MD Tax Incentive is a new outcome-based tax incentive scheme offered to eligible MD companies that undertake activity utilising any of the MD promoted tech enablers.
The outcome-based approach uses a tiered system in granting tax incentives, to encourage companies to spur the economy through investments in high-growth high-value areas and to create new economic clusters, expand domestic network, and provide balance between economic growth and environmental, social and governance sustainability.
This incentive scheme is designed to align with the international standards set by the Organisation for Economic Co-operation and Development (OECD).
Eligibility Criteria
To be eligible to apply for the New Investment Incentive, the applicant must be a company which:
is incorporated or deemed to be registered under the Companies Act 2016 and resident in Malaysia
has a minimum paid up capital of RM50,000.00 has made an application for the award of MD Status is proposing to undertake the qualifying activity in Malaysia has not issued any sales invoice for the qualifying activity in Malaysia prior to the date the tax incentive application is received, or has sixty per cent direct or indirect Malaysian equity ownership and has not issued any sales invoice for the qualifying activity in Malaysia more than twelve months prior to the date the tax incentive application is received is not granted any tax incentive by the Government of Malaysia in relation to the qualifying activity.Eligibility Criteria
To be eligible to apply for Expansion Incentive, the applicant must be a company which:
is incorporated or deemed to be registered under the Companies Act 2016 and resident in Malaysia has a minimum paid up capital of RM250,000.00 has been in operation for at least 36 months is an MD or MSC Malaysia Status company in the case where the company has been granted tax incentive for existing activity under the MD or MSC Malaysia Status financial incentive schemes, the company has met all conditions under the tax incentive or has surrendered the tax incentive is proposing to undertake the qualifying activity in Malaysia has not issued any sales invoice for the qualifying activity in Malaysia prior to the date the tax incentive application is received is not granted any tax incentive by the Government of Malaysia in relation to the qualifying activity.