MALAYSIA GLOBAL SERVICES HUB TAX INCENTIVE
Global Services Hub tax incentive is an outcom-based incentives which uses a tiered rate in the provision of incentives on
service income, or service and trading income achieved.
Global Services Hub tax incentive is an outcom-based incentives which uses a tiered rate in the provision of incentives on
service income, or service and trading income achieved.
1. Overview Of The Incentive
An approved Global Services Hub company is eligible to enjoy the following concessionary corporate income tax rates:
Category
Concessionary Corporate Income Tax
Rate
Period of
incentive (Blocks
Years)
Type of income
exempted
A. New Company
Tier 1 : 0%
Tier 2 : 5%
Tier 2 : 5%
5 (+5)
(i) Services income;
or
(ii) Services and trading income
or
(ii) Services and trading income
B. Existing Company
Tier 1 : 5% on value added income
Tier 2 : 10% on value added income
Tier 2 : 10% on value added income
5
(i) Services income;
or
(ii) Services and trading income
or
(ii) Services and trading income
Preferential income tax rate of 15% be given for a period of 3 consecutive years of assessment limited to three (3) noncitizen individuals holding key/C-Suite positions with a monthly salary of at least RM35,000 in a new company approved with
Global Services Hub tax incentive
2. Qualifying Services and Additional Services
- Regional P&L / Business Management Unit;
- Strategic Business Planning;
- Corporate Development;
AND
- Any 2 qualifying activities under the services category as follows:
- Strategic services;
- Business services;
- Shared services;
- Other services.
3. Outcome-based conditions
- Annual operating expenditure;
- High value full time employees;
- C-suite with minimum salary of RM35,000;
- Locally ancillary services;
- Collaboration with higher education institution/TVET;
- Training for Malaysian students/citizen;
- Environmental. Social and Governance (ESG) elements; or
- Other conditions as determined by the Minister of Finance.
Application received by Malaysian Investment Development Authority (MIDA) from 14 October 2023 to 31 December
2027.
