Special Investment Tax Allowance for E&E Industry

Special Investment Tax Allowance for E&E Industry

Special Investment Tax Allowance for E&E Industry

Special Investment Tax Allowance for E&E Industry

The Special Investment Tax Allowance for the Electrical & Electronic (E&E) Sector incentive was announced in the National Budget 2020.

The Income Tax (Exemption) (No.10) Order 2021 (“Exemption Order”) has been gazetted and is effective from 1 January 2020.

Key salient features of Special Investment Tax Allowance for E&E Industry

  • Investment Tax Allowance of 50% on qualifying capital expenditure to be offset against 50% of Statutory Income.

  • The exemption period is valid for a period of 5 years starting from the date of the approval letter.

  • This Special Investment Tax Allowance is to encourage companies in the E&E sector that have exhausted the Reinvestment Allowance in Malaysia to further reinvest in Malaysia.

  • Manufacturing company incorporated under the Companies Act, 1965/2016, and residents in Malaysia.

  • Possess valid Business License from the relevant Local Authority.

  • Possess Manufacturing License (ML) from MITI or Confirmation Letter of Exempted from Manufacturing License from MIDA.

  • The applicant company is engaged in manufacturing activities in the

  • E&E sector.

  • The minimum investment in the related proposed projects shall be at least RM1.5 million in capital expenditure within a period of five (5) years.

  • The company to incur the minimum yearly operational expenses (as proposed by the company);

  • The company to hire a minimum number of Malaysian full-time workers (as proposed by company).

  • The applicant company shall at least satisfy one (1) of these

  • following conditions

    1. Vendor Development Program or

    2. Human Capital Development Program

Source :

MIDA guideline

https://www.mida.gov.my/wp-content/uploads/2021/03/GD_ITA-EE16032021.pdf

Visit Us

  • Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

  • Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru

KTP (Audit, Tax, Advisory)

An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients

THK (Secretarial, Account, Payroll, Advisory)

A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsource booking, accounting and payroll services to clients

KTP Lifestyle

An internal community for our colleagues on work and leisure.

KTP Career

An external job community on vacancy in Johor Bahru for interns, graduates & experienced candidates.

#Ktp #Thks

 
 
taxKtp Ktpspecial investment tax allowance for E&E, special ITA