KUALA LUMPUR (March 8): The sale of unlisted shares through an approved initial public offering (IPO) will not be subject to the proposed capital gains tax, according to Prime Minister Datuk Seri Anwar Ibrahim.
Speaking in his keynote address at Invest Malaysia 2023 titled “Reshaping Malaysia’s Narrative: Strengthening Resilience and Sustaining Growth”, Anwar noted that he is aware of the investing fraternity’s concerns over the government’s proposed capital gains tax on unlisted shares at a “low rate”.
“I [also] would like to give you the government’s commitment that the [capital gains] tax will only be finalised upon extensive engagement with stakeholders, [and] secondly, the tax will not be introduced on listed shares,” said Anwar, who is also the finance minister, on Wednesday (March 8).
"Thirdly, the disposal of unlisted shares for an approved IPO will also not be subject to the capital gains tax,” said Anwar.
In a nutshell, any individuals or companies selling shares in listed companies will not be subject to any new capital gains tax.
Meanwhile, for unlisted companies that intend to undertake a listing exercise, the existing shareholders who intend to sell their stakes by way of offer for sale in an IPO are not subject to the capital gains tax as well.
In a Budget 2023 speech last month, Anwar announced the proposal for the introduction of the capital gains tax on the sale of shares in private companies next year.