Company: VCIG
Filing Date: 2025-05-13
Form Type: 20-F
Source: 0001213900-25-042476
Chunk: 56

Company: VCI Global Ltd
Filing Date: 2025-05-13
Form: 20-F
Item: Item 4A
Chunk 56
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500,684 (USD4,362,179) in fiscal year 2024. The increase was mainly attributable          
            to: (i) Loss on derecognition of subsidiaries amounting to MYR1,786,102 (USD399,540), (ii) Higher marketing expenses of MYR3,457,554 (USD781,500)  
            to expand customer reach and enhance brand awareness, and (iii) Increased staff welfare expenses of MYR2,151,948 (USD486,049), primarily           
            due to the purchase of Directors’ and employees’ medical insurance, as well as company events, including overseas trips and                        
            other celebrations.                                                                                                                                
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We expect our overall operating costs, including
marketing expenses, salaries, and professional and business consulting expenses, to continue to increase in the foreseeable future, as
we plan to hire additional personnel and incur additional expenses in connection with the expansion of our business operations.

Provision for Income Taxes

Our provision
for income taxes was MYR182,847 (USD40,902) in fiscal year ended December 31, 2024, primarily due to the under provision of income tax
of MYR619,698 (USD135,031) in fiscal year 2023. For the subsidiaries that are incorporated in Malaysia, they are governed by the income
tax laws of Malaysia. The income tax provision in respect of operations in Malaysia is calculated at the applicable tax rates on the taxable
income for the periods based on existing legislation, interpretations, and practices. Under the Income Tax Act of Malaysia, enterprises
incorporated in Malaysia are usually subject to a unified 24% enterprise income tax rate, while preferential tax rates, tax holidays,
and tax exemptions may be granted on a case-by-case basis. The tax rate for small and medium sized companies (generally companies incorporated
in Malaysia with paid-in capital of MYR2,500,000 or less, and gross income of not more than MYR50 million) is 15% for the first MYR150,000
(or approximately USD37,500) taxable income, continuously by 17% for the MYR150,001 (or approximately USD37,501) to MYR600,000 (or approximately
USD150,000) taxable income for the fiscal years ended December 31, 2024 and 2023, with the remaining balance