Malaysia Moving Forward – Abolishment of Real Property Gains Tax & Special Incentive Area –Iskandar Development Region

At the Invest Malaysia Conference 2007 held on 22 March 2007, our Prime Minister during his speech presented at the Invest Malaysia Conference 2007 on 22 March 2007:

• The Government has decided not to impose Real Property Gains Tax (RPGT) throughout the country commencing 1 April 2007.
• A first incentives package was announced for the Iskandar Development Region (IDR), starting with certain zones within the IDR and for six targeted sectors, namely creative industries, educational services,financial advisory and consulting, healthcare, logistic and tourism related services.

For the proposed incentives for the IDR which are as follows :-

• corporate income tax exemption for activities within these zones and
  outside Malaysia for 10 years, upon commencement of operations; and
• withholding tax exemption on certain payments for 10 years upon
  commencement of operations;

provided such operations commenced before the end of 2015.

Furthermore, qualifying companies will enjoy:

• Exemption from Foreign Investment Committee (FIC) rules;
• Freedom to source capital globally; and
• Unrestricted employment of foreign employees within the approved
  zones.

Further details of the incentive and support package will be announced
by the Prime Minister in due course.