Taxation Benefits for Specialised Industries

INTRODUCTION

To diversify the Malaysian economy and heighten the application of high-technology, numerous incentives are available. These incentives are attractive as they offer wide tax exemption to Small and Medium Scale Industries as well as companies in specialized industries and those that use or manufacture advanced technological systems, processes, and equipment.

COURSE OUTLINE

Categories of Strategic Activities and High-tech Products include:

1. Small/Medium Scale Enterprises

This sector covers a wide range of activities like manufacturing and related processing, iron and steel products, chemicals and pharmaceuticals, textiles, agriculture, apiculture, and electrical/electronic components.

SMEs are also eligible for Pioneer Status and Investment Tax Allowance.

2. MSC Malaysia

For businesses located in Cybercity/Cybercentre and even outside, tax benefits are granted to those related to information technology systems and innovation.

3. Aerospace Industry

Activities include design, construction, and maintenance of related products such as aircraft, communication and navigation systems, and MRO support groups

4. Automotive Industry

Manufacture of value-added parts and components like transmission, brake, and steering systems, and hybrid or electric vehicles

5. Manufacturing Sector

Promoted activities would comprise processing agricultural produce, manufacture of pharmaceuticals, petrochemicals, machinery, and electronic products.

6. Food Production

The Food Industry covers processing and canning of meat, and the manufacture of cereals, milk, biscuits, and noodles. Other principal activities include preparation of juices, fresh and canned fruits, and aquaculture products. Halal food processing is also entitled to special incentives.

This Webinar would also include the following:

1. Explanations on qualifying activities and the various incentives available.
2. Comparative study of Pioneer Status, Reinvestment Allowance and Investment Tax Allowance.
3. Incentives for Research and Development.
4. Examples and Computations with Case Studies.

PROFILE(s)

Vincent Josef began his career with the Inland Revenue Board in 1968 and over the next 35 years, he served in various Branches. Prior to his retirement, he was with the Operations Division of the Board Headquarters where he held the position of Assistant Director General. In addition, He has wide experience in lecturing at IRB events and Malaysian professional institutions including Chartered Tax Institute of Malaysia, Malaysian Institute of Accountants, CPA Australia, MAICSA and Commerce Clearing House (CCH) Malaysia. With his 50 years’ experience in the field of taxation, Mr. Josef also manages his own practice providing taxation consultancy services focusing on Tax Audits and Investigations, and MIDA Incentives applications. He has written a book “Tax Audit and Investigation Guide – Malaysia” published by CCH Malaysia and served as their Consultant Editor in respect of the Malaysian Master Tax Guide.