Manulife Malaysia Equity Fund - Manulife Insurance Berhad

(c) Bon Simpanan Malaysia issued by Bank Negara Malaysia.
Interest income derived from the following investments are exempt from tax: -
(a) Interest paid or credited by any bank or financial institution licensed under the
Banking and Financial Institutions Act 1989 or the Islamic Banking Act 1983;
and
(b) Bonds, other than convertible loan stocks, paid or credited by any company
listed in Malaysia Exchange of Securities Dealing and Automated Quotation
Berhad.
The interest income or discount exempted from tax at the Fund level will also be
exempted from tax upon distribution to the Unit Holders.
- Foreign Investments
Income of the Fund in respect of overseas investment is exempt from Malaysian
tax by virtue of Paragraph 28 of Schedule 6 of the Act and distributions from such
income will be tax exempt in the hands of the Unit Holders. Such income from
foreign investments may be subject to foreign taxes or withholding taxes. However,
any foreign tax suffered on the income in respect of overseas investment is not tax
refundable to the Fund.
Tax Allowable Expenses
Expenses wholly and exclusively incurred in the production of gross income are
allowable as deductions under Section 33(1) of the Act. In addition, Section 63B of
the Act provides for tax deduction in respect of managers’ remuneration, expenses
on maintenance of the register of Unit Holders, share registration expenses,
secretarial, audit and accounting fees, telephone charges, printing and stationery
costs and postages based on a formula subject to a minimum of 10 per cent and a
maximum of 25 per cent of the expenses.
Real Property Gains Tax
With effect from 1 April 2007, any gains on disposal of real properties or shares in
real property companies would not be subject to real property gains tax pursuant
to the exemption granted under the Real Property Gains Tax (Exemption) (No. 2)
Order 2007.
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