31.12.2018
We refer to the announcement by the Government of Malaysia on 12 June 2018, the updated version of which can be accessed here, regarding Malaysia’s commitment in the Organisation for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) international taxation initiatives.
In order to address the issue of base erosion and profit shifting, the OECD and the G20 countries have introduced the BEPS Action Plan as an international taxation standard. Based on the minimum standards of the BEPS Action 5, any ring fencing feature of a tax incentive regime will need to be removed.
Pursuant to the above, kindly be informed that the following export condition is removed from the conditions of the grant of MSC Malaysia Status and the incentives thereunder, with effect from 1 January 2019:
| Cluster | Condition | Foreign | Local |
| GBS & Data Centers | Exports | 70% exports by 5th year of grant of MSC Malaysia Status | 20% or RM0.5mil exports by 5th year of grant of MSC Malaysia Status, whichever is lower |
| Creative Content and Technology | 60% exports by 3rd year of grant of MSC Malaysia Status | NIL |
*For further information on changes to MSC Malaysia Bill of Guarantee (BoG) 5, please refer IMPORTANT UPDATE AND CHANGES ON MSC MALAYSIA BOG 5 here.
ISSUED BY MALAYSIA DIGITAL ECONOMY CORPORATION SDN BHD (MDEC)
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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.
Saya Digital #MalaysiaDigital
To find out more about MDEC’s Digital Economy initiatives, please visit us at www.mdec.my or follow us on:
For media queries, kindly contact:
Simon Yap
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Hazel Hassan
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