Najib: 1MDB paid RM671m in taxes since 2013


1Malaysia Development Bhd (1MDB) has paid RM671.137 million in company taxes since 2013, despite the state fund being granted 10 years of tax exemption since 2010.

Prime Minister Datuk Seri Mohd Najib Razak said the firm did not pay any tax for 2016 and 2017, as it had disposed of assets which were acquired after 2010.

Najib, who is also the finance minister, said 1MDB and its fully-owned units received income tax exemption including dividends for a 10-year period from 2010, in line with Section 127(3A) of the Income Tax Act 1967.

However, the exemption does not cover 1MDB’s other subsidiaries, which were formed or acquired after 2010 such as Edra Global Energy Bhd, he said in a written parliamentary reply, yesterday.

The tax exemption also does not include Real Property Gains Tax.

Najib was responding to Bakri MP Er Teck Hwa who had asked the government to state the total amount of tax paid by 1MDB between 2013 and 2017.

In 2013, 1MDB paid a total of RM199.06 million in taxes, while in 2014 and 2015, the fund paid RM212.91 million and RM259.17 million respectively.

“The company did not pay any tax in 2016 and 2017 as it sold Edra Global Energy Bhd last year,” said Najib.

Er had also asked for the number of employees hired by 1MDB in that period, and Najib said 1MDB had 72 employees in 2013, including one foreign worker, while in 2014, 1MDB had 77 employees including two foreign workers.

“In line with the company’s rationalisation plan, 1MDB had 35 employees in December 2015, 17 employees in December last year, and it currently has 16 employees,” he said.