Iskandar Malaysia - Incentives
Iskandar Malaysia, which lies in the state of Johor is enjoying an influx of multiple industry moving to a safe heaven. It is one of the most business friendly state in Malaaysia, where doing business is the order of the day, and very much bereft of unecessary political and religious interference from certain quaters. You are therefore assured of a good business journey achieving success at the end of the day. This assurance is given by no less the Sultan himself who now enjoys the trust of his subjects. You will be in good company whether it rains or shine.
Presently, tax incentives are given to businesses located in Medini (financial), Danga bay (tourism), Pinewood Studio (creative projects) and Vantage Bay (healtcare).
Additionally, the prime minister had also anounced that starting May 2014, Companies newly investing more than 10 million ringgit, excluding land costs, in the services sector may qualify for corporate tax exemption for five years, as well as import and sales duty incentives for certain machinery and equipment. There will also be flexibility from full compliance with the central bank's foreign exchange rules and recruitment of foreign knowledge workers.
Besides, projects which are strategic and/or catalytic to the development of Iskandar Malaysia and which can bring extensive economic linkages can be considered for a customized package of incentives based on the merits of each project.
Companies undertaking activities in sectors other than the targeted sectors will continue to be eligible for the current incentives that exist in the country.There also existing incentives given by:-
Ministry of International Trade and Industry (MITI) and Malaysian Industrial Development Authority (MIDA) for the Electronic and Electrical sector
MITI/MIDA for the Petro and Oleo Chemicals
MITI/MIDA and the Ministry of Agriculture for Food and Agro Processing
MITI/MIDA for Logistics Services
MITI/MIDA for Tourism Industries
MITI/MIDA and the Multimedia Development Corporation (MDec) for Educational services
Breakdown of incentives given by the above Ministeries and Authorities are as follows:-
For Food, Agro Processing, Electricals, Electronics, Oleo and Petro Chemicals
General-5 year pioneer status and 70% income tax exemption plus 60% for investment tax allowance
High Tech projects-5 year pioneer status and 100% tax exemption plus 60% for investment tax exemption
Strategic Projects-10 years pioneer status and 100% tax exemption plus 100% tax exemption for 5-10 years
There are also tax incentives for companies that qualifies under the MSC Malaysia status platform.
If you are not sure of the incentives given for the Iskandar Development Region or have pertinent questions relating to incentives, feel free to call us at +6074342601 or email us for support.