Investment Holding Co - unlisted IHC comp

5 important questions on Investment Holding Co - unlisted IHC comp

How is permitted expenses calculated for an unlisted IHC?

It  is calculated as A x B / 4C or 5% x D I R (chargeable to tax).

What is the tax rate for an unlisted IHC?

The tax rate is the company's tax rate at 24%. Scale rate is not applicable because unlisted IHC does not derive any business income.

What are the components of PE for an unlisted IHC?

PE includes:
  • directors fee
  • wages, salaries & allowances, management fees
  • audit & accounting fee, secretarial, telephone, printing & stationery, postage
  • rent & maintenance of office
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What does B represent in the formula for permitted expense?

B represents D I R chargeable to tax.

What does C represent in the formula of permitted expense?

B + DIG

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