Malaysia Pioneer Status for Private International Schools

Malaysian Pioneer Status-Private International Schools


Under the Promotion of Investments Act 1986, pioneer status can be accorded to industries including:-


Private Schools-
i) Income tax exemption of 70% for a period of five years. 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; or
ii) Income tax exemption equivalent to Investment Tax Allowance of 100% on the qualifying capital expenditure incurred within a period of five years. The allowance to be offset against 70% of the statutory income for each year of assessment. Any unutilised allowances can be carried forward to subsequent years until fully utilised.

International Schools
i) Income tax exemption of 70% for a period of five years. 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; or
ii) Income tax exemption equivalent to Investment Tax Allowance of 100% on the qualifying capital expenditure incurred within a period of five years. The allowance to be offset against 70% of the statutory income for each year of assessment. Any unutilised allowances can be carried forward to subsequent years until fully utilised.

Applications must be in by 2015

Additional Incentives:-

i) Import duty and sales tax exemption for educational equipment; and
ii) Double deduction for overseas promotional expenses.

Effective dates for (c): i)For item (i), the incentive is effective for the applications received by 8 October 2011
ii) For item (ii) applications are eligible for the incentive with effect from the year of assessment 2012. Claims should be submitted to the IRB.