WHAT IS
MSC MALAYSIA ?

Established by the Malaysian government to accelerate the growth of the nation’s Digital Economy, the MSC Malaysia status provides eligible ICT-related businesses, both local and foreign, with a wide range of incentives, rights and privileges to promote continued growth.

Energising the Nation’s Digital Economy

Since its inception in 1996, the MSC Malaysia programme has managed to drive the nation’s Digital Economy to new heights.

  • 2,954

    Number of active MSC Malaysia status companies (as of May 2019)

  • RM472B

    Revenue generated as of 2018

  • 182,538

    Number of jobs created as of 2018

WHICH STAGE ARE YOU AT?

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

Apply For MSC Status

Get a head start in the digital industry by applying for MSC Malaysia status

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Already an MSC Status Company?

Simplify your daily operational activities by visiting our one-stop self-service portal for all MSC Malaysia transactions.

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Foreign Knowledge Workers

Looking to process your company’s Foreign Knowledge Worker’s (FKW) employment needs? Our eXpats Service Centre can help guide you through the process.

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Our OTHER SERVICES

In addition to the MSC Malaysia status, we also provide additional services that may prove helpful to companies. These include:

Facilities & Programmes

Discover our dedicated facilities and special programmes that aim to drive innovation to new heights

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MTEP

Learn more about our special programme that helps tech entrepreneurs achieve their dreams

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The Orbit

Discover our co-working space that is specially tailored towards the FinTech industry

LEARN MORE

DFTZ

Discover our strategic initiative that aims to intensify Malaysia’s presence in cross-border eCommerce

LEARN MORE

MSC MALAYSIA DIRECTORY

Discover the companies that fall under the MSC Malaysia umbrella

VIEW DIRECTORY

Announcements

Update of MSC Malaysia Status Tax Incentive Withdrawal of Withholding Tax Exemption For Income Received From MSC Malaysia Status Companies

Important Announcements

TAX INCENTIVE UPDATES WITHHOLDING TAX

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 6 July 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.

Changes to BOG 5 (Tax Exemption)

  1. 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).

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

  1. 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.
  2. 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.

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

  1. Applications for MSC Malaysia Status Services Incentive can be made starting from 2nd April 2019.
  2. For more details about the eligibility criteria, and qualifying promoted activities and conditions, please refer to detailed Application Guidelines here.
  3. Application Forms can be downloaded from here and the completed application is to be forwarded to [email protected].
  4. 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 [email protected].

FAQs

For frequently asked questions, please refer here

Issued by Malaysia Digital Economy Corporation Sdn Bhd (MDEC)

WITHDRAWAL OF WITHHOLDING TAX EXEMPTION FOR INCOME RECEIVED FROM MSC MALAYSIA STATUS COMPANIES

Dear Esteemed Client,

We refer to the Income Tax (Exemption) (No. 13) Order 2005 [P.U.(A)102/2005] (“Order”) on the exemption from withholding tax on certain types of income received by a non-resident company from an approved MSC status company.

Kindly be informed that the aforesaid exemption will only be effective until 31 December 2019. Necessary steps will be taken to revoke the Order with effect from 1 January 2020.

Kindly be reminded that the exemption is subject to the provisions stipulated under the Order. For further enquiries, please email to [email protected].

FAQs

For frequently asked questions, please refer here

Issued by Malaysia Digital Economy Corporation Sdn Bhd (MDEC)