Malaysia Hotline: +603- 2141 8908
The
major tax incentives for companies investing in the manufacturing sector are
the Pioneer Status and the Investment Tax Allowance.
Eligibility
for Pioneer Status and Investment Tax Allowance is based on certain priorities,
including the level of value-added, technology used and industrial linkages.
Eligible activities and products are termed as "promoted activities"
or "promoted products".
(i) 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. Applications
for Pioneer Status should be submitted to the Malaysian Investment Development
Authority (MIDA).
(ii) 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. Applications should be
submitted to MIDA.
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