1MDB on 10-year tax holiday from 2010, says ministry

1mdb_newKUALA LUMPUR: 1MDB has been exempted from paying income tax including dividends for a period of 10 years since 2010, the Finance Ministry has said.

The ministry said the exemption was granted under Section 127(3A) of the Income Tax Act 1967.

“The exemption also includes real property gains tax (but) does not include 1MDB subsidiary companies such as Edra, which was acquired in 2010,” it added in a reply to Er Tech Hwa (DAP-Bakri) in the Dewan Rakyat today.

Er wanted the ministry to state the number of local and foreign employees with 1MDB in 2013 till 2017 as well as company taxes and business tithes paid from 2013 to 2017.

The ministry said Edra had paid tax in Malaysia and abroad since 2013 – RM199,058,000 in 2013; RM212,911,000 in 2014; and RM259,168,000 in 2015.

No taxes were paid since 2016 after Edra was sold off, the ministry said.

Edra Global Energy Bhd, 1MDB’s power assets subsidiary, was sold to China General Nuclear Power Corporation for RM9.63 billion cash in March 2016.

Regarding its number of staff, the ministry said 1MDB had 72 employees including a foreigner in December 2013 after which staff count increased to 77 and included two foreigners in December 2014.

After a rationalisation plan was implemented, 1MDB trimmed its employees to an all-Malaysian staff of 35 in 2015, 17 in 2016 and 16 this year, it said.