INGENIEUR
3-tier Incentive
Tier 3
Blocks
5
High Value job by end of year 3 with
minimum monthly salary of RM5,000.00
15
High Value Jobs
Jobs that require higher and more
diverse set of managerial/ technical/
professional skills such as management,
analytics, communication, problemsolving, and proficiency in information
technology
Tier 2
+5
5
Jobs:
base
commitment
+20%
30
Tier 1
+5
Jobs:
base
commitment
+20%
5
50
+5
Jobs: base
commitment
+20%
At least 50% must be Malaysians by end
of year 3
Including key positions
- Minimum monthly salary of
RM25,000.00
3
Annual Business Spending
RM3M
Qualifying Services
Strategic + 2
Regional P&L + 2
Regional P&L + 2
Minimum Serving / Business Control of
no. of countries
3
4
5
Use of local Ancillary Services
Local Financial Institution Services (including finance and treasury),
logistics, legal and arbitration services, finance and treasury services)
Trading of Goods Annual Sales Turnover
(Additional requirement for goods-based
applicant company)
RM300 Million
4
Buss.
Spending:
Base
Commitment
+30%
6. MECHANISM
6.1 Incentives to be provided under section
127(3) (b) the Income Tax Act, 1967
and approved through the National
Committee on Investment (NCI).
6.2 Commitments on annual business
spending and high value jobs creation
will be given flexibilities to comply by
end of Year 3 of first block under each
tier. Failing to do so claw back on tax will
be taken from Year 1. This relaxation
is not applicable for existing company
who already enjoyed IPC/RDC/OHQ
incentives.
6.3 Company must submit yearly report to
MIDA for evaluation of performance.
Failing to do so, the incentive will be
withdrawn.
6.4 For existing companies that have
completed IPC, OHQ or RDC incentive
can be considered the Principal Hub
incentive by complying the criteria of Tier
1 for a maximum incentive period of five
6
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VOL 55 JUNE 2013
5
RM5M
Buss.
Spending:
Base
Commitment
+30%
RM10M
Buss.
Spending:
Base
Commitment
+30%
years with corporate tax rate of 10%.
Consideration is subject to the following
commitment under Tier 1.
• 20% incremental commitment of the
existing employment; and
• 30% incremental commitment of the
existing business spending.
7. EFFECTIVE DATE OF APPLICATION
7.1 New applications received by Malaysian
Investment Development Authority
(MIDA) from May 1, 2015 until April 30,
2018 is eligible to be considered for this
incentive.
7.2 Application for the extension of the
incentive period must be submitted to
MIDA six months before the expiry of the
initial incentive period.
7.3 The extended incentive period shall
begin from the date following the end of
the initial incentive period and continue
for a period of five years.