Mutual Benefit – Budget Report

Unit trust and mutual funds will be taxed once, and income will be tax free in the hands of the unit holders according to the latest budget proposal.rn

rnMutual funds that invest in specified areas will be taxed at only 10 per cent on interest and dividend income while others will be taxed at a rate of 20 per cent.rn

rnMeanwhile new venture capital funds will get a five-year tax holiday and investors will also get tax relief up to 30 per cent of assessable income.rn

rnMost of the existing venture capital funds are fully invested and the government wants fresh funds to kick start investments in new projects or to revive troubled ones.rn