Incentives for Relocating Manufacturing Activities to Promoted Areas
In order to reduce the costs of doing business and to provide a competitive business environment, existing companies which relocate their manufacturing activities to the promoted areas 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 100% on the qualifying capital expenditure incurred within a period of 5 years. 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).