Tax Incentives for Foreign Investment in Malaysia
Call the Attorney at +60 3 79875001 
Free Consultation
Malaysia welcomes foreign investments, particularly in the manufacturing sector, and does not discriminate against investors from any country.
To encourage foreign investments, Malaysia offers many incentives and other advantages to foreign investors and has entered into double taxation agreements with more than 40 countries. Malaysia has investment guarantee agreements with most major industrialized countries. These agreements generally guarantee that, except for public purposes, Malaysia will not expropriate or nationalize property without prompt and adequate compensation.
Tax incentives are provided under the Promotion of Investment Act 1986 and the Income Tax Act 1967. The main incentives are as follows:
• Pioneer status
• Investment tax allowance
• Reinvestment allowance
• Industrial adjustment allowance
• Double deduction of expenses (given in respect of certain expenses if the conditions imposed are satisfied)
• Approved agricultural projects incentives
• Research and development incentives
• Industrial building allowance
• In bound tour operators incentives
• Incentive for approved overseas investments
• Incentives for overseas construction projects
• Operational Headquarters Incentives
• Labuan International Offshore Finance Centre
ABOUT THE AUTHOR: Leon Lu
Leon has over 10 years of legal practice in areas of corporate advisory, investment schemes, private equity, intellectual property, IT and software, property, probate, and property law.
Leon has advised a number of private equity arrangements and collective investment schemes. Recent highlights include a private equity exercise which raised RM988 million for a oil palm plantation project.
On the area of corporate advisory, he was credited for designed and customize Employee Stock Ownership Plan for several multinational corporations. He also offers corporate retainer for corporate exercise and expansion, including establishing franchising and direct- selling on regional scale.
Leon is an experienced legal practitioner with the capabilities, temperament and judgment to provide astute solution for the clients. The logical creativity of Leon makes his work both hands-on and spot on.
Copyright L Y Lu & Co
More information about L Y Lu & Co
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Tax incentives are provided under the Promotion of Investment Act 1986 and the Income Tax Act 1967. The main incentives are as follows:
• Pioneer status
• Investment tax allowance
• Reinvestment allowance
• Industrial adjustment allowance
• Double deduction of expenses (given in respect of certain expenses if the conditions imposed are satisfied)
• Approved agricultural projects incentives
• Research and development incentives
• Industrial building allowance
• In bound tour operators incentives
• Incentive for approved overseas investments
• Incentives for overseas construction projects
• Operational Headquarters Incentives
• Labuan International Offshore Finance Centre
ABOUT THE AUTHOR: Leon Lu
Leon has over 10 years of legal practice in areas of corporate advisory, investment schemes, private equity, intellectual property, IT and software, property, probate, and property law.
Leon has advised a number of private equity arrangements and collective investment schemes. Recent highlights include a private equity exercise which raised RM988 million for a oil palm plantation project.
On the area of corporate advisory, he was credited for designed and customize Employee Stock Ownership Plan for several multinational corporations. He also offers corporate retainer for corporate exercise and expansion, including establishing franchising and direct- selling on regional scale.
Leon is an experienced legal practitioner with the capabilities, temperament and judgment to provide astute solution for the clients. The logical creativity of Leon makes his work both hands-on and spot on.
Copyright L Y Lu & Co
More information about L Y Lu & Co
View all articles published by L Y Lu & Co
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
