Small-scale manufacturing companies
Small-scale manufacturing companies incorporated in Malaysia with shareholders’ funds not exceeding RM 500,000 and having at least 60% Malaysian equity are eligible for the following incentives:
1) Newly established companies are granted tax exemption of 100% for a period of five years. In addition, the accumulated loss from the business operation in the first year is eligible for tax deduction in the following year.
2) The investment expenditures are granted 60% tax deductions and the full deductions can be exercised for five years provided that the factories are located in a special area as set forth by the government.
A new private company formed to take over the existing company is eligible for getting tax incentives provided that the mentioned company complies with any of the following criteria:
1) The value added must be at least 15%.
2) The project contributes towards the socio-economic development of the rural population.