Aerospace Industry will get a comprehensive tax incentive with the objective to make Malaysia a global centre for aerospace industry in Asia Pacific. The incentive package will be focusing on design, manufacturing and assembling, operator group, support and monitoring group.
What is included in the package?
- Income tax exemption for the design, manufacturing and assembling groups for a period of five to 15 years depending on the value of investments, added value, technology and other criteria.
- Investment tax allowance of 100 per cent on the qualifying capital expenditure for a period of 10 years subject to the value in terms of investments in fixed assets of more than RM150 million in five years.
- Income tax exemption of 100 per cent from statutory income for a period of up to 10 years for companies which offer MRO services and services related to the production of finished products.
- Double tax deductions on the expenses incurred by employers providing pilot conversion and pilot instructor training.
The incentive package will be effective for applications received by MIDA from January 1, 2010 till Dec 31, 2014 so that they can speed up the investments in aerospace industry especially foreign investments.
It is time to give a boost at the aerospace industry in Malaysia. This is definitely an exciting news for prospective investors.