MALAYSIA: Tax Incentives Rules for Pharmaceutical Manufacturers Gazetted
11 March 2022
On 17 February 2022, Malaysia published the Income Tax (Incentive for Manufacturers of Pharmaceutical Products Scheme) Rules 2022, providing preferential corporate income tax rates to pharmaceutical manufacturers. Under the Rules, a qualifying company carrying out specified activities will be taxed at 0-10% for the first 10 years, and 10% for the following 10 years. Applications for approval can be made through the Malaysia Investment Development Authority (MIDA), until 31 December 2022.
To be eligible the company must be resident in Malaysia and incorporated under the Companies Act 2016. It must have a Ministry of International Trade and Industry manufacturing licence, or a letter of exemption from the MIDA. It must manufacture pharmaceutical products in Malaysia, including formulation. However, fill and finish activities, or completing packaging for distribution are excluded. Firms approved will be eligible for the incentive if they meet certain capital and human resource requirements.
- Medical Supplies & Medicine
- Southeast Asia