ARTICLE

Insight

Technology Incentives

Digital Technology Providers: 0% to 10% income tax rate for up to 10 years (New Company), or 10% for up to 10 years (Existing Company).

 

Digital Infrastructure Providers: Investment Tax Allowance up to 100% on qualifying capital expenditure for up to 10 years. This allowance can be set-off against up to 100% of statutory income.

 

Applications must be received by MIDA from 30 October 2021 to 31 December 2025.

 

Extension for four years from 2022 until 2025 on tax incentive for Structured Internship Programme (SIP) and will be expanded to include students at the academic levels of Master’s Degree, Professional Certificate and SKM Level 1 and 2.

 

Tax incentives for anchor companies under the vendor development programme:

  • Deductions for qualifying operating expenses be increased up to RM500,000 per year of assessment;
  • The tax incentive be extended for 5 years for anchor companies that have signed MoU with MEDAC; and
  • Deductions are given for 3 consecutive years of assessment.
     

MoU must be signed with MEDAC from 1 January 2021 to 31 December 2025.

 

alt text

Prev
Corporate Tax
Next
Stamp Duty

Author(s)

Akmaluddin Mustajid
Director,

Digital Consultancy


Mohd Aizat Jamil
Assistant Director,

Digital Consultancy


For more insights
alerts