0% Corporate Income Tax Rate up to 15 years For Foreign Direct Investment (FDI) into Malaysia

Key Takeaway

0% corporate income tax rate up to fifteen (15) years for Foreign Direct Investment (FDI) into Malaysia.

Beneficiaries

Foreign Direct Investments

Investment Quantum

Minimum RM300 million (USD70 million*)

Timeline

Applications made from 1 July 2020 to 31 December 2021

Tax Incentives For Company Relocating Into Malaysia

  1. 0% corporate income tax rate for 10 years for new investment in manufacturing sectors with capital investment between RM300 – RM500 million (USD70 – 116 million*);
  2. 0% corporate income tax rate for 15 years for new investment in manufacturing sectors with capital investment above RM500 million (USD116 million*);
  3. 100% Investment Tax Allowance for 3 years for eligible existing company in Malaysia relocating overseas facilities into Malaysia with capital investment above RM300 million (USD70mil*);

Conditions

For (i) and (ii), foreign companies must begin their operations within one (1) year from the date of approval and the investment amount has be achieved within a period of three (3) years.