, MyBursa and Bursa Reach - which he said were designed to "bridge the inequality in financial inclusion and market information".

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