Announcement on the Forest City Special Financial Zone (FC-SFZ) Tax Incentive

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Dear Esteemed Clients,

We are pleased to announce the introduction of the Forest City Special Financial Zone (FC-SFZ) Tax Incentive for Fintech Related Activities, Financial Global Business Services, and Foreign Payment System Operators. This strategic initiative is part of a broader suite of incentives designed to position Forest City, Johor as a competitive international business hub by attracting businesses, financial institutions, high-net-worth individuals, and skilled talents. The incentive will support the growth of digital and financial services within the zone, capitalising on Malaysia's strategic location and investor-friendly ecosystem.

This tax incentive offers a special tax rate of 5% on the chargeable income derived from the approved qualifying activities, for a period of 10 years of assessment, extendable for an additional 10 years of assessment, subject to compliance of applicable conditions. This tax incentive is available to eligible companies undertaking any of the following qualifying activities:

  • Fintech-related Activities
  • Financial Global Business Services
  • Foreign Payment System Operators

Detailed information is accessible as follows:

  1. 1.Guidelines on FC-SFZ Tax Incentive
  2. 2.Frequently Asked Questions on FC-SFZ Tax Incentive

For further inquiries or assistance on the application, please contact our dedicated team at [email protected]

ISSUED BY MALAYSIA DIGITAL ECONOMY CORPORATION (MDEC) SDN. BHD.
13 MAY 2025