Manulife Malaysia Equity Fund - Manulife Insurance Berhad

The income of the Fund consisting of dividends, interest (other than interest which is
exempt from tax) and other investment income derived from or accruing in Malaysia,
after deducting tax allowable expenses, is liable to Malaysian income tax at the rate
of 25 per cent.
Gains on disposal of investments by the Fund will not be subject to income tax.
Tax Credit
Dividends received by the Fund would have suffered tax deduction at source at 25
per cent, unless specific exemptions apply e.g. pioneer dividends. No additional tax
will be payable by the Fund on the dividends. However, such tax or part thereof will
be refundable to the Fund if the total tax so deducted at source exceeds the tax
liability of the Fund.
With effect from 1 January 2008, Malaysia introduced the single tier system where
dividends paid by companies would not be taxable in the hands of the recipient.
Dividends received from companies that are under the single tier system would
be exempted from tax and the expenses incurred on such dividends would be
disregarded. There will no longer be any tax refunds for single tier dividends received.
However, during the transitional period from 1 January 2008 to 31 December 2013,
companies may still elect to maintain the imputation system where dividends paid
are taxed at source and tax credits available to recipients.
Exempt Income
- Domestic Investments
The Fund may receive Malaysian dividends which are tax exempt. The exempt
dividends may be received from investments in companies which had previously
enjoyed or are currently enjoying the various tax incentives provided under the law.
The Fund will not be taxable on such exempt income.
With effect from 1 January 2008, dividends received from companies under the
single-tier system would also be exempted.
Interest or discount income derived from the following investments is exempt from
tax: -
(a) Securities or bonds issued or guaranteed by the Government;
(b) Debentures, other than convertible loan stocks, approved by the Securities
Commission; and
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