ANNOUNCEMENT ON THE OFFICIAL LAUNCH OF MALAYSIA DIGITAL (MD) TAX INCENTIVE

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Dear Esteemed Clients,

We are delighted to announce the official launch of the Malaysia Digital (MD) Tax Incentive, as unveiled today on 31st May 2024. This outcome-based tax incentive is offered to eligible MD companies proposing to undertake qualifying activities by leveraging any of the following promoted tech enablers:

  • Artificial Intelligence (AI) and/or Big Data Analytics (BDA)
  • Internet of Things (IoT)
  • Cybersecurity
  • Cloud
  • Blockchain
  • Drone Technology
  • Creative Media Technology including Extended Reality (XR) and/or Mixed Reality(MR)
  • Integrated Circuit (IC) Design with Embedded Software
  • Robotics and/or Automation
  • Advanced Network Connectivity and/or Telecommunication Technology.

The MD Tax Incentive offers the following options:

  1. New Investment Incentive
    1. a.Reduced Tax Rate (RTR): 0% RTR on qualifying intellectual property (IP) income and 10% or 5% RTR on qualifying non-IP income for up to 10 years; or
    2. b. Investment Tax Allowance (ITA): 60% or 100% of qualifying capital expenditure against up to 100% statutory income for up to 5 years.
  2. Expansion Incentive
    1. a. Reduced Tax Rate (RTR): 15% RTR on qualifying IP and non-IP incomes for up to 5 years; or
    2. b. Investment Tax Allowance (ITA): 30% or 60% of qualifying capital expenditure against up to 100% statutory income for up to 5 years.

Eligible MD companies may submit their applications via the MD Platform. Detailed information, including guidelines and FAQ can be accessed HERE.

For further inquiries or assistance, please contact our dedicated team at [email protected].

ISSUED BY MALAYSIA DIGITAL ECONOMY CORPORATION (MDEC) SDN. BHD.
31 MAY 2024.