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Malaysia FOREIGN DIRECT INVESTMENT (FDI) Guide (4) Tax Incentives for Foreign Investment- Pioneer Status

Malaysia FOREIGN DIRECT INVESTMENT (FDI) Guide (4) Tax Incentives for Foreign Investment- Pioneer Status

Malaysia welcomes foreign investments, particularly in the manufacturing sector, and does not discriminate against investors from any country.  To encourage foreign direct investment in Malaysia, government offers many incentives and other advantages to foreign investors and has entered into double taxation agreements with more than 40 countries.  Malaysia has investment guarantee agreements with most major industrialised countries.  These agreements generally guarantee that, except for public purposes, Malaysia will not expropriate or nationalise property without prompt and adequate compensation.

Tax incentives are provided under the Promotion of Investment Act 1986 and the Income Tax Act 1967.  The main incentives are as follows :-

•         Pioneer status

•       Investment tax allowance

•       Reinvestment allowance

•       Industrial adjustment allowance

•       Double deduction of expenses (given in respect of certain expenses if the conditions imposed are satisfied)

•       Approved agricultural projects incentives

•       Research and development incentives

•       Industrial building allowance

•       In bound tour operators incentives

•       Incentive for approved overseas investments

•       Incentives for overseas construction projects

•       Operational Headquarters Incentives

•       Labuan International Offshore Finance Centre

You are advised to seek consultation with a Malaysia Law Firm. Any further enquires, please contact us at consult@lylu.com.my

For consultation on the issue of foreign investment in Malaysia, please proceed to send in your enquiry by clicking here.

By : L Y Lu & Co.