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A high technology company is a company engaged in promoted activities or in the production of promoted products in areas of new and emerging technologies.
A high technology company qualifies for:
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Pioneer Status with income tax exemption of 100% of statutory income for a period of 5 years. Unabsorbed capital allowances as well as accumulated losses incurred during the pioneer period can be carried forward and deducted from the post pioneer income of the company; or |
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Investment Tax Allowance of 60% (100% for promoted areas) on the qualifying capital expenditure incurred within 5 years from the date the first qualifying capital expenditure is incurred. The allowance can be utilised to offset against 100% of the statutory income for each year of assessment. Any unutilised allowances can be carried forward to subsequent years until fully utilised. |
Applications for this incentive should be submitted to the Malaysian Investment Development Authority (MIDA).
The high technology company must fulfil the following criteria:
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The percentage of local R&D expenditure to gross sales should be at least 1% on an annual basis. The company has 3 years from its date of operation or commencement of business to comply with this requirement. |
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Scientific and technical staff having degrees or diplomas with a minimum of 5 years experience in related fields should comprise at least 7% of the company total workforce. |
See: List of Promoted Activities & Products – High Technology Companies (PDF: 53kb)
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