top of page
  • CCS

Extension of Tax Incentive for the Shipbuilding and Ship Repairing Industry

Updated: Nov 9, 2022

To Download Budget 2023 Speech and some other related publications - https://t.me/YourAuditor/3276

Background to the Shipbuilding and Ship Repairing Industry

Malaysia’s strategic location on a crucial sea lane has made the country well-positioned to access global trade routes.


The Greek geographer Ptolemy described us as the “Golden Khersonene,” meaning Golden Peninsula, in his atlas Geographica in AD 150.


In modern times, the Malaysian shipbuilding and ship repair (SBSR) sub-sector encompass companies that manufacture seagoing vessels and marine equipment, as well as providers of related services, including ship repair, design, upgrade/ conversion of vessels and maintenance, repair and overhaul (MRO).


Introduced in 2016, the SBSR industry incentives are available for both new and existing companies until the end of 2022.


Current Position

Companies undertaking SBSR activities in Malaysia are eligible for tax incentives as follows:

New Company

  1. Pioneer Status with an income tax exemption of 70% of statutory income for 5 years; or

  2. An Investment Tax Allowance of 60% on Qualifying Capital Expenditure incurred within 5 years and can be set off against70% of the statutory income for each assessment year.

Existing Company

Investment Tax Allowance of 60% on qualifying capital expenditure incurred within 5 years and can be set off against 70% of the statutory income for each assessment year.


The tax incentive is for applications received by the Malaysian Investment Development Authority (MIDA)from 1 January 2020 until 31 December 2022.

In addition, SBSR companies with bona fide status are also eligible for import duty and sales tax exemption under Item 53, Customs Duties (Exemption) Order 2017 and Item 44, Schedule A, Sales Tax (Persons Exempted from Payment of Tax) Order 2018.



These exemptions are given for bona fide status applications received by the Ministry of Finance until 31 December 2022.

Proposal

To position Malaysia as a regional hub for SBSR, it is proposed that existing tax incentives and bona fide status be extended for 5 years.

Effective Date
  • For SBSR applications received by MIDA from 1 January 2023 until 31 December 2027.

  • For bona fide status applications received by the Ministry of Finance from 1 January 2023 until 31 December 2027.


Our website's articles, templates, and material are solely for reference. Although we make every effort to keep the information up to date and accurate, we make no representations or warranties of any kind, either express or implied, regarding the website or the information, articles, templates, or related graphics that are contained on the website in terms of its completeness, accuracy, reliability, suitability, or availability. Therefore, any reliance on such information is strictly at your own risk.

Keep in touch with us so that you can receive timely updates |

要获得即时更新,请与我们保持联系

1. Website ✍️ https://www.ccs-co.com/ 2. Telegram ✍️ http://bit.ly/YourAuditor 3. Facebook ✍

4. Blog ✍ https://lnkd.in/e-Pu8_G 5. Google ✍ https://lnkd.in/ehZE6mxy


6. LinkedIn ✍ https://www.linkedin.com/company/74734209/admin/


159 views0 comments

Recent Posts

See All