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UPDATE: Submission deadline for the application for Transition Under Services Incentive is extended to 31 October 2021

About the Revised Tax Regime​​​​​​​

In 2018, identified tax incentives in Malaysia, including MSC Malaysia, have been reviewed and revised to be consistent with the international taxation standards set out in the Organisation for Economic Co-operation and Development (OECD) Base Erosion Profit Shifting (BEPS) Action 5.

Pursuant to the aforesaid international taxation standards, existing MSC Malaysia Status companies can only enjoy the income tax exemption under the existing tax regime until certain cut-off dates.

For existing MSC Malaysia Status companies with services income, the companies have an option to enjoy the remaining period of tax exemption under the revised tax regime subject to compliance with applicable new conditions and approval. Companies intending to apply for transition into the revised tax regime (MSC Malaysia Status Services Incentive) are required to submit their application latest by 31 October 2021.

Kindly refer to MDEC’s announcement made in December 2019 titled “Update on MSC Malaysia Status Tax Incentive: Guidelines for Existing MSC Malaysia Status Companies (Services)” for further details.

Final Reminder: Application for Tax Transition (Services Incentive)

  • ​​​​​​​Eligible companies must fulfil the new conditions as set out in the Guidelines.
  • Companies intending to apply for transition under the Revised Regime must complete an online Application Form, Compliance Self Declaration Form (SDF) and submit the relevant supporting documents via our online form by 31 October 2021.
  • FAQ and presentation slides below are for your reference. 

Click here for FAQ
Click here for Presentation

For enquiries, kindly contact MDEC Client Contact Centre at 1-800-88-8338 (within Malaysia) / +603 8315 3000 (overseas)


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About Malaysia Digital Economy Corporation (MDEC)

Malaysia Digital Economy Corporation (MDEC) is the agency under the Ministry of Digital Malaysia leading the digital transformation of the economy for 25 years. We aim to enable a progressive, innovation-led digital economy.

MDEC will continue to lead Malaysia towards becoming a globally competitive digital nation through the development and execution of the Malaysia Digital initiative, which aims to create substantial digital economic spill-over through equitable access to digital tools, knowledge, and income opportunities.

Predicated on a new framework built upon three primary components – Agility, Flexibility, and Relevance – Malaysia Digital is set to enhance Malaysia’s value proposition to attract digital investments, firmly establishing Malaysia as the digital hub of ASEAN.

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