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MIDA offers the following assistance to investors:
To further enhance MIDA’s role in assisting investors, senior representatives from key government agencies are based at MIDA’s Headquarters in Kuala Lumpur to advise investors on government policies and procedures. These representatives include officials from the Department of Labour, Immigration Department, Royal Malaysian Customs, Department of Environment, Tenaga Nasional Berhad and Telekom Malaysia Berhad
What are the types of applications evaluated by MIDA?
MIDA evaluates the following:
What are the equity requirements for new, expansion or diversification projects?
Effective from 17 June 2003, foreign investors can now hold 100% equity for all investments in new projects, as well as expansion or diversification projects by existing companies in the manufacturing sectors, irrespective of the level of exports.
How does MIDA act as a single window in facilitating and assisting investors?
To further enhance MIDA’s role of assisting investors, senior representatives from key agencies are stationed at MIDA’s headquarters in Kuala Lumpur to advise investors on government policies and procedures. These representatives include officials from the Department of Labour, Immigration Department, Royal Customs Malaysia, Department of Environment, Tenaga Nasional Berhad and Telekom Malaysia Berhad
What are the criteria to apply for a Manufacturing Licence?
A company with shareholder’s fund of RM2.5 million and above OR full-time manpower of 75 people or more can apply for a Manufacturing Licence.
How long does it take to approve for Manufacturing Licence?
Manufacturing Licence will be approved within four weeks (normal track) from the date of complete information received or two days from the date of complete information received for non-sensitive activities (e-ML).
How can I find out the status of my company’s application?
All applications received will be issued an acknowledgement letter which will state the names of the Officer / Deputy Director / Director of the relevant Industry Division. Applicants are advised to contact the respective officers on the application status.
If my company is exempted from a manufacturing licence, what other documents can I obtain from MIDA?
The applicant may obtain a ‘Confirmation Letter for Exemption from Manufacturing License’ by submitting their application via http://investmalaysia.mida.gov.my/ and should submit a copy of the following documents:-
Can I submit my application for the manufacturing licence online?
Applicants may submit their applications via http://investmalaysia.mida.gov.my/
What are the main incentives for the manufacturing and services sectors?
There are two major tax incentives for the manufacturing and services sectors:
What is the difference between Pioneer Status and Investment Tax Allowance?
A company approved with a Pioneer Status certificate can enjoy income tax exemption between 70% – 100% of statutory income for 5 to 10 years, whereas, for Investment Tax Allowance, a company can get allowances between 60% – 100% on qualifying capital expenditure incurred within a period of 5 to 10 years.
For projects with a longer gestation period and high capital expenditure, it would be more beneficial to opt for Investment Tax Allowance. Companies should study the options before applying either for Pioneer Status or Investment Tax Allowance.
How does a company apply for Pioneer Status/Investment Tax Allowance?
A company can apply for the incentives by filling up the relevant forms (ICA1 – 7) that are available on MIDA’s website (http://www.mida.gov.my/home/forms-&-guidelines/posts/).
If my company does not have a Manufacturing Licence, can I apply for Pioneer Status/Investment Tax Allowance?
A company exempted from Manufacturing Licence is eligible to apply for Pioneer Status/Investment Tax Allowance if the products/activities are promoted and the project has fulfilled other related criteria.
How can I confirm that my products/activities are eligible to apply for the incentives?
You may check from the list of promoted activities & products available in our websites or through our publication ‘Malaysia: Investment in the Manufacturing Sector – Policies, Incentives and Facilities’.
How long does it take to consider the application for the incentives?
The incentives will be processed, and the decision will be made within six weeks from the date of complete information received.
How can I find out the status of my company’s application for the incentive?
All applications received will be issued acknowledgement letters which will state the names of the Officer/Deputy Director/Director of the relevant Industry Division. Applicants are advised to contact the respective officers on the application status.
What is the difference between key post and the term post?
A key post is a post that can be held indefinitely by a foreigner based on the foreign ownership of the company. It is also dependent on the amount of paid-up capital of the company and type of product/industries involved. The approval is subjected to a minimum amount of paid-up capital of the company.
A term post is a post approved for up to 3-5 years for executive posts that require professional qualifications and practical experience, and 2 years for non-executive posts that require technical skills and experience. This is subject to the unavailability of Malaysians to fill up the post. Please check the latest policies and guidelines under the Ministry of Human Resources (https://mohr.gov.my/).
For companies to be eligible to apply for these posts, Malaysians must be trained to eventually take over the posts.
How to apply for a new expatriate post(s) for a new or existing company?
A company can apply to MIDA by using ICA/JA1 form or other relevant forms (please refer to the guidelines in the website). These forms can be downloaded from MIDA’s website ( https://www.mida.gov.my/forms-and-guidelines/)
How to apply for an extension or additional expatriate post?
The applicant can apply by to MIDA using form ICA/JA2 or other relevant forms. These forms can be downloaded from MIDA’s website (https://www.mida.gov.my/forms-and-guidelines/). The evaluation for an extension or additional expatriate post is subject to strong justifications by the company and current Government policies.
How long does it take for a decision on the application for expatriate posts?
The application for expatriate posts will be processed and a decision made within four weeks from the date of complete information received.
How does a company apply for import duty and/or sales tax exemption?
Applications for import duty and/or sales tax exemption need to be submitted online via MIDA’s Online Application Portal (https://investmalaysia.mida.gov.my).
What type of applications that can be submitted for import duty and/or sales tax exemption?
Applications for import duty and/or sales tax exemption which involve the following need to be submitted online via https://investmalaysia.mida.gov.my:
Application for MIDA Confirmation Letter or Surat Pengesahan MIDA (SPM) to claim import duty and/or sales tax exemption from the Royal Malaysian Customs Department on machinery/equipment/spare parts/prime movers/container trailers for the following::
How long does it take to receive a decision on the application of import duty and/or sales tax exemption?
The decision shall be conveyed within 4 weeks from the date of complete information received.
What are the supporting documents required to be attached in the online application form?
A company applying for the exemption should submit a copy of the following documents:
What is the procedure to apply for the import duty and/or sales tax exemption?
Please refer to the guidelines and procedures for import duty and/or sales tax exemption application in our website on the following link:
How does a company apply for a digital certificate?
Digital certificate applications need to be submitted online via https://mpaychannel.mida.gov.my/login.xhtml
Please refer to the guidelines and procedures on the following link:
https://mpaychannel.mida.gov.my/resources/documents/User%20Manual%20for%20MPayChannel%20Ver2.1.pdf
Could a manufacturing company in the Free Industrial Zone (FIZ)/Licenced Manufacturing Warehouse (LMW) apply for duty exemption?
Effective from 1 January 2011, all applications for duty exemption by manufacturing companies in the Free Industrial Zones (FIZ)/Licenced Manufacturing Warehouse (LMW) for sale of their finished goods to Principal Customs Area (PCA) should be submitted directly to the Royal Malaysian Customs Department/nearest Customs station.
What are services sub-sectors that are eligible to apply for status and/or incentives and/or expatriate applications through MIDA?
Companies undertaking the following selected services or activities may apply for status and/or incentives and/or expatriate:
What is the procedure to apply for status and/or incentives and/or expatriate application for the above services sub-sectors?
Applicants should submit the relevant application forms which can be downloaded from MIDA’s website ( https://www.mida.gov.my/forms-and-guidelines/). The forms also can be obtained from the Business Information Center at MIDA HQ or the nearest MIDA’s office.
How long does it take to receive a decision for the applications?
The applications will be processed, and a decision will be conveyed to the applicants within six weeks from the date of complete information received.
Post Licensing and Post Incentive Application
i. PIONEER STATUS CERTIFICATE
When to apply for Pioneer Status Certificate?
Within 24 months (2 years) from the date of Incentive Approval Letter. At the same time, the company must achieve 30% of the commercial production within three consecutive months (based on mass production), or the company must have first sales invoice (based on customer order/demand). The company must also submit their audited financial statement at least for one year.
How to apply for Pioneer Status Certificate?
The application can be applied by filling up specific forms. The forms can be downloaded from MIDA website – Post Approval: Application for Pioneer Status Certificate ( https://www.mida.gov.my/forms-and-guidelines/) according to the sectors as follow:
What are the main criteria for the determination of Production Date in the Pioneer Status Certificate?
The Production Date can be determined as follows:
How long does it take to process the Pioneer Status Certificate application?
The application of Pioneer Status Certificate will be processed within 6 weeks starting from the date complete information received by MIDA.
Is there any chance that company to extend their application of Pioneer Status Certificate if they unable to meet the requirement?
Yes. The company can apply for an extension of Pioneer Status Certificate application to MIDA with a valid reason, within the time period stipulated in the approval letter. The extension of time will be given based on the merits and justification of the application.
What if the company failed to submit the application of Pioneer Status Certificate within the two years grace period and without notice?
The approval of Pioneer Status will be withdrawn and MIDA will send a 30day notice for the company to justify. If the company fails to provide answers within 30 days, MIDA will proceed with the withdrawal of the incentive.
Is it necessary to provide the company’s seal and verification of document?
Yes. A company is required to provide the company’s seal and verification as a tool to ensure that it is a genuine application and to avoid any misuse of information.
ii. INVESTMENT TAX ALLOWANCE (ITA)
How is the procedure to apply for Effective Date and Verification of Compliance for Investment Tax Allowance (ITA) Incentive?
There are two stages in which the company is required to submit the application:
Forms can be retrieved from here https://www.mida.gov.my/forms-and-guidelines/.
When to apply for the Determination of Effective Date for the Investment Tax Allowance (ITA I)?
A company is given two years from the date of the approval letter to submit an application for ITA I that is the Determination of Effective Date by providing the first qualifying capital expenditure invoice
When to apply for the Verification of Compliance to Investment Tax Allowance Conditions (ITA II)?
A company is requested to submit ITA II application for the Verification of Compliance before they claim to IRB and definitely before the five year incentives period expires.
Is it necessary to provide the company’s seal and verification of document?
Yes. A company is required to provide the company’s seal and verification as a tool to ensure the application is genuine and to avoid any misused information.
How long does it take to process the ITA I/ ITA II applications?
It will take up to 6 weeks starting from the date complete information received by MIDA.
iii. EQUITY
How to apply for the transfer of shares and waiver of the equity conditions or any matters related to the equity condition?
A formal letter should be submitted to MIDA inclusive of the following documents:
(All documents must be certified true copy by the company secretary except for the Export Performance)
Note: – Where the shares of the company are held by a SDN. BHD. company, a certified copy of the Annual Return Form of the shareholder company (SDN. BHD. company) is required. – Where the shares of the company are held by a BHD company, a certified copy of the Annual Return Form of the shareholder company (BHD company) and a summary of the Register of Depositor/shareholding details is required.
How long does it take to process the equity application?
The equity application (transfer of share and waiver of equity condition, etc.) will take six weeks from the complete information received.