Incentives - Cyberview

Cyberview

Cyberjaya’s strong partnerships and collaborations with government entities place the city in a unique position in providing insights, supports and valuable industry feedback.

Investment Incentives for Cyberjaya

Cyberjaya’s strong partnerships and collaborations with government entities place us in a unique position in providing insights, supports and valuable industry feedback. Access to financial facilities, a competitive research and development (R&D) environment as well as exemptions from regulatory restrictions, are among many attractive stimuli provided here. This is an ideal place for companies to build and expand their business with ease – making Cyberjaya the top choice for tech investors.

Tax
Incentives

Funding
Incentives

Expatriate
Related Incentives

Principle
Hub

Malaysia Digital Status
Incentives

Cyberview
Incentives

Tax Incentives

Tax Exemption

  • Pioneer Status (PS) – Corporate Income Tax exemption of 70% or 100% of statutory income for 5-10 years.
  • Investment Tax Allowance (ITA) – Allowance of 60% – 100% on qualifying capital expenditure (factory, plant, machinery or other equipment used for the approved project) incurred within 5 to 10 years from the date of first qualifying capital expenditure is incurred.
Related and unrelated companies which make payments to the R&D Status Company for the use of their services are eligible to claim DOUBLE DEDUCTION on approved R&D expenditure
Industry Pioneer Status (PS) Investment Tax Allowance (ITA)
Contract R&D company
  1. – a company that provides R&D services in Malaysia to a company other than its related company
100% tax exemption of statutory income for 5 years 100% on the qualifying capital expenditure incurred within 10 years. The allowance is offset against 70% of statutory income for each assessment year.
R&D Company
  1. – a company which provides R&D services in Malaysia to its related companies or to any other company
100% on the qualifying capital expenditure incurred within 10 years. The allowance is offset against 70% of statutory income for each assessment year.
Industry Pioneer Status (PS) Investment Tax Allowance (ITA)
70% tax exemption of statutory income for 3- 10  years 100% on the qualifying capital expenditure incurred within 3 years. The allowance is offset against 70% of statutory income for each assessment year.
Industry Pioneer Status (PS) Investment Tax Allowance (ITA)
70% tax exemption of statutory income for 5 years 60% allowance of qualifying capital expenditure incurred within 5 years
Industry Pioneer Status (PS) Investment Tax Allowance (ITA)
projects in the transportation, communications and utilities sub-sector approved by the Minister of Finance (MOF) Income tax exemption under Section 127 of the Income Tax Act 1967 or Investment Allowance (IA) under Schedule 7B of the Income Tax Act, 1967. Applications for this incentive should be submitted to MOF
Automation Capital Allowance of 200% on the first RM2 million expenditures incurred for the year of assessment 2020 until the year of assessment 2023. Incurred refers to machinery or equipment purchased and used directly for the purpose of the business in the approved Year of Assessment (YA)

Special income tax treatment at a flat rate of 15% for 5 consecutive years to non-resident individuals holding the key positions for strategic new investment by companies relocating their operations to Malaysia

Concessionary tax rate of 10% on statutory income for 5 years and renewable for another 5 years

Funding Incentives

capital incentives 01

Loan & Financing

Financing assistance to the services sector to expand their services into higher value-added activities and improve productivity and efficiency Source: Cradle & MAVCAP

Expatriate Related Incentives

Representative Office/Regional Office (RE/RO)

capital incentives 05
  1. RE/RO will be given expatriate post and the number allowed depends on the function and activities of the RE/RO. 
  2. Minimum establishment of 2 years (depends on the merit of the case).
  3. Expatriate will only be considered for managerial and technical posts. The total number of employees should reflect the ideal composition of 2 expatriates to 1 Malaysian.
Source: https://investmalaysia.mida.gov.my/incentives/
capital incentives 02

Expatriate Related Services

Expatriate post based on requirements of business plan subject to current policy of expats

Source: https://investmalaysia.mida.gov.my/incentives/

Principal Hub

Tax Rate Incentive Package

The Principal Hub scheme offers an additional advantage to companies seeking to leverage on Malaysia as their centralised operating base to conduct its regional and global business operations.​

  1. New Company- 2-tiered tax rate incentive package based on the level of commitment.
  2. Existing company- Tax rate of 10% on statutory income for 5 years.

Source:
https://investmalaysia.mida.gov.my/incentives/
https://mdec.my/expats/
https://esd.imi.gov.my/portal/

Malaysia Digital Status Incentives

Malaysia Digital Status

Malaysia Digital status is a recognition by the Government of Malaysia through the Malaysia Digital Economy Corporation (MDEC), for ICT and ICT-facilitated businesses that develop or use multimedia technologies to produce and enhance their products and services.

capital incentives 03
  1. Malaysia Digital status recognition by MDEC
  2. Pioneer Status privilege and 100% ITA on new investments made in Malaysia Digital Cybercities
  3. Freedom of ownership by exempting Malaysia Digital status companies from local ownership requirements
  4. Unrestricted employment of foreign knowledge workers

Cyberview Incentives

capital incentives 04

Cyberview Incentive

  • Soft landing zone package – Key offerings include rental free co-working spaces, programmes & Cyberjaya Investment & Services Centre facilitation and services
  • Affordable rental of commercial office spaces from as low as RM1.80/sqft per month
  • Free use of shared facilities 
  • Business setup facilitation via Cyberjaya Investment & Services Centre 
  • Access to Cyberview Living Lab programme

Cyberjaya Innovation Fund of the Future (CIFF) Fund

Cyberjaya Innovation Fund of The Future (“CIFF”)- Investment Promotion Incentive, is an incentive provided by Cyberview with the aim to attract and incentivise more Research & Development, Commercialisation and ICT companies to setup and invest in Cyberjaya

Incentives offered are as below
a) rental subsidy;
b) employment grants; and
c) Incentives for special projects.

Application to the CIFF IPI must align with Cyberview Sdn Bhd’s mission to strengthen Cyberjaya as a Global Technology Hub .

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