Dedicated to being your reliable partner in the Malaysian market, helping you successfully launch your journey to success in Malaysia.
Tax Incentives
In Malaysia, companies may enjoy a wide range of tax incentives under the Promotion of Investments Act 1986, Customs Act 1967, Excise Act 1976, and Free Zones Act 1990. These incentives target manufacturing, specific services, R&D, training, and environmental projects. Benefits include exemptions from import and excise duties, allowances, and tax deductions.
For businesses planning expansion or new factory setup, leveraging these incentives can significantly reduce initial investment and operational costs, thereby improving overall financial returns. Understanding and utilizing the right incentives can enhance competitiveness.
Malaysia offers two key tax incentives for manufacturing investments:
Pioneer Status (PS): Empowering Emerging Enterprises
Eligibility: Companies engaged in promoted activities or producing promoted products aligned with Malaysia’s industrial strategy.
Incentives
· 70% to 100% exemption on statutory income for 5 years.
· After the initial period, further 60% to 100% exemption for another 5 years
Additional Benefits
· Unutilized Capital Allowances: Carried forward for future deductions.
· Loss Carry forward: Accumulated losses during the PS period can be carried forward for deduction for up to 7 years post-incentive.
Investment Tax Allowance (ITA): Supporting Growth & Upgrades
Eligibility: Companies making capital investments for new projects, expansion, or modernization.
Incentives
· 60% allowance on eligible capital expenditure (e.g., plants, machinery, equipment).
· Allowance can be used to offset 70% of statutory income over a 5-year period.
Additional Benefits
· Unutilized allowances can be carried forward to subsequent years.
Our Services Include:
Tailored incentive evaluation
Identifying optimal policies based on your investment objectives
Application preparation & submission
Crafting compliant documentation to improve approval success
Government liaison & process optimization
Managing communications to streamline approval
Compliance management & strategic planning
Ensuring proper implementation for sustained benefits
Malaysia Office：Suite 1, Level 23, Menara KOMTAR, 80888 Ibrahim International Business District, Johor Darul Ta‘zim, Malaysia
Tel：+607 272 5827
E-mail：enquiry@fozl.sg
Follow Us