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:

*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)