Malaysia Proposes Tax Incentives in Covid-19 Stimulus Package

Malaysia announced a series of tax incentives as part of a post-Covid-19 stimulus package, including a 10-year 0% tax rate on certain new investments from foreign manufacturers.

The package includes a 15% tax rate for new investments in the manufacturing sector for 15 years for companies with fixed assets exceeding RM500 million ($117 million) and above. Malaysia’s usual headline corporate tax rate for non-resident companies is 24%.

“This incentive is provided if the company transfers the location and commences operations within one year from the date of approval and the investment amount involved must be ...