Updated on 15 July 2023- Dialogue between MOF, LHDNM, and CTIM [21/6/2023]
To Download Revised Budget 2023 Speech and some other related publications – https://www.ccs-co.com/post/budget-2023-malaysia-madani
Current Position
“Bio Nexus Status Company” means a company incorporated under the Companies Act 2016 [Act 777] engaged in the life sciences business.
Tax incentives for BioNexus status companies are given as follows:
- a company undertaking biotechnology activity and approved with BioNexus status:
- Income Tax Exemption of 70% on statutory income commencing from the first statutory income for a period of 10 or 5 years, subject to new or existing business (expansion project);
- concessionary tax rate of 20% on income from qualifying activities for 10 years upon the expiry of the tax exemption period;
- Double Tax Deduction on research & development expenditure;
- Industrial Building Allowance on building for biotechnology research activities; and
- Import Duty Exemption on raw materials / components and machinery / equipment.
- a company that undertakes investment in a BioNexus status subsidiary company engaging in a new project is given a tax deduction equivalent to the amount of investment made in the basis year the investment is made.
The tax incentive is for applications received by the Malaysian Bioeconomy Development Corporation from 1 January 2021 until 31 December 2022.
Proposal
To encourage more industry players, it is proposed tax incentives be reviewed as follows:
- income tax exemption on statutory income be increased from 70% to 100%; and
- the application period for tax incentives is extended for 2 years.
Effective Date
For applications received by the Malaysian Bioeconomy Development Corporation from 1 January 2023 until 31 December 2024.
Updated on 15 July 2023- Dialogue between MOF, LHDNM, and CTIM [21/6/2023]
BioNexus status companies also get an income tax exemption which is equivalent to the allowance based on 100% of qualifying capital expenditure (“QCE”), i.e. Investment Tax Allowance (“ITA”).
CTIM sought to confirm that the proposed two years application period extension applies to all tax incentives for BioNexus status companies, including the ITA and is not just restricted to the items listed in Appendix 19.
MOF’s Feedback:
Extending the 2-year application period applies to all tax incentives for BioNexus status companies, including the Investment Tax Allowance.
Disclaimer:
The articles, templates, and other materials on our website are provided only for your reference.
While we strive to ensure that the information presented is current and accurate, we cannot guarantee the completeness, reliability, suitability, or availability of the website or its content, including any related graphics. Consequently, any reliance on this information is entirely at your own risk.
If you intend to use the content of our videos and publications as a reference, we recommend that you take the following steps:
- Verify that the information provided is current, accurate, and complete.
- Seek additional professional opinions, as the scope and extent of each issue, may be unique.
免责声明：
我们网站上的文章、模板和其他材料只供参考。
虽然我们努力确保所提供的信息是最新和准确的，但我们不能保证网站或其内容，包括任何相关图形的完整性、可靠性、适用性或可用性。因此，您需要承担使用这些信息所带来的风险。
如果你打算使用我们的视频和出版物的内容作为参考，我们建议你采取以下步骤：
- 核实所提供的信息是最新的、准确的和完整的。
- 寻求额外的专业意见，因为每个问题的范围和程度，可能是独特的。
Keep in touch with us so that you can receive timely updates
请与我们保持联系，以获得即时更新。
1. Website ✍️ https://www.ccs-co.com/ 2. Telegram ✍️ http://bit.ly/YourAuditor 3. Facebook ✍
- https://www.facebook.com/YourHRAdvisory/?ref=pages_you_manage
- https://www.facebook.com/YourAuditor/?ref=pages_you_manage
4. Blog ✍ https://lnkd.in/e-Pu8_G 5. Google ✍ https://lnkd.in/ehZE6mxy
6. LinkedIn ✍ https://www.linkedin.com/company/74734209/admin/
