Most incentives given by the Malaysian Government are in the form of Tax incentives. Pioneer status is given to companies producing certain products or servicing certain activities or operating at certain promoted areas. Pioneer status companies enjoy tax exemptions of a certain percentage depending on the activities and products of the company.
Other than this, there is also double tax incentive which means expenses incurred on certain activities can be deducted twice against taxable profits. Certain activities include promotion of exports, employee training programs, employing disabled persons and research and development.
There is also incentives for operational headquarters and this is applicable to wholly owned by foreigners. Operational headquarters must carry out specific activities mainly outsourced functions for its overseas branches
Of course, there are many criteria and requirements before you can qualify for these incentives. You are strongly advised to consult your professional tax advisor and no information in this post should be construed as an advice.
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