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Cyberjaya’s strong partnerships and collaborations with government entities place the city in a unique position in providing insights, supports and valuable industry feedback.
Investment Incentives for Cyberjaya
Cyberjaya’s strong partnerships and collaborations with government entities place us in a unique position in providing insights, supports and valuable industry feedback. Access to financial facilities, a competitive research and development (R&D) environment as well as exemptions from regulatory restrictions, are among many attractive stimuli provided here. This is an ideal place for companies to build and expand their business with ease – making Cyberjaya the top choice for tech investors.
Tax
Incentives
Funding
Incentives
Expatriate
Related Incentives
Principle
Hub
Malaysia Digital Status
Incentives
Cyberview
Incentives
Tax Incentives
Tax Exemption
- Pioneer Status (PS) – Corporate Income Tax exemption of 70% or 100% of statutory income for 5-10 years.
- Investment Tax Allowance (ITA) – Allowance of 60% – 100% on qualifying capital expenditure (factory, plant, machinery or other equipment used for the approved project) incurred within 5 to 10 years from the date of first qualifying capital expenditure is incurred.
| Industry | Pioneer Status (PS) | Investment Tax Allowance (ITA) |
|---|---|---|
Contract R&D company
|
100% tax exemption of statutory income for 5 years | 100% on the qualifying capital expenditure incurred within 10 years. The allowance is offset against 70% of statutory income for each assessment year. |
R&D Company
|
100% on the qualifying capital expenditure incurred within 10 years. The allowance is offset against 70% of statutory income for each assessment year. |
| Industry | Pioneer Status (PS) | Investment Tax Allowance (ITA) |
|---|---|---|
| 70% tax exemption of statutory income for 3- 10 years | 100% on the qualifying capital expenditure incurred within 3 years. The allowance is offset against 70% of statutory income for each assessment year. |
| Industry | Pioneer Status (PS) | Investment Tax Allowance (ITA) |
|---|---|---|
| 70% tax exemption of statutory income for 5 years | 60% allowance of qualifying capital expenditure incurred within 5 years |
| Industry | Pioneer Status (PS) | Investment Tax Allowance (ITA) |
|---|---|---|
| projects in the transportation, communications and utilities sub-sector approved by the Minister of Finance (MOF) | Income tax exemption under Section 127 of the Income Tax Act 1967 or Investment Allowance (IA) under Schedule 7B of the Income Tax Act, 1967. Applications for this incentive should be submitted to MOF | |
Special income tax treatment at a flat rate of 15% for 5 consecutive years to non-resident individuals holding the key positions for strategic new investment by companies relocating their operations to Malaysia
Funding Incentives
Grants & Funding Facilitation
Grants & Funding Facilitation – Strong funding (government grant and private venture capital) are available for businesses at various stages in the life cycle including seed, startup, pre & post commercialisation (covering R&D, marketing and expansion costs).
- Domestic Investment Strategic Fund (DISF)
- Smart Automation Grant
Loan & Financing
Expatriate Related Incentives
Representative Office/Regional Office (RE/RO)
- RE/RO will be given expatriate post and the number allowed depends on the function and activities of the RE/RO.
- Minimum establishment of 2 years (depends on the merit of the case).
- Expatriate will only be considered for managerial and technical posts. The total number of employees should reflect the ideal composition of 2 expatriates to 1 Malaysian.
Expatriate Related Services
Expatriate post based on requirements of business plan subject to current policy of expats
Principal Hub
Tax Rate Incentive Package
The Principal Hub scheme offers an additional advantage to companies seeking to leverage on Malaysia as their centralised operating base to conduct its regional and global business operations.
- New Company- 2-tiered tax rate incentive package based on the level of commitment.
- Existing company- Tax rate of 10% on statutory income for 5 years.
Source:
https://investmalaysia.mida.gov.my/incentives/
https://mdec.my/expats/
https://esd.imi.gov.my/portal/
Malaysia Digital Status Incentives
Malaysia Digital Status
Malaysia Digital status is a recognition by the Government of Malaysia through the Malaysia Digital Economy Corporation (MDEC), for ICT and ICT-facilitated businesses that develop or use multimedia technologies to produce and enhance their products and services.
- Malaysia Digital status recognition by MDEC
- Pioneer Status privilege and 100% ITA on new investments made in Malaysia Digital Cybercities
- Freedom of ownership by exempting Malaysia Digital status companies from local ownership requirements
- Unrestricted employment of foreign knowledge workers
Cyberview Incentives
Cyberview Incentive
- Soft landing zone package – Key offerings include rental free co-working spaces, programmes & Cyberjaya Investment & Services Centre facilitation and services
- Affordable rental of commercial office spaces from as low as RM1.80/sqft per month
- Free use of shared facilities
- Business setup facilitation via Cyberjaya Investment & Services Centre
- Access to Cyberview Living Lab programme