Categories: 2021, industry, investors, MSC Malaysia

MSC Malaysia BOG 5 Revised Tax Regime comes into force on 1 July 2021

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 announcements 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) or email to clic@mdec.com.my