KUALA LUMPUR: Malaysia’s Ministry of International Trade and Industry revealed tax incentives on August 9th targeting the shipping industry. Incentives will be applied with immediate effect and will be available for periods of five years.
Shipbuilding incentives will be applied to both shipbuilding companies as well as those involved in supporting industries such as ship repair. In terms of their structure, incentives target both existing and prospective investors. Those involved or considering investment in the aforementioned industries should make note of the following incentive particulars:
First time investors will be eligible for pioneer status in Malaysia for a period of five years. Under this status, investors may exempt up to 70 percent of their statutory income from corporate income taxation. Existing and first time investors will be allowed to deduct 60 percent of all capital expenditure for a period of five years. It should be noted, however, that first time investors will be required to choose between capex deductions and pioneer deductions.
Applying for incentives: All applications will be evaluated on an individual basis by the Malaysian Investment Development Authority.
