Malaysia Digital Economy Corporation , with the support of the Ministry of Digital and the Ministry of Finance, has introduced an innovative tax incentive scheme for Malaysian digital companies.
The new MD tax incentive scheme offers a range of benefits for digital companies leveraging cutting-edge technologies such as artificial intelligence, cybersecurity, blockchain and advanced network connectivity. Eligible MD companies can benefit from competitive reduced corporate income tax rate on both intellectual property and non-IP incomes, alongside investment tax allowance for capital-intensive services activities.
The scheme offers tax incentive for eligible companies in two categories – new investment and expansion. Companies under the new investment category may enjoy reduced tax rate of 0% on IP income, and 5% or 10% on non-IP income for 10 years. Meanwhile, companies under the expansion category may enjoy 15% reduced tax rate for five years.
“This MD tax incentive is a game-changer to cement Malaysia’s position as the digital hub of Asean,” said MDEC CEO Mahadhir Aziz. “It aligns with current economic needs and international best practices, highlighting our commitment to leading the digital revolution. By attracting global talent and investment in high-growth sectors, we aim to create a thriving digital ecosystem, generate high-value jobs, boost R&D activities, and integrate cutting-edge technologies locally.
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Source: theSundaily - 🏆 25. / 51 Read more »
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