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01
What an Investment Holding Company is
An IHC usually earns from holding investments rather than selling products or providing active services. The proportion of gross income derived from investments is a key indicator.
02
Is a property rental company always an IHC?
Not necessarily. If the company merely rents out property and does not actively provide comprehensive maintenance or support services, it may be closer to investment holding. Active management services require a closer review of facts.
03
Listed and non-listed IHC
Listed investment holding company
Usually treated as a business source with deductions subject to applicable rules.
Non-listed investment holding company
Expense deductions may be restricted and need to be reviewed under IHC rules.
04
Think before forming a holding company
Property, shares, IP or group assets.
Rental, dividends, interest, management fee or operating income mix.
Bank loans, shareholder loans, interest and guarantees.
Asset sale, share transfer, RPGT or CGT impact.
05
Official sources and disclaimer
This guide is for general educational purposes only and is not tax advice. Tax rates, deductions, filing deadlines and incentive eligibility may change and depend on each company's facts. Please consult a tax professional or refer to the latest LHDN guidance before making decisions.