The Angel Tax Incentive is designed to encourage more angel investments from the private sector into early stage companies in technology space. As such, ATIO’s role is to ensure that start-ups seeking investments from accredited angel investors are eligible and that investments made into these companies are genuine. The Angel Tax Incentive is designed to bridge the early stage investment gap by encouraging qualified individual investors to invest in early stage technology start-ups in Malaysia, to boost the growth of start-ups.
Manual application by submitting the Application Form. Download the application form as per link below : https://www.cradle.com.my/products/angel-tax-incentive/
- Accredited angel investors who invested in a certified technology-based start-ups (Investee Company).
- There must be NO familial ties between angel investor and investee.
- The investment must be for the sole purpose of financing activities as approved by the Ministry of Finance, Malaysia.
- Accredited Angel Investor must hold investment for a period of two years before claiming for tax exemption. Year1:Invest Year2:Claim tax deduction (during filing of tax returns for year 2)
- Investments should not be disposed off within two years from the date of investment.
- Accredited angel investors must not hold more than 30% of the issued share capital of the Investee Company.
- Investments below RM5,000 are not eligible for the tax incentive. Claims can only be made up to the maximum of RM500,000.
- All investment must be made in cash, in full and not in kind and there must be no obligation by the investee to pay back angel investors.
- Shareholding must reflected in the Shareholders’ agreement or any other relevant documents acceptable at Cradle’s discretion.
- Share issued to the Accredited Angel Investor must be in the form of ordinary shares only.