Invest in Malaysia

Incentives for Investment

11. Incentives for the Shipping and the Transportation Industry

11.1 Tax Exemption for Shipping Operation

The income of a shipping company derived from the operation of Malaysian ships is 70% exempted from tax from Year of Assessment 2012. This incentive only applies to residents. A "Malaysian Ship" is defined as a sea-going ship registered as such under the Merchant Shipping Ordinance 1952 (Amended), other than a ferry, barge, tugboat, supply vessel, crew boat, lighter, dredger, fishing boat or other similar vessels.

The Income of any person derived from exercising an employment on board a "Malaysian Ship" is exempted from tax. Income received by non-residents from the rental of ISO containers to Malaysian shipping companies is also exempted from income tax.

Claims should be submitted to IRB.

11.2 Sales Tax Exemption on Prime Movers and Trailers

Container hauliers qualify for sales tax exemptions on new prime movers and trailers that are produced locally.

Applications should be submitted to MIDA.