Malaysian Pioneer Status
Before you dwell into getting pioneer status, you should know that there are three types of pioneer statuses. You may apply through MIDA the conventional Malaysian Manufacturing Pioneer Status which will grant you a specified period (5 years) free of corporate tax. Then there are two other types of pioneer statuses - MSC Malaysia Status (10 years free of corporate tax) and BioNexus Status (10 years free of corporate tax). The former has got to do with Digital services and the later more to do with Biotechnology.
First, a little bit of what a Malaysian Pioneer Status is all about.
According to MIDA, eligibility for Pioneer Status is based on certain priorities, including the level of value-added, technology used and industrial linkages. Eligible activities and products are termed as "promoted activities" or "promoted products". Value-added, technology used and industrial linkages is in respect of how will it affect Malaysian Manufacturers and Malaysian Service Providers in their own way to help lift Malaysian Corporations to a newer level. Where technology is concerned, it might mean that a more advance technology (disruptive) is used to manufacturing or in most likelihood, a slightly improved methodology is used to increase manufacturing efficiencies (outputs). Where a slight improvement in technology is concerned, the applicant is adviced to also file for Utility Innovation for that particular improvement just as to support the application for pioneer status.
How do you go about applying for Malaysian Pioneer Status and what are they - the reason why you should apply for pioneer status is because you can save on paying the full amount of corporate tax. It is especially relevant for the present uncertain time where you cannot be certain for whether you can outlive the dangers of pandemic - or even the epidemic!
We are here to help you to obtain Malaysia Pioneer Status. As of 2020, you are entitled to apply for Malaysian Pioneer Status which will give you special Tax Incentives and Investment Tax Allowance in a promoted activity (either manufacturing or services) or producing a promoted product and has not started any production at the time of application.
Manufacturing - conditions
i) Malaysian ownership of at least 60%
ii) Malaysian-owned companies that are already in production not more than one year from the date of application received.
iii) Participating in a promoted activity or producing a promoted product
iv) The type of tax incentives and criteria such as Value added (VA), Managerial, Technical and Supervisory (MTS), R&D Expenditure and Science and Technology (S&T) indexes will remain at the prevailing rates.
New Manufacturing Project
Expansion and/or Diversification Project by a Licensed Manufacturer or by an Existing Non-Licensed Manufacturer
High Technology/Strategic Project for New Manufacturing Activities
High Technology/Strategic Project for Expansion and/or Diversification
Integrated Agricultural Project
Expansion and/or Diversification of an Existing Integrated Agricultural Project
Commercialisation of Public Sector R&D Findings in Resource Based Industry
Small Scale Manufacturing Company
Expansion and/or Diversification of a Small Scale Manufacturing Company
List of approved activities Approved Activities
International Procurement Center/Regional Distribution Center
Representative Office/Regional Office
Research and Development Activities
Integrated Logistic Services
Technical/Vocational/Science Training Institutes
Private Health Care Facilities
Providing Cold Chain Facilities
Other Services Promoted under the Investment Act 1986
Less Developed Areas Incentives
Application for duty exemption
Let us guide you if you are interested in the above applications
You might be interested in Malaysian Government Grants