Seeds R&D Centre in Perlis
To accelerate the Northern Corridor agriculture activities, a world class Seeds R&D centre will be established in Perlis. As a privately-run institute, the Seeds R&D Centre will be able to partner with renowned agricultural and biotechnological research centres worldwide, and employ leading local and foreign scientist.
The followings are the tax incentives available for the Seeds R&D Centre:-
Tax Incentives for the Operator of Seeds R&D Centre
- 100% Income Tax Exemption on statutory income for a period of 10 years, starting from the first year of profitability, or
Investment Tax Allowance of 100% on qualifying capital expenditure for a period of 5 years; - A concessionary tax rate of 20% for a period of 10 years after the period of the full income tax exemption ends;
- Import duty and sales tax exemption on raw materials, components and machinery.
Application should be submitted to NCIA
Additional Incentives for the Operator of Seeds R&D Centre
- Tax exemption on dividends paid to shareholders from income that is tax exempt;
- Double deduction on export promotion expenses;
- Industrial building allowance on buildings used for Seeds R&D for a period of 10 years;
- Stamp duty exemptions on land acquisitions and mortgage transactions;
- Tax deduction on costs incurred to obtain proprietary rights for a period of 5 years, provided that the Seeds R&D Centre is at least 51% Malaysian owned.
Claims should be submitted to IRB
Tax Incentives for Investors who Invest in the Seeds R&D Centre
- Holding companies investing in a subsidiary (approved company) are eligible for tax deductions equivalent to the amount invested in the subsidiary, as long as the subsidiary is at least 70% owned.
- A company or an individual investing in the approved company is eligible for a tax deduction equivalent to the total investment made in seed capital and early stage financing.
Claims should be submitted to IRB
Tax Incentives for Companies that Utilise Seeds R&D Centre Services
Double deduction on expenditure incurred for utilising research and development services from Seeds R&D Centre for non-related companies.
Claims should be submitted to IRB