Kuala Lumpur:Income tax deductions are being proposed for the issuance costs of Sukuk Prisma, which are approved or authorized by the Securities Commission Malaysia (SC) or lodged with the SC, covering the assessment years from 2027 to 2030.
According to BERNAMA News Agency, the Ministry of Finance (MoF) outlined this proposal as part of the 2027 Budget tax measures. The initiative is designed to bolster Malaysia's status as a global hub for sukuk investments by offering innovative Shariah-compliant financing options with a focus on sustainability.
The SC plans to launch Sukuk Prisma in 2027 to leverage the capital market and attract investments geared towards sustainability. The commission aims to secure up to RM100 billion in investments over five years to fund sustainable projects that will benefit the public.
These projects will focus on areas such as climate change adaptation, water and food security, biodiversity resilience, and the Blue economy. Currently, the SC has a sustainable and responsible investment (SRI) Sukuk framework that helps companies raise funds to improve sustainability practices and transition towards low-carbon activities.
Income tax deductions are presently available for Sukuk SRI issuance costs for the assessment years from 2016 until 2027.