Tax incentive package for investors in Sabah

Companies keen to invest in the Sabah Development Corridor (SDC) can now look forward to a package of tax incentives approved by the Ministry of Finance for the economic corridor.

Sabah Chief Minister Datuk Seri Musa Haji Aman said the incentive package would enable the Sabah Economic Development and Investment Authority (SEDIA) to promote the state as an ideal location for doing business, drawing more foreign investors as well as investors from other states in Malaysia to Sabah.

Datuk Seri Musa, who is also SEDIA Chairman, was speaking at the presentation of a RM15 million dividend by Warisan Harta Sdn Bhd to the Sabah State Government in Kota Kinabalu, yesterday. Warisan Harta is the state-owned investment unit.

The Chief Minister said the investment tax incentives are for targeted sectors including the tourism, manufacturing and agriculture sectors to be sited in the Strategic Development Areas- the Kinabalu Gold Coast Enclave, Integrated Livestock Valley, Sabah Agro-Industrial Precinct, Sandakan Education Hub, Sabah Oil and Gas Industrial Park, Lahad Datu Palm Oil Industrial Cluster and the Marine Integrated Cluster.

The tax incentives include full tax exemption on statutory income for up to ten years or Investment Tax Allowance (ITA) of 100 % on qualifying capital expenditure for five years, and full exemption on import duty and sales tax exemption, based on existing policy.

The incentives are for applications received by SEDIA until 31 December 2020 while the evaluation and approval of the tax incentive is under the purview of the National Committee on Investments (NCI).

Source: New Sunday Times and Borneo Post