Special Tax Incentive For Company Relocating into Malaysia
Special Tax Incentive For Company Relocating into Malaysia
Listed below are the tax incentives offered to new and existing foreign companies relocating their business
into Malaysia:-
Type of Company
Eligible Capital
Expenditure (RM)
Incentive
Incentive
Duration
1. New company
i. RM300 million to
RM500 million.
RM500 million.
Special tax rate
0%
10 years
ii. RM500 million
and above.
Special tax rate
0%
15 years
2. Existing company
Relocating overseas
facilities into
Malaysia with capital
investment above
RM300 million
Investment tax
allowance (ITA)
100%
5 years and is
offset against
100% statutory
income of the
activity.
Eligibility Criteria
Definition of new company
a) Company relocating manufacturing facility for eligible activities from
another country to Malaysia; or
b) Company establishing new operation in Malaysia; and
c) Do not have existing manufacturing operation in Malaysia.
b) Company establishing new operation in Malaysia; and
c) Do not have existing manufacturing operation in Malaysia.
Definition of existing company
Foreign or locally owned company that has existing manufacturing operation in
Malaysia and is relocating its manufacturing operations from outside Malaysia
for new business segment.
The products from the new business segment are not part of the expansion project for existing products.
The products from the new business segment are not part of the expansion project for existing products.
Conditions for this
incentive
a) To incur the capital expenditure (excludes land cost) within 3 years from
the date of the first capital expenditure incurred;
b) To incur the first capital expenditure within 1 year from the approval date; and
c) Company will be subjected to conditions related to the Employment and Vendor Development Program
b) To incur the first capital expenditure within 1 year from the approval date; and
c) Company will be subjected to conditions related to the Employment and Vendor Development Program
Promoted
manufacturing
activities
Manufacturing activities EXCEPT manufacturing activities as below:-
| Non Products / Activities | Industries |
|---|---|
| All products for iron & steel
considered sensitive except products
listed in the Promoted Activities /
Products Under the PIA 1986 under
the category of Manufacture of Iron
and Steel, and Manufacture of Non-
Ferrous Metal and their Products |
Iron & Steel |
| Weapon and ammunitions | Machinery & Equipment |
| Electricals products supplied to generate power for consumption of TNB and Petronas such as general cables, wire harness, distribution boards, control panels, switching apparatus, transformers | Electrical |
| Liquor and alcoholic beverages | Beverages & Tobacco |
| Tobacco and tobacco products including cigarette | Beverages & Tobacco |
| Palm Oil milling and refining | Palm Oil |
| Production of food products that only involve mixing, blending and cooking. Example: sauces, paste, premix food products | Food Manufacturing |
| Beverages | Beverages & Tobacco |
| Sugar | Food Manufacturing |
| Pineapple Canning | Food Manufacturing |
| Paper-based packaging materials from waste paper except for coated duplex board | Paper, Printing & Publishing |
| Wood-based products including furniture, plywood, sawn timber and others | Wood & Wood Products |
| Printing and Publishing | Paper, Printing & Publishing |
| Remanufacturing/ reconditioning/ reassembly of motor vehicles and related components | Automotive / Motor vehicle |
| Non-EEV | Automotive / Motor vehicle |
| Drones and rocket Aerospace related products for Military/Defense application (Non-commercial segment) | Aerospace for Military/Defense Application |
| Recycling of any types of waste | All |
| Refinery of crude petroleum oil | Petroleum |
| Passengers car tires | Rubber |
| General plastic products such as plastic bags, bottles | Plastic |
| Gloves | All |
Manufacturing of construction
material except for following
products:
|
Construction |
Textiles products except for
following activities:
|
Textile |
