Malaysia Cold Chain Facilities
Investment in cold chain facilities or providing services for perishable agricultural produce such as fruits, vegetables, flowers, ferns, meat and aquatic products eligible for tax exemption up to 70% of statutory income or Investment Tax Allowance of 60% up to 5 years.
Companies providing cold chain facilities and services for perishable agricultural products i.e. fruits, vegetables, flowers, ferns,
meat and aquatic products are eligible for:
Type of Company
Incentive
New Company
Pioneer Status with tax exemption of 70% of statutory income for a period of
5 years;Unabsorbed pioneer losses after the end of pioneer period are allowed to be
carried forward for 7 consecutive year of assessments;
ORInvestment Tax Allowance (ITA) of 60% on the qualifying capital expenditure
incurred for 5 years;Unutilised allowances can be carried forward until fully absorbed.
Existing Company
(Company intend to reinvest in cold chain facilities for perishable agricultural produce)
(Company intend to reinvest in cold chain facilities for perishable agricultural produce)
- Pioneer Status with tax exemption of 70% of increased statutory income for
a period of 5 years; - Unabsorbed pioneer losses after the end of pioneer period are allowed to be
carried forward for 7 consecutive year of assessments;OR
- Investment Tax Allowance (ITA) of 60% on the additional qualifying capital
expenditure for 5 years; - Unutilised allowances can be carried forward until fully absorbed.
Eligible Company
Eligible Activities
- Must be Independent Service Provider (i.e the company conducts all of the cold chain activities on its own);
- At least 60% of the company’s revenue must be derived from the provision of cold room facilities, refrigerated transportation and other related services for local agriculture produce.
- Provision of cold room facilities or refrigerated transportation for local agricultural produce with or without other post-harvest activities including cleaning, washing, grading, freezing/chilling and packing;
- Provision of cold room facilities or refrigerated transportation for local processed food products.
