Malay | English
White Black Red Blue disable_green A+ A A-


Featured Company
“...Pahang offers very competitive pricing in terms of infrastructure costs...”
Contact Us
Contact Us
Interested to Invest in Pahang?
Register your interest


Please use our Online Help.

Online Help operation hours: 11.00 am - 1.00 pm & 3.00 pm - 5.00 pm (Mondays - Fridays except for public holidays).

Incentives for Small and Medium-scale Companies


Print Email

Small and medium-scale companies with a paid-up capital of RM2.5 million and below are eligible for a reduced corporate tax of 20% on chargeable incomes up to RM500,000. The tax rate on the remaining chargeable income is maintained at 26%.

Small-scale manufacturing companies incorporated in Malaysia with shareholders’ funds not exceeding RM500,000 and having at least 60% Malaysian equity are eligible for the following incentives:

1 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
2 Investment Tax Allowance of 60% (100% for promoted areas) on the qualifying capital expenditure incurred within 5 years. The allowance can be 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.


A sole proprietorship or partnership is eligible to apply for this incentive provided a new private limited/limited company is formed to take over the existing production/activities.

In order to qualify for the incentive, a small-scale company has to comply with one of the following criteria:

1 The value-added must be at least 15%; or
2 The project contributes towards the socio-economic development of the rural population

The company shall carry out the manufacture of products or participate in activities listed as promoted products and activities for small-scale companies.

Applications for this incentive should be submitted to the Malaysian Investment Development Authority (MIDA).

See: Promoted Activities  Products for Small-scale Companies (PDF: 56kb)


Bookmark and Share
 

Disclaimer: The Government and PKNP shall not be liable for any loss or damage caused by the usage of any information obtained from this portal.
Best viewed using IE 8 / Mozilla 3.0 or better in 1024 x 768 resolution