Business

Greater KL has been ranked by the Economist Intelligence Unit as the second-most competitive global city in Southeast Asia, offering MNCs an ideal base for Management, Finance and Trading activities.
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Finance
Trade
  • Manage
    Regional Nerve Centre

    MNCs which establish their regional headquarters in Greater KL, MNCs can look forward to the following incentives:

    • 100% tax exemption of statutory income for 10 years on business income, interest income and royalties.
    • Customs duty exemption for raw materials, components or finished products.
    • Expatriates are taxed according to chargeable income attributable to the number of days spent in Malaysia.

    The eligibility for regional headquarters comprise:

    • Locally-incorporated entity.
    • Minimum operating expenditure of USD500,000 (RM1.5 million) annually.
    • Paid-up capital of USD165,000 (RM500,000).
    • Serve three related companies outside Malaysia.
    • Provide three MNCs and their expatriate employees qualifying services to related companies.

    Shared Services: Multimedia Super Corridor Companies

    ICT and ICT-facilitated businesses which develop or use multimedia technologies to produce and enhance their products and services are encouraged to apply for Multimedia Support Corridor (MSC) status, which allows:

    • 100% income tax exemption for 5 years.
    • No duties on import of multimedia equipment used directly in the operation of business.
    • No restriction on the employment of foreign knowledge workers.
    • Support from the Multimedia Development Corporation ("MDeC")'s one-stop client centre that will expedite visas and other licenses and permits.
    • Freedom of ownership.

    The following requirements apply to be eligible for MSC Status:

    • 70% export sales by end of Year 5 from the date of MSC Malaysia approval.
    • Minimum 50 employees by end of Year 5 from the date of MSC Malaysia approval.
    • Minimum 85% Knowledge Workers.
    • Establish a separate legal business entity for MSC qualifying businesses and activities.
    • Locate MSC operations within MSC designated locations.
  • Finance
    Regional Treasury Management Centre

    Malaysia’s financial stability, as evidenced by its resilience through the recent global financial crisis, in addition to its established financial system and global leadership in Islamic finance, make it an ideal base as a regional Treasury Management Centre.

    Coupled with the presence of a wide range of local and international banks as well as sound infrastructure, companies operating under the regional TMC banner can enjoy:

    • 70% tax exemption for 5 years (effective 7.5% tax rate) on Qualifying TMC income earned outside Malaysia.
    • Full exemption (for the portion less than or equal to 20% of all TMC Income) on Qualifying TMC income earned within Malaysia.
    • Withholding tax exemption on interest payments to overseas banks and related companies.
    • Stamp duty exemption on all loan and service agreements executed for conduct of qualifying TMC activities.
    • Expatriates are taxed according to chargeable income attributable to the number of days spent in Malaysia.

    The eligibility requirements for TMCs comprise:

    • Local incorporation.
    • Minimum total business spending of USD500,000 (RM1.5 million) per year.
    • Paid-up capital of USD165,000 (RM500,000).
    • Must provide any qualifying treasury services to at least three related companies outside of Malaysia.

    Activities that enable a TMC to qualify for incentives include:

    • Cash, Financing and Debt Management.
    • Investment Services.
    • Financial Risk Management.
  • Trade
    Global Offshore Commodities Trading

    From oil and gas to crude palm oil, Malaysia has established itself as a global player in the commodities market. In an effort to move higher up the commodities value chain, the country is firmly focused on attracting global commodities traders to its shores, spearheaded by the Global Incentives For Trading (GIFT) programme.

    Originally introduced for petroleum and petroleum-related products, carbon credits and minerals, the GIFT programme now includes other commodities such as agriculture, refined raw materials, base minerals and chemicals.

    Eligibility for the GIFT programme comprises:

    • Generate a minimum turnover of US$100 million annually.
    • Incur business spending of at least USD1 million (RM3 million) annually.
    • Employ at least three professional traders.
    • Use and engage local support services.

    The following is the list of incentives and benefits for the GIFT programme:

    • Flat corporate tax rate of 3% (except LNG).
    • 100% tax exemption for LNG trading companies for the first three years of operations, if they sign up for the GIFT programme before 31 December 2014. From 1 January 2015, these companies will revert to the 3% tax regime.
    • 100% exemption on director fees for non-Malaysians.
    • 50% exemption on gross employment income for non-Malaysians.
    • Tax exemption of stamp duties for Labuan business activities.
    • Tax exemption on dividends received by or from Labuan International Trading Commodity Company ("LITC").