Malaysia Investment Development Authority Issues Guidelines on Reinvestment Incentive Under New Industrial Master Plan 2030

The Malaysian Investment Development Authority July 30 issued guidelines for the reinvestment incentive introduced in the 2024 Budget under the New Industrial Master Plan (NIMP) 2030. The new two-tiered incentive provides options to existing manufacturers residing in Malaysia, including those that have exhausted the Reinvestment Allowance (RA) under Schedule 7A of the Income Tax Act 1967. The guidelines explain: 1) that the Tier 1 incentive offers a five-year, 100 percent Investment Tax Allowance on qualifying capital expenditures (excluding land costs) to offset statutory income up to 100 percent in each assessment year until exhausted; 2) that the Tier 2 incentive ...