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 Investment
Incentives
Page Updated : 31 July 2007
Reinvestment Incentives for the Resource-Based Industries
This incentive is offered
to companies that are at least 51% Malaysian owned in the resource-based
industries including the wood-based industries that have export potential.
Companies reinvesting for expansion purposes are eligible for Pioneer
Status or Investment Tax Allowance (ITA). Activities located in
Sabah, Sarawak and designated “Eastern Corridor” of Peninsular Malaysia
are eligible for higher level of exemption/allowance under Pioneer Status
or ITA in accordance with that given for promoted areas.
Incentives for Small and Medium Scale Companies
Effective from 21 May
2003, small-scale manufacturing companies incorporated in Malaysia with
shareholders’ fund not exceeding RM500,000 and having Malaysian equity
of at least 60% can obtained the following incentives:-
(i) Pioneer Status with
Income tax exemption of 100% or
(ii) Investment Tax Allowance
of 60% of the statutory income for each year of assessment.
Pre-Packaged Incentive for Forest Plantation Including Rubber Plantations
(on a case-by-case basis)
(i) Pioneer Status with
100% tax exemption for 15 years, commencing on the first year the company
registers profit; and
(ii) Investment Tax Allowance
of 100% for 10 years.
Group relief is extended
to the forest plantation including rubber plantations under the pre-packaged
scheme where a company is able to offset the losses incurred by the
plantation company from the profit of another company within the same
group.
Others Incentives Provided by MIDA
 Pioneer
Status
Investment
Tax Allowance (ITA)
Reinvestment
Allowance (RA)
Double
Deduction of Export Credit Insurance Premiums
Doule
Deduction of Promotion of Exports
Incentives
for Training
Incentives
for Restructuring
Strategic
Incentives for Forest Plantation Projects
Infrastructure
Allowance
Double
Deduction of Freight Charges
Drawback
of Custom Duties
Exemtion
from Custom Duty on Machinery, Equipment and Raw Materials
Tax
Exemption on the Value of Increased Exports
Projects Approved In 2005
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