Real case study on tax saving of 70% of income via MIDA Tax Incentive

01eKTP 4

We have developed this publication to assist you in understanding the process and timeline involved for the above application. This publication provides illustration of some key processes that we hope will be a useful guide. 
 

02Tax Incentive Application (Pioneer Status / Investment Tax Allowance)

Tax incentives are available to companies engaged in promoted activities or producing promoted products. The Malaysian Investment Development Authority (MIDA) has identified a long list of activities and manufactured products as “promoted activities” and “promoted products”.
 

03Case Information

04
Customer Review

GMM Sdn Bhd is engaged in hotel business.
 

05Process

• Understand the nature of business and checking the activity is included in promoted activities listing of MIDA
• Confirm eligibility to the tax incentive with MIDA.
• Prepare engagement letter for application of tax incentive.
• Assess the potential tax saving from available incentives (Pioneer Status / Investment Tax Allowance).
• Arrange a meeting with client with client to further discuss on the documents needed and information require.
• Fill in the application form from information gathered and attached the necessary supporting documents.
• Send the draft application form to client for review before submission.
• After review, the application form with supporting document would be sent to MIDA.
• Communicating with management in dealing with the MIDA for any further query on the application after submission.
  

06Time Frame

6 months (From March 2015 to August 2015)
 

07Result

Application is approved by MIDA subject to fulfillment of condition stated. Upon fulfillment of condition, notification will be sent to MIDA for determination on effective date of tax incentive in a prescribed form.