KUALA LUMPUR, June 5 — To encourage foreign investors to set up their businesses in Malaysia, the government is offering a zero tax rate for up to 15 years, said Prime Minister Tan Sri Muhyiddin Yassin under the Short-Term Economic Recovery Plan dubbed Penjana.
The new investors need to relocate their businesses to Malaysia within one year of receiving approval from the government, and the amount stipulated in the investment must be fulfilled within three years.
“The first zero tax rate will be for 10 years for investments between RM300 to RM500 million in the manufacturing and fixed property investment.
“If the investment is in excess of RM500 million they will get a tax exemption of up to 15 years,” said Muhyiddin today during his special address.
For existing foreign companies that move their facilities from overseas to Malaysia, they will also qualify for a 100 per cent tax allowance for five years.
Both these incentives will kick in for those who apply for them between July 1 and December 31, 2020.
Muhyiddin also added that the government is allocating RM50 million to the Malaysian Investment Development Authority for promotional and marketing activities.
Meanwhile, the tourism sector which has been worse hit by the pandemic will get several tax deferments.
“We are also extending the deferment of taxes from April 1 until September 30, 2020 for all hoteliers and airline operators. The extension will start from October 2020 until December 31, 2020.
“We are also exempting all tourism taxes from July 1, 2020 until June 30, 2021,” added Muhyiddin.
“Tax exemptions will also be extended from July 1, 2020 until June 30, 2021 for premise operators while we are also extending the exemption of travel taxes of up to RM1,000 until December 31, 2021,” he added.
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