The finance ministry, in collaboration with the Johor state government, has unveiled a tax incentive package aimed at attracting investments to the Johor-Singapore Special Economic Zone (JS-SEZ). The incentives, effective from 1 January 2025, aim to attract investments and stimulate economic development in the region.
Investors in the JS-SEZ will benefit from several incentives, including:
- Special corporate tax rate: Companies investing in qualifying sectors such as artificial intelligence, quantum computing, medical devices, aerospace manufacturing, and global services hubs will enjoy a corporate tax rate of 5% for up to 15 years.
- Flagship development focus: Tailored incentives will be available for businesses operating in key flagship areas within the JS-SEZ.
- Special tax rate for knowledge workers: Eligible knowledge workers employed in the JS-SEZ will benefit from a 15% income tax rate for 10 years.
In addition, entertainment duties within the JS-SEZ have been reduced, effective 1 January 2025. Further details regarding the tax incentives and flagship zones will be announced in due course, according to a joint statement.
Johor Menteri Besar Datuk Onn Hafiz Ghazi expressed confidence about the potential of the incentive package to position Johor prominently on the global investment map. “The federal and state governments have worked collaboratively to provide the JS-SEZ with a shot in the arm to drive investments. With the multitude of advantages that this state possesses, the JS-SEZ will solidify Johor’s position as a major trade and maritime hub in the region,” he said.
Finance Minister II Datuk Seri Amir Hamzah Azizan emphasised that the package underscores the government’s commitment to making Malaysia a premier investment destination. He stated that the collaboration between Malaysia and Singapore would not only attract high-quality investments but also generate higher-income employment opportunities.
To streamline investment processes, the government has also established the Invest Malaysia Facilitation Centre Johor, which will assist with applications and approvals.
The announcement follows the signing of a bilateral agreement between Malaysia and Singapore to establish the JS-SEZ. The economic zone encompasses the Iskandar development region, Forest City, Pengerang Integrated Petroleum Complex, and Desaru.
(Source: Free Malaysia Today)
The post Malaysia Unveils Tax Incentive Package To Boost Investments In JS-SEZ appeared first on RinggitPlus.
