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Johor-Singapore Special Economic Zone (JS-SEZ)

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Post date April 16, 2025
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Johor-Singapore Special Economic Zone (JS-SEZ)

On 8 January 2025, Malaysia Government announced tax package incentive for The Johor-Singapore Special Economic Zone (JS-SEZ). JS-SEZ offers a special corporate tax rate 5% for up to 15 years for new investment in qualifying activities such as aerospace manufacturing, medical devices, global services hubs and artificial intelligence and also special personal income tax rate 15% for 10 years for knowledge worker.

Introduction

Johor-Singapore Special Economic Zone (JS-SEZ) is the first special economic zone spanning Southeast Asia’s borders located in the southern Malaysian state of Johor.

Effective from January 1, 2025, companies undertaking new investment in high-growth sectors within the JS-SEZ eligible to apply for special corporate tax rate of 5% for up to 12, 15% tax rate up to 10 years for knowledge workers employed in the JS-SEZ, stamp duty exemption etc.

Location

Source: www.irda.com.my

Why Invest in JS-SEZ

Competitive Cost Advantage

Strong Government Support

Designated Flahships Areas

Strategic Location & Strong Connectivity

Attractive Policies & Incentives

Competitive Tax Incentive

A. Special Tax Corporate Tax Rate:

Special tax rate of 5% for up to 15 years for companies undertaking new investment as below:

No.

B. Special Tax Rate for Knowledge Workers:

A special tax rate of 15% for a period of 10 years is provided for eligible knowledge workers in all Flagships.

Eligibility Criteria / Conditions:

Malaysian/Non-Malaysian citizen;
Not generating employment income in Malaysia 24-months prior;
Salary abroad/in Malaysia >RM20,000 per month.
Subject to academic qualifications / years of professional work experience
Subject to MyCOL profession and JS-SEZ qualifying sectors

Source: MIDA guideline

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Family Office Incentive Scheme in Forest City Free Trade Zone (FCFTZ)

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Post date January 15, 2025
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Family Office Incentive Scheme in Forest City Free Trade Zone (FCFTZ)

First location in Malaysia which provide 0% concessionary tax rate for family offices. This incentive is valid for an initial period of 10 years and an additional 10 years with further conditions.

Forest City Special Financial Zone (FCSFZ)

Following amendment bills were tabled and passed by House of Parliament in July 2024 and gazetted in Sept 2024, FCSFZ is first onshore duty-free zone and special financial zone in Forest City, Johor, Malaysia.

Pulau Satu, Forest City is the first location in Malaysia to offer a zero (0%) percent tax rate for Family Office established under the Single Family Office Scheme.

Single Family Office (SFO) & Single Family Office Vehicle (SFOV)

What is Single Family Office (SFO)?

SFO is a corporate vehicle;
Wholly owned or controlled by members of a single wealthy family;
Created to exclusively manage the assets, investments and long-term interests of that family;
SFO may also represent multiple generations and branches of the family.

What is Single Family Office Vehicle (SFOV) ?

SFOV is a corporate vehicle;
Wholly owned or controlled by members of a single wealthy family;
Established solely for the purposes of holding the assets, investments and long-term interest of members of the single family.

SFO vs SFOV

Key Conditions on SFOVs Tax Incentives

SFOV must be incorporated in Malaysia, preregistered with the Securities Commission (SC), and operating in Pulau Satu, FCSFZ to be eligible for zero (0%) Concessionary Tax Rate for first initial 10 years + additional 10 years. The below conditions are also required to be fulfilled during the incentive periods.

Conditions

First 10 Years

Additional 10 Years

1. Minimum AUM

RM30Mil (*USD7Mil)

RM50Mil (*USD11.5Mil)

2. Minimum Domestic Investment in Promoted Activities

At least 10% of AUM or RM10Mil (*USD2.3Mil), whichever is lower

At least 10% of AUM or RM10Mil (*USD2.3Mil), whichever is higher

3. Minimum local operating expenditure per annum

RM500,000 (*USD115,000)

RM650,000 (*USD150,000)

4. Minimum full time employees

Two (2) and each with a minimum monthly salary of RM10,000 and of whom at least one (1) is an investment professional.

Four (4)

*1 USD = 4.32740 MYR

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Green Investment Tax Allowance (GITA) For Own Comsumption

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Post date October 16, 2024
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MALAYSIA GREEN INVESTMENT TAX ALLOWANCE (GITA) FOR OWN COMSUMPTION

Companies undertake in green technology project for own consumption may enjoy up to 100% Green Investment Tax Allowance (“GITA”) to be offset against 70% of statutory income. Promoted activities such as green building, renewable energy system, energy efficiency, battery energy storage system, electric vehicles etc.

In 2024 Budget, the green technology tax incentives have been revised to the following categories:

Green Investment Tax Allowance (GITA) Project for Business Purposes;
Green Investment Tax Allowance (GITA) Asset for Own Consumption; and
Green Income Tax Exemption (GITE) Solar Leasing

The Malaysian Green Technology and Climate Change Corporation (MGTC) has issued a new guideline for GITA for own consumption project as below:

(i) Investment Tax Allowance :

Tier 1

Tier 2

Qualifying Activities

Qualifying asset as approved by Minister of Finance, Battery Energy Storage System (BESS) and Green Building.

Qualifying asset as approved by Minister of Finance (Appendix 11), Renewable Energy System and Energy Efficiency (Appendix 2).

Percentage of GITA

100%

60%

Percentage (%) of Statutory Income to be Set-Off

70%

Qualifying CAPEX

The qualifying capital expenditure must be an approved asset by MOF that have been verified by MGTC and is listed under the MyHIJAU Directory;
For Green Building, the qualifying CAPEX must be verified by the locally Green Building Rating Tools/ Certification Body approved by Government;
The asset must be new and owned by the Company;
The asset must be used in the business carried out by the company in Malaysia for own consumption and not for income generation.

Qualifying Asset

Electric vehicles (for commercial / industrial used only);
EV Infrastructure;
Green Building;
Energy Storage

Energy Efficiency;
Renewable Energy System;
Waste Composter or waste recycling;
Wastewater recycling or rainwater harvesting

Incentive Period

Qualifying Capital Expenditure incurred starting from 1 January 2024 until 31 December 2026.

Application Period

The application made under the GITA Asset Guidelines must be received by the Malaysian Green Technology and Climate Change Corporation [“MGTC”] from 1st January 2024 until 31st December 2026.

(ii) Eligibility Criteria:

a) New or existing Company:

A newly established company that incurred qualifying capital expenditure under GITA Asset; OR
Existing Company operating in Malaysia but has not incurred qualifying capital under GITA Asset and has not been approved for Green Technology Incentive.

b) Companies within the same group incurring the qualifying capital expenditure:

The project carried out in building/location separately from activities carried out by holding company or related companies;
The plant, machinery and equipment used shall be separately used and shall not be transferred from holding company or related companies;
Not shares the same employees as per holding company or related companies except for the management staff and directors of the Company;
This project must not result in a reduction in the investment of holding company or related companies.

c) To comply all the following criteria:

Minimize the degradation of the environment or reduce greenhouse emission;
Promotes health and improvement of environment; and
Conserves the use of energy, water and/or other forms of natural resources or promote the use of renewable energy or able to recycle waste material resources.

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Malaysia Cold Chain Facilities

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Post date March 18, 2024
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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;

OR
Investment 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)

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.

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Malaysia Global Services Hub Tax Incentive

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Post date February 8, 2024
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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:

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.

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Why Dubai

The UAE’s 0% corporate tax policy transcends numbers; it’s an invitation to transform your business aspirations into reality. With a robust infrastructure, a strategic location, and a welcoming environment, the UAE beckons entrepreneurs and visionaries to harness its potential.

One of the LOWEST TAX RATES in the world, embracing 0% Corporate Tax in the UAE

The United Arab Emirates (UAE) stands as a global beacon of business innovation and prosperity. In the heart of this thriving economic landscape, the UAE offers an array of incentives and advantages to both local and international companies. At the core of this allure is the UAE’s corporate tax policy, a game-changer that propels businesses towards uncharted heights.

Tax Exemptions for Companies in Dubai vs Malaysia

Tax

Rate

Conditions

Value-Added Tax (VAT)

While the UAE champions business freedom, it maintains a balanced approach with a 5% VAT rate, obliging businesses with revenue exceeding AED 375,000 Yet, the UAE’s commitment to global trade is evident as exports of goods remain untaxed, fostering an environment ripe for international commerce.

Businesses with revenue > AED 375,000 (USD 102,000)

Export of goods

Value-Added Tax (VAT)

In the UAE, the benefits extend beyond corporate tax. Dividends, capital gains, intragroup transactions, and reorganizations all enjoy a tax rate of 0%, fostering an ecosystem where business can flourish without restraint.

Dividend and Capital gain, as well as intragroup transaction and reorganisations.

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Malaysia Digital Tax Incentive

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Post date July 19, 2023
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Malaysia Digital (MD) Status Incentive (formerly known as MSC Malaysia Status)

MSC Malaysia Status Service Incentive is now rebranded to Malaysia Digital (“MD”). Companies awarded with MD status shall be entitled to a set of incentives, rights and privileges from the Government of Malaysia. MD status companies have flexibility to choose benefits (either with or without tax incentives).

MALAYSIA DIGITAL (“MD”) STATUS SERVICE INCENTIVE (formerly known as MSC Malaysia Status)

On 4th July 2022, The Government of Malaysia through the Malaysia Digital Economy Corporation (“MDEC”) launched Malaysia Digital (“MD”) as the new national strategic initiative to accelerate and further develop digital economy replaces the Multimedia Super Corridor (“MSC”) Malaysia.

1. ELIGIBILITY CRITERIA

To be eligible to apply for the MD Status Company, companies are required to meet the following criteria:-

a) The company incorporated under the Companies Act 2016 and resident in Malaysia; AND
b) Proposing to carry out one or more of the MD activities (please refer Appendix A).
c) Other general conditions:-

To comply with all applicable permit/licensing requirements and to ensure that the required permit/license has been obtained from the relevant authority for the implementation of MD Approved Activities.

With effective from 25th March 2022, MD Status Company are not subjected to minimum office space requirements and are allowed to operate and undertake MD Approved Activities in any location within Malaysia.

2. BENEFITS OF MD STATUS COMPANIES

i. MD BILL OF GUARANTEES (BoGs)

A set of incentives, rights and privileges available for MD status companies;
MD status companies eligible to access or apply for, amongst others:-

Tax incentives (income tax exemption or investment tax allowance);
Foreign knowledge worker quota and passes;
Multimedia / ICT equipment import duty and sales tax exemptions;
Freedom of ownership by exempting local ownership requirements;
Flexibility to source capital and funds globally

ii. OTHER BENEFITS

MD Status companies are also eligible to access facilitation of other benefits as below, subject to certain criteria and conditions:-

Access to the local and international market and ecosystem;
Business matching and partnership;
Grant and funding facilitation; and/or
Participation in MD catalytic programs.

3. COMPANIES WITH MD STATUS COMPANY WILL HAVE TO COMPLY WITH THE FOLLOWING CONDITIONS WITHIN 12 MONTHS FROM THE DATE OF AWARD OF SUCH STATUS:

Activity

Commencement of operation and undertaking of the Malaysia Digital Approved Activities in Malaysia.

Knowledge Workers

Minimum of 2 full-time employees (comprising knowledge workers) with minimum average monthly base salary of RM5,000 employed for the MD Approved Activities.

Operating Expenditure

Minimum annual operating expenditure of RM50,000 incurred for the MD Approved Activities.

Paid-up Capital

Minimum of RM1,000.00.

As per MDEC’s announcement, the guidelines for the above tax incentives will be released by soon. Please be guide accordingly.

THE MALAYSIA DIGITAL ACTIVITIES Research, development and commercialization of solution and/or provision of services in relation to any of the following technologies or areas:

Big data analytics (BDA);
Artificial intelligence (AI);
Financial technology (FinTech);
Internet of things (IOT);
Cybersecurity (technology/software/design and support);
Data centre and cloud (technology/software/design and support);
Blockchain;
Creative media technology;
Sharing economy platform;
User interface and user experience (UI/UX);
Integrated circuit (IC) design and embedded software;
3D printing (technology/software/design and support);
Robotics (technology/software/design)
Autonomous (technology/software/design and support);
Systems/network architecture design and support;
Global business services or knowledge process outsourcing;
Virtual, augmented and/or extended reality – new/additional activity ;
Drone technology – new/additional activity ;
Advance telecommunication technology – new/additional activity ; OR
Other emerging technologies deemed significant for the digital ecosystem subject to approved by the Approval Committee – new/additional activity.

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Why Listing on 1Exchange (1X)?

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Post date July 10, 2023
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Why Listing on 1Exchange (1X)?

1X’s strategic shareholder is SGX. 1X is widely regarded as 3rd Board and 1st MAS-regulated and cost-effective Private Securities Exchange in Singapore to design for private companies to enable them to trade on private share and provide ESOS and liquidity for their investors and employees, respectively.

Why Listing on 1Exchange (1X)?

Yes, you may be eligible! if your company has revenue of at least SGD 2 million with at least 2 years operating history, and the listing process only takes about 2-3 months.

您公司有考虑在 1Exchange (1X) 上市？

如果您的公司符合以下条件：

营业额：至少新加坡2百万新币。
经营历史：至少2年，需提供审计过的财务报表。
最低可流通股份：至少占股份的10%，且价值至少新加坡2百万新币。

时间范围：2至3个月。

谁是1 Exchange (1X)?

新加坡交易所（SGX）是1Exchange（1X）的战略股东和合作伙伴之一，1X是新加坡首家受金融管理局监管的私人证券交易所，被广泛视为全球金融中心的第三板块。

1X是一个“轻触式”和成本效益高的私人上市场所，专门为家族企业、成长中的公司和准备上市公司而设计。

此交易所提供市场导向的解决方案，例如直接私人上市和员工股票期权交易。通过1X上市，创始人、所有者和在成长阶段的公司依然可以在保留灵活性和控制权的同时，实现部分退出和可交易性的私人股份。

在1X上的私人投资者可以自由、安全地买入和卖出股份，随时随地可以达到实现流动性。

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Why Singapore?

WHY SINGAPORE

Singapore is a strategic base to implement your growth strategies and to manage and integrate your operations for the region and beyond. Being one of the lowest income tax rate countries, Singapore has further announced a full and partial tax exemption for the newly incorporated company for the first 3 years consecutively.

1) One of the LOWEST TAX RATES in the world

With effect from 2010, Singapore corporate income tax rate has further reduced from 18% to 17%, being one of the lowest tax rates in the world. Singapore Government has declared a new start-up tax exemption and partial tax exemption for newly incorporated and existing companies:

Tax Exemptions for Newly Start-up Companies in Singapore vs Malaysia

4.25% tax on first S$100K chargeable income

For a newly incorporated company (1), the corporate income tax rate is 4.25% on the first S$100k (≈RM300k) of chargeable income for the first 3 years of assessment consecutively.

8.50% tax on chargeable income of above S$100K up to S$200K

The newly incorporated companies are continued to enjoy for the partial tax exemption which effectively translates to about 8.5% tax rate on chargeable income of above S$100,000 up to S$200,000 per annum. The chargeable income above S$200,000 will be charged at the normal headline corporate tax rate of 17%.

Tax Exemptions for Existing Companies in Singapore vs Malaysia

The 4th years of assessment and onwards, the companies pay only 4.25% tax on their first S$10,000 of chargeable Income and 8.50% for the next S$190,000. The chargeable income above S$200,000 will be charged at the normal headline corporate tax rate of 17%.

1. (a) It is incorporated in Singapore and a tax resident of Singapore for that Year of Assessment. (b) It has no more than 20 shareholders throughout the basis period relating to that Year of Assessment and all its shareholders are individuals throughout the basis period relating to that Year of Assessment; or there is at least one individual shareholder with a minimum of 10% shareholding. c) Its principal activity is not related to (i) investment holding, or (ii) property developer for sales, investment, and both.

2) Engage in TRIANGULAR or TETRAGONAL trade

The companies engaged in international transactions among two or more countries, for instance, the companies purchase goods from e.g. China, and then sell them to e.g. America or trade domestically, Malaysia. This is when the companies need a lower tax trading company (2) to act as the intermediary to issue invoice and packing list in order to strengthen their competitive power in the international or local market.

2. To consider a company as resident in Singapore, the control and management of the business must be exercised in Singapore. Though the term “control and management” is not clearly defined by authorities, a generally accepted consensus is that it refers to the policy level decision making at the level of Board of Directors.

3) Government Incentives

Overview of government incentives

Depending on your company’s business plans, you may consider various tax incentives and grants as follows:

Internationalisation

Incentives available

Benefits

International Headquarters (IHQ) Award

Concessionary corporate tax rates of 5% or 10% for companies that commit to anchor substantive HQ activities in Singapore to manage, coordinate and control regional business operations. The award is accompanied with the award of Development and Expansion Incentive governed by Singapore Economic Development Board (EDB).

Mergers & Acquisitions (M&A) Scheme

The acquiring company is entitled to the following benefits:

25% of M&A allowance (capped at S$10 million) of the total acquisition value capped at S$40 million per YA.
Double Tax Deduction (DTD) on the transaction cost capped at S$100,000 incurred during the share acquisition process.

Double Tax Deduction (DTD) for Internationalisation Scheme

Enjoy up to 200% tax deduction on qualifying expenditure incurred on market expansion and investment development activities. The qualifying expenditures include:

Qualifying salary expenses incurred for employees posted overseas in an overseas entity.
Overseas business development trips and missions.
Overseas investment study trips and missions.
Overseas trade fairs.
Local trade fairs approved by Enterprise Singapore or STB.

Market Readiness Assistance (MRA) grant

Funding support of 50% of eligible costs, capped at S$100,000 per company per new market by Enterprise Singapore. The eligible costs for marketing activities including overseas market set-up, business development and market promotion.

Trading

Incentives available

Benefits

Global Trader Programme

A concessionary corporate tax rate of 5% or 10% for a renewable 3 or 5-year period on qualifying trading income granted by Enterprise Singapore, which includes income from physical trading, brokering of physical trades, derivative trading income, and income from structured commodity financing activities, treasury activities and advisory services in relation to mergers and acquisitions.

Manufacturing and services

Incentives Available

Benefits

Pioneer Incentive

Tax exemption on income from qualifying activities for a period of not exceeding 15 years, administered by Economic and Development Board (EDB).

Development & Expansion Incentive (DEI)

Reduced tax rate of 5% or 10% on incremental income from qualifying activities, limited to 5 years. The incentive is governed by Economic and Development Board (EDB).

Investment Allowance (IA)

Allowance of up to 100% (on top of normal capital allowance) on approved fixed capital expenditure. This incentive is administered by Economic and Development Board (EDB).

Integrated Investment Allowance (IIA)

Additional allowance on fixed capital expenditure incurred on qualifying productive equipment placed with an overseas company for an approved project. This scheme is administered by Economic and Development Board (EDB).

Land Intensification Allowance (LIA)

Initial allowance of 25% and annual allowance of 5% on qualifying capital expenditure incurred for the construction or renovation/extension of a qualifying building or structure. Annual allowances of 5% are granted until total allowance amounts to 100% of qualifying capital expenditure. Approvals for the incentive will be granted by the Economic Development Board (EDB).

Automation Support Package (under Enterprise Singapore)

Enterprise Development Grant (EDG)
Investment Allowance (IA)
Enhanced SME Equipment Loan

Grant support up to 70% of qualifying project costs such as equipment, training and consultancy.

Qualifying projects may be eligible for an IA of 100% on the amount of approved capital expenditure, net of grants. The approved capital expenditure is capped at S$10 million per project.

Under Enterprise Financing Scheme (EFS), qualifying SMEs may receive up to 70% government’s risk-share with participating financial institutions for qualifying projects. SMEs can apply for fixed asset loans of up to S$30 million. ことができる。

Financial and Treasury

Incentives available

Benefits

Finance & Treasury Centre (FTC) Incentive

Enjoy concessionary corporate tax rate of 8% for five years on income derived from qualifying services/ activities as well as withholding tax exemption on interest payments on loans from banks and approved network companies for FTC activities. This incentive is administered by Economic and Development Board (EDB).

Financial Sector Incentive (FSI)

Concessionary tax rate of 10% or 13.5% for licensed financial institutions, from large universal banks, fund managers to capital market players. This incentive is governed by Monetary Authority of Singapore (MAS).

Research and Development (R&D) and intellectual property (IP) management

Incentives available

Benefits

Research Incentive Scheme for Companies (RISC)

Co-funding to encourage and assist businesses companies in Singapore to conduct or expand their research and development (R&D) activities in science and technology. This scheme is administered by Economic and Development Board (EDB).

Supportable project costs include expenditure in the following:

Manpower cost (up to 50% support)
Equipment, materials, consumables and software (up to 30% support)
Singapore-based professional services (up to 30% support)
IPRs, e.g. licensing, royalties, technology acquisition (up to 30% support)

Intellectual Property Development Incentive (IDI)

Reduced tax rate of 5% or 10% on a percentage of qualifying IP income for an initial period of not exceeding 10 years, and may be further extended for a period or periods not exceeding ten years each. This incentive is administered by Economic and Development Board (EDB).

Approved Foreign Loan Incentive (AFL)

Reduced or nil withholding tax rate on interest payments on loans with minimum amount of S$20 million taken to purchase productive equipment. This incentive is administered by Economic and Development Board (EDB).

Approved royalties incentive (ARI)

Reduced or nil withholding tax rate on approved royalties, fees or contributions to research and development costs made to a non-tax resident.. This incentive is administered by Economic and Development Board (EDB).

Writing-down allowances for IP acquisition (S19B)

Automatic 5/10/15-year writing-down allowances on capital expenditure incurred for IPR acquisitions with legal and economic ownership. EDB’s approval is required if only economic ownership of IP rights is acquired.

Maritime, shipping and logistics

Incentives Available

Benefits

Maritime Sector Incentive (MSI) – Singapore Registry of Ships (MSI-SRS) and Approved International Shipping (MSI-AIS)

Tax exemption on qualifying shipping income from operating Singapore and foreign- flagged ships, provision of specified ship management services, and income from foreign exchange and risk management activities which are carried out in connection with or incidental to the operations of ships for either a 10-year renewable period; or a 5-year non-renewable period, with the option of graduating to the 10-year renewable award at the end of the 5-year period. This incentive is administered by Maritime and Port Authority of Singapore (MPA).

MSI – Shipping Related Support Services (MSI- SSS) Award

Concessionary tax rate of 10% on the incremental income derived from carrying out approved shipping-related support services for a 5-year renewable period. This incentive is administered by Maritime and Port Authority of Singapore (MPA).

Ship broking;
Forward freight agreement (FFA) trading;
Ship management;
Ship agency;
Freight forwarding and logistics services; and
Corporate services rendered to qualifying approved related parties who are carrying on business of shipping – related activities.

MSI – Maritime Leasing (MSI-ML) Award

Concessionary tax rate of 10% for up to 5 years on qualifying leasing or management income. This incentive is administered by Maritime and Port Authority of Singapore (MPA).

Maritime Innovation & Technology (MINT) Fund

To promotes and encourages upstream research, product and solution development relevant to the maritime industry in Singapore. This incentive is administered by Maritime and Port Authority of Singapore (MPA).

Grant of up to 70% of the total qualifying project costs (inclusive of input GST), comprising of manpower and equipment either engaged or acquired for the purposes of the project, and other operating expenditure incurred for the purposes of the project.

4) TAX EXEMPTION on Dividend declared from Singapore

Dividend declared out of the profit derived from Singapore Company and received in Malaysia is exempted from tax (3).

5) TAX TREATIES

Singapore has entered into Double Taxation Agreement (“DTA”) with 88 countries. Please refer to APPENDIX I.

6) AUDIT EXEMPTION of a Singapore Company

A company incorporated on or after 1 July 2015, if a private company that fulfils at least two of the following three quantitative criteria in each of the immediate past two financial years is exempted from audit (4) : (a) Total annual revenue of not more than SGD 10 million; (b) Total assets of not more than SGD 10 million; (c) Number of employee of not more than 50.

3. Section 127 (1) – Exemptions from tax. Any income specified in Part 1 of Schedule 6 shall be exempt from tax. Part 1 Schedule 6, para 28 (1), Income of any person, other than a resident company carrying on the business of banking, insurance or sea or air transport, for the basis year of assessment derived from sources outside Malaysia and received in Malaysia Part 1 schedule 6, para 28(1), exempt income of any person derive from sources outside Malaysia and received in Malaysia (See also exception).

4. Existing safeguards will however be retained, such as requiring all companies to keep proper accounting records, and empowering shareholders with at least 5% voting rights to require a company to prepare audited accounts.

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Mandatory Sustainability Reporting

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Post date January 30, 2023
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Mandatory Sustainability Reporting

Stakeholders, including investors, regulators, customers, etc., are increasing focus on sustainability performance. How organizations translates their sustainability practices into positive social and environmental impacts. Stakeholders eye for improved operating efficiency, natural resource stewardship, community relations and more.

MANDATORY SUSTAINABILITY REPORTING REQUIREMENT

a. Bursa Malaysia Sustainability Reporting Requirement

Enhanced Sustainability Reporting Requirements

Timeline (Main Market)

Timeline (Ace Market)

9 common sustainability matters and indicators
Common sustainability indicators data and targets (at least three financial years)*
Statement of Assurance (internal or independent)

For financial year ending on or after December 31, 2023

For financial year ending on or after December 31, 2025

9 + 2 common sustainability matters and indicators (waste and emissions management)
Transition plan disclosures (only for Ace Market Registrants)

For financial year ending on or after December 31, 2024

For financial year ending on or after December 31, 2026

Prescribed sustainability information

N/A

For financial year ending on or after December 31, 2024

TCFD-aligned climate-related disclosures

Cover all recommended disclosures under the four TCFD pillars i.e., Governance, Strategy, Risk Management, and Metrics and Targets for the FYE on or after 31 December 2025 onwards.

An incremental approach introduced for ‘specified elements’4, where PLCs may disclose their progress or status towards meeting the full disclosure of the specified elements for a period of two years.

For financial year ending on or after December 31, 2025

N/A

Full TCFD-aligned disclosures to be achieved for the FYE on or after 31 December 2027

For financial year ending on or after December 31, 2027

N/A

b. Singapore Stock Exchange Sustainability Reporting Requirement

Scoped Entities

Timeline

ESG Funds (required by the Monetary Authority of Singapore (MAS) per Circular No. CFC 02/2022)

Effectivity date 1 January 2023

All listed issuers to issue a complete sustainability report

For financial year ending on or after December 31, 2017

All listed issuers to include TCFD recommendations on their sustainability reports:

Climate reporting is mandatory for all issuers on a ‘comply or explain’ basis.
Climate reporting is mandatory for issuers in (a) financial industry; (b) agriculture, food and forest products industry; and (c) energy industry. For other issuers, climate reporting on a ‘comply or explain’ basis.
Climate reporting is mandatory for issuers in (a) financial industry; (b) agriculture, food and forest products industry; (c) energy industry; (d) materials and buildings industry; and (e) transportation industry.

For other issuers, climate reporting on a ‘comply or explain’ basis.

For financial year ending on or after December 31, 2022

For financial year ending on or after December 31, 2023

For financial year ending on or after December 31, 2024

WHAT WE DO

More and more stock exchanges recognised the important of Sustainability Reporting and require all the listed companies to disclose their ESG performance as non-financial performance reporting to satisfy the greater demand of transparency from stakeholders.

Our ESG experts at ShineWing TY TEOH can work with you on the following sustainability programs:

Training and Education
Train your Board, Management, and Employees about the ins and outs of ESG reporting globally and within your region. We provide
education coverage on these key matters:
1. Introduction to ESG
2. ESG and Sustainability Reporting
  1. Existing and Upcoming Regulations
  2. Corporate Governance
  3. The Role of the Board of Directors, Management, and Operating Departments
  4. Establishing and Communicating Policies
  5. Benefits and Remuneration Disclosures
  6. ESG Preparedness
  7. Dealing with GHG emissions
  8. Your Value Chain and their impact
  9. Employee and Customer Considerations
3. Accounting and Reporting ESG-related assets and transactions
4. Diversity, Equity, and Inclusion
ESG Risk and Opportunities Assessment
Revisit existing process, procedures, and controls to identify risks and opportunities to help management address risks and seize opportunities aligned with emerging market trends particularly on environment, health & safety.
Policy advisory and creation
In compliance with sustainability regulations, identify needs on policies to establish and assist management in preparing and executing the relates policies and controls.
Stakeholder engagement
Identify, plan, develop and implement required engagement mechanisms with your stakeholders.
Sustainability reporting and disclosure
Prepare regulatory compliant sustainability reports that meets stakeholder needs and expectations.
Accounting and reporting ESG-related assets and transactions
Account and report ESG related transactions including Carbon Credits, Renewable Energy Credits, Carbon Offsets, Investments on ESG-linked funds/securities, etc.
Report assurance
Provide assurance on your sustainability transactions and reports.

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Tags Publications, Publications - Advisory

Johor-Singapore Special Economic Zone (JS-SEZ)

Introduction

Location

Why Invest in JS-SEZ

Competitive Tax Incentive

A. Special Tax Corporate Tax Rate:

B. Special Tax Rate for Knowledge Workers:

Family Office Incentive Scheme in Forest City Free Trade Zone (FCFTZ)

Forest City Special Financial Zone (FCSFZ)

Single Family Office (SFO) & Single Family Office Vehicle (SFOV)

What is Single Family Office (SFO)?

What is Single Family Office (SFO)?

What is Single Family Office Vehicle (SFOV) ?

SFO vs SFOV

Key Conditions on SFOVs Tax Incentives

MALAYSIA GREEN INVESTMENT TAX ALLOWANCE (GITA) FOR OWN COMSUMPTION

(i) Investment Tax Allowance :

(ii) Eligibility Criteria:

Malaysia Cold Chain Facilities

MALAYSIA GLOBAL SERVICES HUB TAX INCENTIVE

1. Overview Of The Incentive

2. Qualifying Services and Additional Services

3. Outcome-based conditions

Why Dubai

One of the LOWEST TAX RATES in the world, embracing 0% Corporate Tax in the UAE

Tax Exemptions for Companies in Dubai vs Malaysia

Malaysia Digital (MD) Status Incentive (formerly known as MSC Malaysia Status)

MALAYSIA DIGITAL (“MD”) STATUS SERVICE INCENTIVE (formerly known as MSC Malaysia Status)

1. ELIGIBILITY CRITERIA

2. BENEFITS OF MD STATUS COMPANIES

i. MD BILL OF GUARANTEES (BoGs)

ii. OTHER BENEFITS

3. COMPANIES WITH MD STATUS COMPANY WILL HAVE TO COMPLY WITH THE FOLLOWING CONDITIONS WITHIN 12 MONTHS FROM THE DATE OF AWARD OF SUCH STATUS:

Activity

Knowledge Workers

Operating Expenditure

Paid-up Capital

THE MALAYSIA DIGITAL ACTIVITIES Research, development and commercialization of solution and/or provision of services in relation to any of the following technologies or areas:

Why Listing on 1Exchange (1X)?

Why Listing on 1Exchange (1X)?

您公司有考虑在 1Exchange (1X) 上市？

谁是1 Exchange (1X)?

WHY SINGAPORE

1) One of the LOWEST TAX RATES in the world

4.25% tax on first S$100K chargeable income

8.50% tax on chargeable income of above S$100K up to S$200K

2) Engage in TRIANGULAR or TETRAGONAL trade

3) Government Incentives

Overview of government incentives

4) TAX EXEMPTION on Dividend declared from Singapore

5) TAX TREATIES

6) AUDIT EXEMPTION of a Singapore Company

Mandatory Sustainability Reporting

MANDATORY SUSTAINABILITY REPORTING REQUIREMENT

a. Bursa Malaysia Sustainability Reporting Requirement

b. Singapore Stock Exchange Sustainability Reporting Requirement

WHAT WE DO

OUR GLOBAL PRESENCE

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