Header Msc Malaysia

MSC Malaysia

Important Announcement

Update Of MSC Malaysia Status Tax Incentive


    Background

  1. We refer to the announcement by the Government of Malaysia on 12 June 2018, Malaysia’s Commitment in International Tax Standard, and the subsequent announcement by MDEC on 28 December 2018, titled Important Update and Changes on MSC Malaysia BOG 5.
  2. As stated in the aforesaid announcements, the identified tax incentives of Malaysia will need to be reviewed and amended to be consistent with the international standards, which also include the MSC Malaysia Bill of Guarantee (BOG) 5 (Tax Exemption).
  3. In accordance with the above exercise, the grant of MSC Malaysia Status and its incentives, including extension of income tax exemption period, or adding new MSC Malaysia Qualifying Activities, has been put on hold since 1 July 2018.

  4. Changes to BOG 5 (Tax Exemption)

  5. Previously, the tax exemption for MSC Malaysia Status was granted for the income derived from MSC Malaysia Approved Activities. Moving forward, the tax exemption will be granted for income derived from either services activities (Services Incentive) and/or intellectual property (IP Incentive).

  6. Status Update: Approval of MSC Malaysia Status Services Incentive (Non-IP)

  7. The MSC Malaysia Status Services Incentive has been approved by the Government and will be regulated under the new Income Tax (Exemption) (No. 10) Order 2018 [P.U.(A) 389/2018], which was gazetted on 31 December 2018.
  8. As for the MSC Malaysia Status IP Incentive, the policy is still under review process by the Government. MDEC will be releasing further information in due course.

  9. Application of MSC Malaysia Status Services Incentive (Non-IP)

  10. Applications for MSC Malaysia Status Services Incentive can be made starting from 2nd April 2019.
  11. For more details about the eligibility criteria, and qualifying promoted activities and conditions, please refer to detailed Application Guidelines here.
  12. Application Forms can be downloaded from here and the completed application is to be forwarded to mscapplication@mdec.com.my.
  13. For further enquiries, please contact MDEC Client Contact Centre (CliC) at 1-800-88-8338 (within Malaysia) or +603 8315 3000 (overseas) or email at clic@mdec.com.my.

  14. FAQs

  15. For frequently asked questions, please refer here.

ISSUED BY MALAYSIA DIGITAL ECONOMY CORPORATION SDN BHD (MDEC)

MSC Malaysia, A winning strategy

MSC Malaysia Status is awarded by the Government of Malaysia to eligible local and foreign ICT related businesses. MSC Malaysia Status companies are eligible for attractive incentives, rights and privileges which promote continued growth for businesses, the industry and the Malaysian economy. With 3,241 active MSC Malaysia Status companies, a total of RM47.1 billion in revenue generated and 167,044 jobs created, MSC Malaysia continues to lead the way in developing the digital economy.

3,241

Active companies*

RM 47.1b

Revenue generated**

167,044

Jobs created**

*As of 22 Feb 2018
**MSC Malaysia Annual Report 2016

WHY APPLY FOR MSC MALAYSIA STATUS?

Enjoy MSC Malaysia Bill of Guarantees (BOGs)

The grant of MSC Malaysia Status entitles qualified entities to a set of incentives, rights and privileges from the Government of Malaysia, namely the MSC Malaysia Bill of Guarantees (BOGs).

Leverage our world-class infrastructure

Get ready access to high-speed broadband and fibre optics connectivity for your business.

Learn more about Cybercities and Cybercentres

Be eligible for financial incentives

Companies with MSC Malaysia Status are eligible to apply for tax exemptions and grants on approved MSC activities.

Access local and global industry talents

Companies with MSC Malaysia Status can source and hire local and foreign knowledge workers to ensure they have the best expertise locally and from around the world to grow their business.

Assistance and support from a one-stop agency

Malaysian Digital Economy Corporation (MDEC) is a one-stop hub for all applications and services related to MSC Malaysia Status; minimizing cost, time, and effort in getting your company accredited.

Learn more about MDEC

WHY APPLY FOR MSC MALAYSIA STATUS?

Enjoy MSC Malaysia Bill of Guarantees (BOGs)

The grant of MSC Malaysia Status entitles qualified entities to a set of incentives, rights and privileges from the Government of Malaysia, namely the MSC Malaysia Bill of Guarantees (BOGs).

Learn more about the Bill of Guarentees (BOGs)

Leverage our world-class infrastructure

Get ready access to high-speed broadband and fibre optics connectivity for your business.

Learn more about Cybercities and Cybercentres

Be eligible for financial incentives

Companies with MSC Malaysia Status are eligible to apply for tax exemptions and grants on approved MSC activities.

Learn more about incentives for your business

Access local and global industry talents

Companies with MSC Malaysia Status can source and hire local and foreign knowledge workers to ensure they have the best expertise locally and from around the world to grow their business.

Learn more about getting the expertise you need

Assistance and support from a one-stop agency

Malaysian Digital Economy Corporation (MDEC) is a one-stop hub for all applications and services related to MSC Malaysia Status; minimizing cost, time, and effort in getting your company accredited.

Learn more about MDEC

Why Malaysia

Discover why Malaysia remains one of the most attractive locations for global investors.

At the heart of ASEAN region and in direct reach of 600 million people.*

Ranked 4th in the world in best country to invest in.*

Ranked 24th in the world in ease of conducting business activities.*

Ranked 3rd in Global Services Location Index due to availability of high skilled labour in various industry sectors.*

Ranked 23rd out of 137 in global competitiveness.*

Ranked 4th in the world in protecting investors against misuse of corporate assets for personal gain.*

Ranked 4th for countries with the best healthcare in the world.*

Diversity is our strength in a country of 32 million people - where different ethnic groups come together to work as one.*

Now’s the time to accelerate your company’s growth

Apply today to reap the benefits of being an MSC Malaysia Status company and be a part of this success!

Download Application Form