Tax Incentives & Rulings

• What it is: Tax deductions and allowances for investments in renewable energy, energy efficiency and environmental protection.
• Who it’s for: Companies in solar, biomass, energy-saving equipment and sustainable construction.
• Why it matters: Supports ESG goals and aligns with Malaysia’s low-carbon agenda.

• What it is: Tax perks for developing/operating tech-enabled, sustainable logistics hubs.
• Who it’s for: Investors in smart warehouses, automation and supply chain tech.
• Why it matters: Boosts Malaysia’s role as a high-efficiency regional logistics hub.

• IC Design Export Incentives: Tax breaks for companies exporting integrated circuit (IC) design services.
• AI & Tech Education Deductions: Special deductions for private institutions offering AI, robotics, IoT and FinTech courses.
• MNE Supply Chain Incentives: Tax breaks for MNEs investing over RM2 million in local manufacturing and supply chains.
• Matching Funds for Local Suppliers: Over RM100 million in matching funds and tax incentives for local suppliers in E&E, specialty chemicals and medical devices.
• Strategic Investment Fund: RM1 billion fund to support high-value activities and talent development.

Pioneer Status

• What it is: Partial or full income tax exemption (up to 70% or 100%) on statutory income for 5–10 years.
• Who it’s for: Companies involved in promoted activities or products, especially in high-tech, green and strategic sectors.
• Why it matters: Reduces tax burden during the critical growth phase of new ventures.

Investment Tax Allowance (ITA)

• What it is: Allowance of 60%–100% on qualifying capital expenditures, offset against statutory income.
• Who it’s for: Capital-intensive industries, including manufacturing, automation and digitalisation.
• Why it matters: Encourages reinvestment and expansion by reducing taxable income.

Reinvestment Allowance (RA)

• What it is: Tax allowance for companies reinvesting in expansion, modernisation or automation.
• Who it’s for: Manufacturing and agriculture sectors.
• Why it matters: Encourages productivity upgrades and long-term competitiveness.

Accelerated Capital Allowance (ACA)

• What it is: Faster depreciation on qualifying assets, including digital tools and e-Invoicing systems.
• Who it’s for: Businesses investing in digital transformation and compliance infrastructure.
• Why it matters: Reduces upfront tax costs for tech adoption and regulatory readiness.

Allowance for Increased Exports (AIE)

• What it is: Additional tax deductions for companies that increase export volumes.
• Who it’s for: Export-oriented manufacturers and service providers.
• Why it matters: Rewards export growth and supports Malaysia’s trade competitiveness.

• What it is: Concessionary tax rates (as low as 0%–20%) for high-tech manufacturing and services.
• Who it’s for: Companies in aerospace, semiconductors, medical devices and advanced services.
• Why it matters: Attracts foreign direct investment and promotes high-value activities.

• What it is: Targeted tax benefits and facilitation for businesses operating in designated economic clusters.
• Who it’s for: Companies located in SEZs such as Iskandar Malaysia, Northern Corridor and East Coast Economic Region.
• Why it matters: Encourages regional development and decentralised growth.