Malaysia Pioneer Status application

Malaysian Pioneer Status

Under the Promotion of Investments Act 1986, small scale manufacturing companies (capitalization of not more than RM500,000) which fulfill certain criteria, are eligible for the following tax incentives to manufacture promoted products:

* Pioneer Status with full tax exemption for 5 years, or
* Investment Tax Allowance of 60% on qualifying capital expenditure incurred within 5 years, which can be offset against 100% of statutory income for each year of assessment.

Mandatory Criteria to obtain Pioneer Status

* The applying company must be incorporated in Malaysia
* At least 60% Malaysian shareholding
* Sole proprietorship or partnership must form a private limited company (Sdn Bhd) to take over production activities

Sectors that are eligible for pioneer status includes:-

* Tourism Industry
* Mine Wellness City Developer, Manager and Operator
* Environmental Management
* Research and Development
* Medical Devices and Testing Laboratories
* Training
* Approved Service Projects
* Integrated Logistics Services
* Operation Headquarters (OHQ)
* International and Regional Procurement/distribution Centers
* Treasury Management Center
* Representative and Regional Offices
* Providers of Industrial Design Services
* Private and International Schools
* Other Related Incentives

It must be emphasised that you should also file a patent for your system or product so that the approval body can view it in good light. But if you are wondering whether you are qualified for a patent, then contact our experts to look into your application. Moreover, with a patent in hand, you can go for government grants. Perhaps we can help.

PatentAgentip provides application services to the above stated industries. If you are interested, please send us an E Mail to register your intention.

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