MSC Malaysia Status Application in Malaysia
MSC Malaysia status is awarded to both local and foreign companies that develop or use multimedia technologies to produce or enhance their products and services, and for process development.
Our affiliated partner is an expert in the facilitation of MSC Malaysia Status application. We cover the entire process of the MSC Application right up to the final stages of the Approval Committee’s decision. Our scope of work under our clients supervision includes:
1) Evaluating the applicants’ business model (identifying MSC Malaysia Status qualifying activities of the company)
2) Assisting our clients in Preparing the Business Plan which includes:
- Highlighting the key business model proposed for the MSC Malaysia status Application
- Outlining the Product and Services rendered & Product Development Milestones
- Provide Market Survey Analysis and Research
- A Comprehensive Marketing Plan and Financial Projection
MSC Malaysia Status Eligibility Criteria
- Provider/Developer and/or heavy user of multimedia products and services
- Employ a substantial number of knowledge workers
- Strong value proposition specifying how operations will contribute to the development of MSC Malaysia
- Establish separate legal entity for MSC-qualifying activities
- Comply with environmental guidelines
MSC Malaysia Status Company – Qualifying Activities
- Software Development
- Hardware Design
- Global Business Services such as IT Outsourcing, Business Process Outsourcing, Knowledge Process Outsourcing
- Multimedia content creation, processing, packaging and aggregation and delivery activities
MSC Non-Qualifying Activities
a. Manufacturing – Activity referring to the production of goods in large quantities, usually undertaken in a factory environment
b. Trading – Activity of buying and selling especially off-the-shelf hardware and software.
Why should I get MSC Status?
You can enjoy the following benefits by getting MSC Status for your company.
Pioneer Status (PS) – Refers to 100% tax free on taxable statutory income (corporate tax) which is Governed PIA 1986 under Section 6 (1AB) & 14c. The incentive is for period up to ten years and for MSC Malaysia Status Approved activities only.
Investment Tax Allowance (ITA) – Refers to 100% deduction on capital qualifying expenditure which is Governed PIA 1986 under Section 27A. The capital qualifying expenditure includes hardware & software, purchase / renovation of office/building and greenery/landascaping expenses in Cyberjaya. The investment must be made within five years of Operations from the date of MSC Malaysia Status approval and must be offset against Taxable Income. Any excess ITA can be carried forward beyond 5 years.
Duty Free Importation – Refer to import duty and sales tax exemption applications from MSC Malaysia Status companies and this incentives is a part of the MSC Malaysia Bill of Guarantees. Terms and Conditions apply.
Foreign Knowledge Workers – Refer to application services of employment passes for Foreign Knowledge Workers for MSC Malaysia Status Companies.
Tax incentive (MSC Bill of Guarantee No.5),
a. Is only enjoyable for MSC qualifying activities subject to approval.
i. Company will need to establish a separate legal entity for the MSC qualified activities or,
ii. Undertake and maintain a separate accounting for MSC qualified activities.
b. If a company has been in operation for less than year, provision of Section 21C (2a) under Promotion of Investments Act (PIA) 1986 is not applicable and no tax threshold will be set.
c. If a company has been in operation for more than a year, provision of Section 21C (2a) under PIA 1986 is applicable and;
i. Tax threshold will be imposed if the company is making profit for the past years.
ii. Tax threshold will be set at zero if the company is not making profit for the past years.
What is the requirements?
MSC Malaysia Status companies (approved prior to 1 January 2015) is required to locate the implementation and operation of the MSC Qualifying Activities in a MSC Malaysia Cybercities/Cybercentres, within six (6) months from the Approval letter date. Any MSC Malaysia Status company approved after 1 January 2015 will have a choice of operating an office in an MSC Designated area, or operating from any commercial premises in Malaysia. Based on these options, the MSC Malaysia Status company will fall under these categories:
Tier 1 – Located in Designated Premises within MSC Malaysia Cybercities / Cybercentres
Tier 2 – Located in Commercial Premises within MSC Malaysia Cybercities / Cybercentres
MSC4Startups – Located outside of MSC Malaysia Cybercities / Cybercentres