Malaysia Hotline: +603- 2141 8908
In
Malaysia, tax incentives are classified as direct and indirect. The direct tax
incentives grant partial or total relief from income tax payment for a
specified period, while indirect tax incentives are in the form of exemptions
from import duty, sales tax and excise duty.
The
direct or indirect tax incentives are provided for in the Promotion of
Investments Act 1986, Income Tax Act 1967, Customs Act 1967, Sales Tax Act
1972, Excise Act 1976 and Free Zones Act 1990. These Acts cover investments in
the manufacturing, agriculture, tourism (including hotel) and approved services
sectors as well as R&D, training and environmental protection activities.
The
major tax incentives for companies investing in the services sector are the
Pioneer Status and the Investment Tax Allowance.
i.Malaysia Investment Incentives
Pioneer Status
A
company granted Pioneer Status enjoys a five year partial exemption from the
payment of income tax. It pays tax on 30% of its statutory income*, with the
exemption period commencing from its Production Day (defined as the day its
production level reaches 30% of its capacity).
Unabsorbed
capital allowances as well as accumulated losses incurred during the pioneer
period can be carried forward and deducted from the post pioneer income of the
company.
*
Statutory Income is derived after deducting revenue expenditure and capital
allowances from the gross income.
ii. Malaysia Investment Tax
Allowance
As an
alternative to Pioneer Status, a company may apply for Investment Tax Allowance
(ITA). A company granted ITA is entitled to an allowance of 60% on its
qualifying capital expenditure (factory, plant, machinery or other equipment
used for the approved project) incurred within five years from the date the
first qualifying capital expenditure is incurred.
The
company can offset this allowance against 70% of its statutory income for each
year of assessment. Any unutilized allowance can be carried forward to
subsequent years until fully utilized. The remaining 30% of its statutory
income will be taxed at the prevailing company tax rate.
iii.Malaysia Investment of Incentives for the Services Sector
•
Incentives for Tourism Industry
•
Incentives for Mine Wellness City Developer, Manager and Operator
•
Incentives for Environmental Management
•
Incentives for Research and Development
•
Incentives for Medical Devices Testing Laboratories
•
Incentives for Training
•
Incentives for Approved Service Projects
•
Incentives for Integrated Logistics Services
•
Incentives for Cold Chain Facilities
•
Incentives for Gas and Radiation Sterilization Services
•
Incentives for Operational Headquarters
•
Incentives for International Procurement Centers/Regional Distribution Centers
•
Representative Offices and Regional Offices
•
Incentives for Treasury Management Centre (TMC)
•
Incentives for Providers of Industrial Design Services In Malaysia
•
Incentives for Private and International Schools
• Other
Related Incentives
Contact
us
If
you have further queries, please contact Tannet
24
hours Malaysia hotline：603-21418908;
24
hours Hong Kong hotline：852-27837818;
24
hours Hong Kong hotline：86-755-
36990589;
Email:
mytannet@gmail.com
TANNET GROUP : http://www.tannet-group.net, http://en.tannet.com.my