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Frequently Asked Questions (FAQ)
Q: The login screen freeze and I am getting the message "Too many failed login attempts. Please try again in a few minutes."
A: If you have typed in the wrong email and password for more than five times, your account will be locked for 10 minutes.
Please try again after 10 minutes with the correct email & password.
Q: At Company Validation page, the system unable to retrieve my company information.
A: Please fill in the exact details for Company Name and Company Registration Number (as registered previously with MIDA). This includes symbol characters (.) and abbreviations (Sdn Bhd).
Q: At Company Profile page, is the Registered Address refers to my company Office Address or Factory Address?
A: The Registered Address refers to the Office Address. Whereas the Factory / Premises Address need to be entered in another sections depending on the forms.
Q: I don't have any account with MIDA as the previous JPC Online used Webkey to login. How do I create an account?
A: If you don't have an account, you need to register for a new account to access the new InvestMalaysia system.
Q: I don't have any account with MIDA. I usually submit applications using my Manager's Credentials. What should I do?
A: You need to register as a new individual account and when it comes to submitting application, you can use your Manager's credential as Authorized Person (If permitted).
Q: Can I add multiple Authorized Person in the Company Profile?
A: Yes. However, please note that each Authorized Person need to have their own unique Digital Certificate registered.
Q: How do I contact MIDA regarding this online system?
A: Please log any questions/problem encountered via MIDA IT Helpdesk, which is available at the at the Login Page.
Q: I have previously submitted an application to MIDA via InvestMalaysia. Do I have to re-enter detail information (such as company profile, application details) for new application?
A: No. Upon completing your first application through InvestMalaysia, the company & application details will be saved for your company future used. For the next new application entry, the system will prompt a message whether you would like to use the previous details or to re-enter the forms again from the beginning. However, you need to re-attach all relevant supporting documents as each document is unique for each application. Please ensure to update any changes to your company profile.
Q: Can I add multiple company under my supervision?
A: Yes. You may assign the company under your account and it will be verified by MIDA Admin.
Q: Can I add multiple contact person?
A: Yes. However, each contact person need to have his/her own individual account (registered with MIDA).
Q: The screen turn blank/freeze after I verified my account.
A: If the system screen turn blank/freeze, you are advise to close the tab and re-login into the system.
Q: I'm not at the office, so I am unable to access my company email in order to activate my InvestMalaysia account using public WIFI. What should I do to login to the system?
A: If you're unable to access the email sent for activation by MIDA InvestMalaysia;
1) Please go to https://investmalaysia.mida.gov.my
2) Register a new account with another accessible email. This is to make sure you can access the new email for email activation
3) You will receive another email activation and once activated, you may log into the system
Q: Does the contact or authorized person have an access to the application form?
A: Yes, both contact and the authorised person may have access to the application form if they have their own registered account.
Q: What web browser does the InvestMalaysia supported?
A: InvestMalaysia is supported by all web browser (latest version).
Q: Can multiple contact persons have access to the same section across the application form?
A: Yes. Registered contact persons share the same access to all section across the application form.
Q: The current Surat Pengesahan MIDA will expire on Dec 2020. Do I need to re-apply when InvestMalaysia SPM goes live?
A: No. Unless you have a new application for SPM.
Q: The current Digital Certificate will expire on Nov 2019. Will the certificate still valid when InvestMalaysia SPM goes live or do I need to re-apply?
A: No need to re-apply since the certificate is still valid.
Q: I intend to renew the Digital Certificate a month earlier from its expiry date. What is the new expiry date for it?
A: Each certificate validity is 2 years from the date of issuance. You can only renew the certificate after the expiry date.
Q: How long will it takes for the new system to process the application for SPM?
A: Based on MIDA client charter for SPM, it will take 5 working days to process.
Q: For application MRO-ST (Aerospace), if the description for item 33A & 33B is too much, where should the company fill in all the information needed?
A: Please use Appendix I and II to fill in the details and it must be uploaded in the supporting document area.
Q: Can I change the ‘Application Sector type’ after I have submitted the request for confirmation letter?
A: Please note that you are not allowed to change the ‘Application Sector type’ once you have submitted the request. You are advised to delete the existing request and fill-up a New Confirmation Letter Request by choosing the right option.
General
Manufacturing Licence
Incentives for Investment
Expatriate Posts
Duty Exemption
Services
Post Licensing and Post Incentive Application
Tax Incentives for Company Relocating into Malaysia under National Economic Recovery Plan (PENJANA)
How does MIDA assist investors?
<p>MIDA offers the following assistance to investors:</p>
<ol>
<li>Direct consultation and co-operation with relevant agencies at both the Federal and State levels in matters such as:
<ul>
<li>Securing infrastructural facilities, including land, factory sites, electricity and water supplies, telecommunication and others,</li>
<li>Expediting approvals relating to Building Plans, Certificate of Fitness and Business Licences</li>
</ul>
</li>
<li>To handhold and assist investors in obtaining all necessary approvals for projects until they are operational</li>
<li>To extend support to existing companies in planning expansion, diversification and other reinvestment of their projects</li>
<li>To facilitate visits and site investigations and supply chain infrastructures.</li>
</ol>
<p>To further enhance MIDA’s role in assisting investors, senior representatives from key government agencies are based at MIDA’s Headquarters in Kuala Lumpur to advise investors on government policies and procedures. These representatives include officials from the Department of Labour, Immigration Department, Royal Malaysian Customs, Department of Environment, Tenaga Nasional Berhad and Telekom Malaysia Berhad</p>
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What are the types of applications evaluated by MIDA?
<p>MIDA evaluates the following:</p>
<ul>
<li>Manufacturing Licence under the Industrial Coordination Act, 1975</li>
<li>Incentives</li>
<li>Exemption from Custom Duties</li>
<li>Expatriate Posts</li>
<li>Status for regional establishments</li>
<li>Status for R&D company</li>
<li>Matching Grants</li>
</ul>
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What are the equity requirements for new, expansion or diversification projects?
Effective from 17 June 2003, foreign investors can now hold 100% equity for all investments in new projects, as well as expansion or diversification projects by existing companies in the manufacturing sectors, irrespective of the level of exports.
How does MIDA act as a single window in facilitating and assisting investors?
To further enhance MIDA's role of assisting investors, senior representatives from key agencies are stationed at MIDA's headquarters in Kuala Lumpur to advise investors on government policies and procedures. These representatives include officials from the Department of Labour, Immigration Department, Royal Customs Malaysia, Department of Environment, Tenaga Nasional Berhad and Telekom Malaysia Berhad.
What are the criteria to apply for a Manufacturing Licence?
<p>A company with shareholder’s fund of RM2.5 million and above <strong>OR</strong> full-time manpower of 75 people or more can apply for a Manufacturing Licence.</p>
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How long does it take to approve for Manufacturing Licence?
<p>Manufacturing Licence will be approved within four weeks (normal track) from the date of complete information received or two days from the date of complete information received for non-sensitive activities.</p>
How can I find out the status of my company’s application?
All applications received will be issued an acknowledgement letter which will state the names of the Officer / Deputy Director / Director of the relevant Industry Division. Applicants are advised to contact the respective officers on the application status.
If my company is exempted from a manufacturing licence, what other documents can I obtain from MIDA?
<p>The applicant may obtain a ‘Confirmation Letter for Exemption from Manufacturing License’ by submitting their application via <a href="https://investmalaysia.mida.gov.my/EIP/InvestMalaysia.aspx" target="_blank"><strong>https://investmalaysia.mida.gov.my/EIP/InvestMalaysia.aspx</strong></a> and should submit a copy of the following documents:-</p>
<ul>
<li>Memorandum and Articles of Association/ Corporate profile from Companies Commission of Malaysia (CCM)</li>
<li>Business Licence from the Local Authorities (if applicable)</li>
<li>Manufacturing Process Flow Chart</li>
</ul>
Can I submit my application for the manufacturing licence online?
<p>Applicants may submit their applications via <a href="https://investmalaysia.mida.gov.my/EIP/InvestMalaysia.aspx" target="_blank"><strong>https://investmalaysia.mida.gov.my/EIP/InvestMalaysia.aspx</strong></a> </p>
What are the main incentives for the manufacturing and services sectors?
<p>There are two major tax incentives for the manufacturing and services sectors:</p>
<ul>
<li>Pioneer Status (PS) – Income tax exemption of 70% – 100% of statutory income for 5 to 10 years. Unabsorbed capital allowances and accumulated losses incurred during the pioneer period can be carried forward and deducted from the post pioneer status of the company.</li>
<li>Investment Tax Allowance (ITA) – An 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 the first qualifying capital expenditure is incurred.</li>
</ul>
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What is the difference between Pioneer Status and Investment Tax Allowance?
A company approved with a Pioneer Status certificate can enjoy income tax exemption between 70% - 100% of statutory income for 5 to 10 years, whereas, for Investment Tax Allowance, a company can get allowances between 60% - 100% on qualifying capital expenditure incurred within a period of 5 to 10 years. For projects with a longer gestation period and high capital expenditure, it would be more beneficial to opt for Investment Tax Allowance. Companies should study the options before applying either for Pioneer Status or Investment Tax Allowance.
How does a company apply for Pioneer Status/Investment Tax Allowance?
<p>A company can apply for the incentives by filling up the relevant forms (ICA1 – 7) that are available on MIDA’s website (<strong><a href="https://www.mida.gov.my/forms-and-guidelines/" target="_blank">http://www.mida.gov.my/home/forms-&-guidelines/posts/</a></strong>).</p>
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If my company does not have a Manufacturing Licence, can I apply for Pioneer Status/ Investment Tax Allowance?
A company exempted from Manufacturing Licence is eligible to apply for Pioneer Status/Investment Tax Allowance if the products/activities are promoted and the project has fulfilled other related criteria.
How can I confirm that my products/activities are eligible to apply for the incentives?
<p>You may check from the <a href="https://www.mida.gov.my/setting-up-content/promoted-activities/" target="_blank">list of promoted activities & products available</a> in our websites or through our publication ‘Malaysia: Investment in the Manufacturing Sector – Policies, Incentives and Facilities’.</p>
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How long does it take to consider the application for the incentives?
The incentives will be processed, and the decision will be made within six weeks from the date of complete information received.
How can I find out the status of my company’s application for the incentive?
All applications received will be issued acknowledgement letters which will state the names of the Officer/Deputy Director/Director of the relevant Industry Division. Applicants are advised to contact the respective officers on the application status.
What is the difference between key post and the term post?
<p>A <strong>key post</strong> is a post that can be held indefinitely by a foreigner based on the foreign ownership of the company. It is also dependent on the amount of paid-up capital of the company and type of product/industries involved. The approval is subjected to a minimum amount of paid-up capital of the company.</p>
<p>A <strong>term post</strong> is a post approved for up to <strong>3-5 years</strong> for executive posts that require professional qualifications and practical experience, and <strong>2 years</strong> for non-executive posts that require technical skills and experience. This is subject to the unavailability of Malaysians to fill up the post. Please check the latest policies and guidelines under the Ministry of Human Resources <a href="https://www.mohr.gov.my/" target="_blank">(<strong>https://mohr.gov.my/</strong>)</a>.</p>
<p>For companies to be eligible to apply for these posts, Malaysians must be trained to eventually take over the posts.</p>
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How to apply for a new expatriate post(s) for a new or existing company?
<p>A company can apply to MIDA by using ICA/JA1 form or other relevant forms (please refer to the guidelines in the website). These forms can be downloaded from MIDA’s website ( <strong><a href="https://www.mida.gov.my/forms-and-guidelines/" target="_blank">https://www.mida.gov.my/forms-and-guidelines/</a></strong>)</p>
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How to apply for an extension or additional expatriate post?
<p>The applicant can apply by to MIDA using form ICA/JA2 or other relevant forms. These forms can be downloaded from MIDA’s website (<strong><a href="https://www.mida.gov.my/forms-and-guidelines/" target="_blank">https://www.mida.gov.my/forms-and-guidelines/</a></strong>). The evaluation for an extension or additional expatriate post is subject to strong justifications by the company and current Government policies.</p>
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How long does it take for a decision on the application for expatriate posts?
The application for expatriate posts will be processed and a decision made within four weeks from the date of complete information received.
How does a company apply for import duty and/or sales tax exemption?
<p>Applications for import duty and/or sales tax exemption need to be submitted online via MIDA’s Online Application Portal <a href="https://investmalaysia.mida.gov.my/" target="_blank">(<strong>https://investmalaysia.mida.gov.my</strong>)</a>.</p>
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What type of applications that can be submitted for import duty and/or sales tax exemption?
<p>Applications for import duty and/or sales tax exemption which involve the following need to be submitted online via <strong>https://investmalaysia.mida.gov.my</strong>:</p>
<ul>
<li>Import duty and/or sales tax exemption on machinery/equipment for selected activities in the Agriculture Sector</li>
<li>Import duty and/or sales tax exemption on raw materials/component for Manufacturing Sectors</li>
<li>Import duty and/or sales tax exemption on machinery, equipment and material for companies in selected services sectors as follows;
<ol>
<li>Research & development (R&D) </li>
<li>Private higher education institution </li>
<li>Private higher training institution (science, technical or vocational) </li>
<li>Tourism project (without accommodation)</li>
</ol>
</li>
</ul>
<p>Application for MIDA Confirmation Letter or Surat Pengesahan MIDA (SPM) to claim import duty and/or sales tax exemption from the Royal Malaysian Customs Department on machinery/equipment/spare parts/prime movers/container trailers for the following::</p>
<ul>
<li>Manufacturers in Principal Customs Area (PCA)</li>
<li>Companies Engaged in Hotel Business</li>
<li>Haulage Operators</li>
<li>Aerospace Maintenance, Repair & Overhaul (MRO) companies</li>
</ul>
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How long does it take for a decision on the application of import duty and/or sales tax exemption?
The decision shall be conveyed within 4 weeks from the date of complete information received.
What are the supporting documents required to be attached in the online application?
<p>A company applying for the exemption should submit a copy of the following documents:</p>
<ul>
<li>Manufacturing Licence issued under the Industrial Coordination Act 1975 or Confirmation Letter for a company exempted from Manufacturing Licence under the Industrial Coordination Act 1975</li>
<li>Tax incentive approval under the Promotion of Investment Act, 1986 (PIA) or Income Tax Act, 1967 (if applicable)</li>
<li>Registration certificate or the letter of acknowledgement if the application for the registration certificate is pending for approval from the Department of Occupational Safety and Health (DOSH) (if applicable)</li>
<li>Company profile (latest printout) generated from Companies Commission of Malaysia (SSM) e-Info Services)</li>
<li>Flow chart of manufacturing process</li>
<li>The layout plan for the machinery and equipment in the approved manufacturer’s premise and to indicate where the machinery and equipment will be located</li>
</ul>
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What is the procedure to apply for import duty and/or sales tax exemption?
<p>Please refer to the guidelines and procedures for import duty and/or sales tax exemption application in our website on the following link:</p>
<p><a href="https://www.mida.gov.my/forms-and-guidelines/#tab3" target="_blank">https://www.mida.gov.my/forms-and-guidelines/#tab3</a></p>
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How does a company apply for a digital certificate?
<p>Digital certificate applications need to be submitted online via <strong><a href="https://mpaychannel.mida.gov.my/login.xhtml" target="_blank">https://mpaychannel.mida.gov.my/login.xhtml</a></strong></p>
<p>Please refer to the guidelines and procedures on the following link:<br />
<strong><a href="https://mpaychannel.mida.gov.my/resources/documents/User%20Manual%20for%20MPayChannel%20Ver2.1.pdf" target="_blank">https://mpaychannel.mida.gov.my/resources/documents/User%20Manual%20for%20MPayChannel%20Ver2.1.pdf</a></strong></p>
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Could a manufacturing company in the Free Industrial Zone (FIZ)/Licenced Manufacturing Warehouse (LMW) apply for duty exemption?
Effective from 1 January 2011, all applications for duty exemption by manufacturing companies in the Free Industrial Zones (FIZ)/Licenced Manufacturing Warehouse (LMW) for sale of their finished goods to Principal Customs Area (PCA) should be submitted directly to the Royal Malaysian Customs Department/nearest Customs station.
What are services sub-sectors that are eligible to apply for status and/or incentives and/or expatriate applications through MIDA?
<p>Companies undertaking the following selected services or activities may apply for status and/or incentives and/or expatriate:</p>
<ul>
<li>Research and Development;</li>
<li>Principal Hub;</li>
<li>Operational Headquarters (OHQ)/ International Procurement Centres (IPC) / Regional Distribution Centres (RDC);</li>
<li>International Procurement Center/Regional Distribution Centers;</li>
<li>Integrated Logistics Services (ILS);</li>
<li>International Integrated Logistics Services (IILS);</li>
<li>Representative Office/ Regional Office (RE/RO);</li>
<li>Technical/Vocational/Science Training Institutes;</li>
<li>Hotels/Tourism Projects;</li>
<li>Mines Wellness City (MWC);</li>
<li>Green Technology;</li>
<li>Waste Eco Park;</li>
<li>Private Healthcare;</li>
<li>Cold Chain Facilities and Services; and</li>
<li>Other Services Activities Promoted under the Promotion of Investments Act, 1986 and Income Tax Act, 1967</li>
</ul>
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What is the procedure to apply for status and/or incentives and/or expatriate application for the above services sub-sectors?
<p>Applicants should submit the relevant application forms which can be downloaded from MIDA’s website (<a href="http:// https://www.mida.gov.my/forms-and-guidelines/"> https://www.mida.gov.my/forms-and-guidelines/</a>). The forms also can be obtained from the Business Information Center at MIDA HQ or the nearest MIDA’s office.</p>
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How long does it take to receive a decision for the applications?
The applications will be processed, and a decision will be conveyed to the applicants within six weeks from the date of complete information received.
i. PIONEER STATUS CERTIFICATE When to apply for Pioneer Status Certificate?
Within 24 months (2 years) from the date of Incentive Approval Letter. At the same time, the company must achieve 30% of the commercial production within three consecutive months (based on mass production), or the company must have first sales invoice (based on customer order/demand). The company must also submit their audited financial statement at least for one year.
How to apply for Pioneer Status Certificate?
<p>The application can be applied by filling up specific forms. The forms can be downloaded from MIDA website - Post Approval: Application for Pioneer Status Certificate (<a href="http://mida.gov.my/forms-and-guidelines/"><strong>http://mida.gov.my/forms-and-guidelines/</strong></a>).</p>
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What are the main criteria for the determination of Production Date in the Pioneer Status Certificate?
<p>The Production Date can be determined as follows:</p>
<ul>
<li>If the company’s production is based on mass production, it has to reach 30% of the commercial production/installed capacity within three (3) consecutive months.</li>
<li>If the company’s production is based on customer demand/order, the first sales invoice should be submitted for the determination of production date.</li>
</ul>
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How long does it take to process the Pioneer Status Certificate application?
The application of Pioneer Status Certificate will be processed within 6 weeks starting from the date complete information received by MIDA.
Is there any chance that company to extend their application of Pioneer Status Certificate if they unable to meet the requirement?
Yes. The company can apply for an extension of Pioneer Status Certificate application to MIDA with a valid reason, within the time period stipulated in the approval letter. The extension of time will be given based on the merits and justification of the application.
What if the company failed to submit the application of Pioneer Status Certificate within the two years grace period and without notice?
The approval of Pioneer Status will be withdrawn, and MIDA will send a 30- days notice for the company to justify. If the company fails to provide answers within 30 days, MIDA will proceed with the withdrawal of the incentive.
Is it necessary to provide the company’s seal and verification of document?
Yes. A company is required to provide the company’s seal and verification as a tool to ensure that it is a genuine application and to avoid any misuse of information.
ii. INVESTMENT TAX ALLOWANCE (ITA) How is the procedure to apply for Effective Date and Verification of Compliance for Investment Tax Allowance (ITA) Incentive?
<p>There are two stages in which the company is required to submit the application:</p>
<ul>
<li>ITA I – Determination of Effective Date (ITA I form)</li>
<li>ITA II – Verifications of Compliance (ITA II form)</li>
</ul>
<p>Forms can be retrieved from here <a href="https://www.mida.gov.my/forms-and-guidelines/">https://www.mida.gov.my/forms-and-guidelines/</a></p>
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When to apply for the Determination of Effective Date for the Investment Tax Allowance (ITA I)?
A company is given two years from the date of the approval letter to submit an application for ITA I that is the Determination of Effective Date by providing the first qualifying capital expenditure invoice.
When to apply for the Verification of Compliance to Investment Tax Allowance Conditions (ITA II)?
A company is requested to submit ITA II application for the Verification of Compliance before they claim to IRB and definitely before the five year incentives period expires.
Is it necessary to provide the company’s seal and verification of document?
Yes. A company is required to provide the company’s seal and verification as a tool to ensure the application is genuine and to avoid any misused information.
How long does it take to process the ITA I/ ITA II applications?
It will take up to 6 weeks starting from the date complete information received by MIDA.
iii. EQUITY How to apply for the transfer of shares and waiver of the equity conditions or any matters related to the equity condition?
<p>A formal letter should be submitted to MIDA inclusive of the following documents:</p>
<p><strong>A. For transfer of shares:</strong></p>
<ul>
<li>A copy of Manufacturing Licence with the conditions</li>
<li>Form 24</li>
<li>Form 49</li>
<li>Form 32A</li>
<li>Form of Annual Return</li>
<li>Board Directors Resolution</li>
<li>Audited Financial Statements for the past three years</li>
<li>Export Performance (3 Years) – Certify true copy by an external auditor</li>
<li>Equity Structure before and after the Transfer of Shares</li>
<li>Justification for the Transfer of Shares.</li>
<li>Future Planning (e.g. expansion project, etc.)</li>
</ul>
<p>(All documents must be certified true copy by the company secretary except for the Export Performance)</p>
<p><strong>B. For waiver of equity condition:</strong></p>
<ul>
<li>A copy of Manufacturing Licence with the conditions</li>
<li>Latest Form of Annual Return</li>
<li>Audited Financial Statement for the past three years</li>
<li>Export Performance for the past three years</li>
<li>Expansion plans and new investments are undertaken/to be undertaken in the future (state details and value of investment involved)</li>
<li>New Technology or Transfer of Technology proposed and benefits accrued to Malaysia (e.g. employment opportunities, new export markets, etc.)</li>
<li>Changes in Issued and Paid-Up Share Capital (from incorporation till current date)</li>
<li>Justification for the proposed waiver</li>
</ul>
<p>Note: – Where the shares of the company are held by a SDN. BHD. company, a certified copy of the Annual Return Form of the shareholder company (SDN. BHD. company) is required. – Where the shares of the company are held by a BHD company, a certified copy of the Annual Return Form of the shareholder company (BHD company) and a summary of the Register of Depositor/shareholding details is required.</p>
<p><strong>C. Others<br />
<small>(any amendment related to the equity such as change of company’s name, change of shareholder, change of board director, an amendment to the equity structure, etc)</small></strong></p>
<ul>
<li>A letter of request</li>
<li>A copy of Manufacturing Licence with conditions</li>
<li>Form 13 (for change of name)</li>
<li>Equity structure (for change of shareholder)</li>
<li>Name of current and previous board director (for change of board director)</li>
<li>Justification to amend the equity structure (for an amendment to the equity conditions)</li>
</ul>
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How long does it take to process the equity application?
<p>The equity application (transfer of share and waiver of equity condition, etc.) will take six weeks from the complete information received.</p>
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What are tax incentives for a company relocating into Malaysia?
<p>Tax incentives offered to a new and existing company relocating into Malaysia under the Income Tax Act 1967 are as follows:</p>
<p><img src="https://www.mida.gov.my/wp-content/uploads/2020/08/1.jpg" /></p>
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What is the definition of a new company?
<p><strong><u>New Company</u></strong></p>
<ul>
<li>
<p>Company relocating its manufacturing facility for eligible activities from any country to Malaysia; <strong><u>or</u></strong></p>
</li>
<li>
<p>Company establishing its new operation in Malaysia; <strong><u>and</u></strong></p>
</li>
<li>
<p>Do not have existing manufacturing operations in Malaysia.</p>
</li>
</ul>
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What is the definition of an existing company?
<p><strong><u>Existing Company</u></strong></p>
<p>Foreign or locally owned company that has existing manufacturing operations in Malaysia and relocate its manufacturing operation from outside Malaysia for a new business segment. The products from the new business segment are not part of the expansion project for existing products.</p>
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What is a Special Tax Rate?
<p>A Special Tax Rate is offered to a new company with 0% tax rate on taxable income from the approved business activity for a period of up to 15 years subject to the specified amount of capital expenditure.</p>
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What are the criteria for this incentive?
<ul>
<li>
<p>The company meets the definitions of ‘new company’ or ‘existing company’ as outlined under this incentive.</p>
</li>
<li>
<p>The company to undertake manufacturing activities excluding the listed activities as in <a href="https://www.mida.gov.my/wp-content/uploads/2020/08/Appendix-A-Products-or-Activities-Not-Eligible.pdf" target="_blank">Appendix A</a>.</p>
</li>
</ul>
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What are the conditions for this incentive?
<ul>
<li>
<p>The new company or existing company to incur the first capital expenditure within 1 year from the approval date;</p>
</li>
<li>
<p>The company to incur the qualifying capital expenditure within 3 years from the date of the first capital expenditure incurred; <strong><u>and</u></strong></p>
</li>
<li>
<p>The company will be subjected to conditions related to the Employment and Vendor Development Program.</p>
</li>
</ul>
<p>Details of these conditions will be listed in the Tax Incentive Guidelines at MIDA’s website:<a href="http:// www.mida.gov.my"><strong> www.mida.gov.my</strong></a></p>
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What percentage of statutory income can be deducted for an existing company?
<p>For the existing company, this incentive offers an Investment Tax Allowance (ITA) of 100% of qualifying capital expenditure incurred within a period of 5 years. The allowance is offset against 100% from the statutory income of the activity.</p>
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What are the types of qualifying/eligible capital expenditure?
<p>The qualifying/eligible capital expenditures are the same as stipulated under the Section 29 (7) Promotion of Investments Act 1986 which are capital expenditure incurred on factory building (excluding land) or any plant and machinery used in Malaysia.</p>
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What are the additional conditions for an existing company who is currently enjoying a tax incentive?
<p>The existing company must keep separate accounts or incorporate a new entity to undertake such activities.</p>
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What is the procedure to apply for this incentive?
<p>Company may submit an application to the Malaysian Investment Development Authority (MIDA) before<br />
<strong>31 December 2021.</strong></p>
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