MALAYSIA GLOBAL SERVICES HUB TAX INCENTIVE
With Global Services Hub tax incentive, the companies will benefit from corporate income tax rates of 5% or 10% based on outcome for a period of up to ten (10) years. This incentive aims to establish Malaysia as a competitive hub in the global service sector in the region.
Global Services Hub tax incentive is an outcom-based incentives which uses a tiered rate in the provision of incentives on
service income, or service and trading income achieved.
1. Overview Of The Incentive
An approved Global Services Hub company is eligible to enjoy the following concessionary corporate income tax rates:
Category
Concessionary
Corporate
Income Tax Rate
Period of
incentive (Blocks
Years)
Type of income
exempted
A. New Company
Tier 1 : 0%
Tier 2 : 5%
Tier 2 : 5%
5 (+5)
(i) Services income;
or
(ii) Services and B Existing Company trading income
(ii) Services and B Existing Company trading income
B. Existing Company
Tier 1 : 5% on value added income
Tier 2: 10% on value added income
Tier 2: 10% on value added income
5
(i) Services income;
or
(ii) Services and B Existing Company trading income
(ii) Services and B Existing Company trading income
Preferential income tax rate of 15% be given for a period of 3 consecutive years of assessment limited to three (3) non-
citizen individuals holding key/C-Suite positions with a monthly salary of at least RM35,000 in a new company approved with
Global Services Hub tax incentive.
2. Qualifying Services and Additional Services
- Regional P&L / Business Management Unit;
- Strategic Business Planning;
- Corporate Development;
AND
Any 2 qualifying activities under the services category as follows: - Strategic services;
- Business services;
- Shared services;
- Other services.
3. Outcome-based conditions
- Annual operating expenditure;
- High value full time employees;
- C-suite with minimum salary of RM35,000;
- Locally ancillary services;
- Collaboration with higher education institution/TVET;
- Training for Malaysian students/citizen;
- Environmental. Social and Governance (ESG) elements; or
- Other conditions as determined by the Minister of Finance.
Application received by Malaysian Investment Development Authority (MIDA) from 14 October 2023 to 31 December
2027.
