The Special Tax Incentive was announced by the Government under the National Economic Recovery Plan (PENJANA) on 5th June 2020.
The main objective of this incentive is to assist companies intending to relocate their operations to Malaysia following global economic crisis which has led to major disruptions of global supply chains.
The types of incentives offered under the Special Tax Incentive are as follows:
i. 0% special tax rate for 10 years for new investment in manufacturing sector with capital investment between RM300 million to RM500 million
ii. 0% special tax rate for 15 years for new investment in manufacturing sector with capital investment above RM500 million
iii.100% Investment Tax Allowance (ITA) for 5 years for existing company in Malaysia relocating overseas facilities into Malaysia with capital investment above RM300 million. The allowance is offset against 100% of statutory income for each assessment year.
The incentive is effective from 1 July 2020 until 31 December 2021.
Guidelines on Special Tax Incentive under PENJANA
New Manufacturing Project -
FORM ICA / JA-1
Expansion and/or Diversification Project - FORM ICA / JA-2