The incentives available for Iskandar Malaysia include the Iskandar Malaysia Incentive Support Package (ISP) for Medini, targeted to Iskandar Malaysia’s six promoted sectors i.e. Education, Healthcare, Logistics, Creative, Tourism and Global Business Services which has been designed to boost investments in realizing Iskandar Malaysia’s vision to be a strong and sustainable metropolis of international standing.

Approved Developers

  • Full tax exemption on income derived from rental or sale of building, or part, parcel or unit thereof, located in Medini, commencing from the first year of statutory income, to Y/A 2025.*

Approved Development Managers

  • Income tax exemption for management, supervisory or marketing services until 2022.

IDR-Status Companies

  • Income tax exemption (10 years) for qualifying activities ; or an Investment Tax Allowance of 100% capex for five (5) years, 100% statutory income.
  • Tourism
  • Education
  • Creative
  • Global Business Service
  • Healthcare
  • Logistics
  1. Locally incorporated under the Companies Act 2016.
  2. The company has obtained approval from the Minister of Finance as an Approved Developer.
  3. Will need to be tax resident in Malaysia as defined in the Income Tax Act 1967. To qualify as tax residents, the control and management of the business or affairs of the companies must be exercised in Malaysia. This can be demonstrated by the holding of at least one board of directors’ meetings in Malaysia in a financial year.
  4. The applicant company must have acquired a right or rights over part or the whole of land (the said rights) in the approved node within Iskandar Malaysia (the land) to undertake development therein in accordance with the Master Plan as approved by the Relevant Authorities.
  5. The company must demonstrate clearly the main features of the main criteria used in either the Green Building Index (GBI) or GreenRE Certification in the master layout plan and building projects. A minimum score of 50 point and above.
  6. The company will be required to obtain an annual certification from the approved node project development company for Medini. This will entail the submission of various documents including a statutory declaration.  The annual certification is required to substantiate compliance with the Conditions of Approval and to enable these companies to enjoy income tax exemption pursuant to the Income Tax (Exemption) (No.19) Order 2007
  7. The company is encouraged to reflect innovative design or system on the layout plans and building that will add value to one or more of the promoted sectors/activities that are eligible in the development area.
  8. The applicant company will be required to submit two copies of the Development Concept and Layout Plan of the development project as well as provide details of the key aspects of this in development/project.
  9. Disposal or rental of the building, or part, parcel or unit thereof, that is applicable to commercial zones and / or retail use, inclusive supplementary spaces, such as parking facilities and other common public amenities.
  10. Before the disposal of the land is implemented, the company must demonstrate sufficient evidence that value-added activities have been implemented on the land to IRDA.
  11. Effective 14 Apr 2011, the applying company must have a minimum paid up capital of RM250,000.00 at the point of application and this must be reflected by the relevant SSM forms.

Approved Developer Submission Checklist.

ISC 1

  1. A company incorporated under the Companies Act 2016.
  2. Eligible applicants should be newly incorporated companies.
  3. The applicant company must not have applied for/obtained any other tax incentives in Malaysia.
  4. The company must be “desirous” in establishing or participating in a promoted activity and has not started production. This condition must be adhered to by the applicant.
  5. The company must be appointed by the Approved Developer (AD) that are approved for the same Incentive Support Package.
  6. The applicant company must incur adequate amount of operating expenditure annually in Malaysia to undertake the proposed developer services. This operating expenditure should include local services for insurance, legal, banking, ICT and transportation; if those services could be sourced from local/domestic service providers.
  7. Income arising from Intellectual Property (IP), will be excluded. Approved applicant will be required to exclude IP income (if any) and maintain a separate account and/or relevant documentation to track and trace the IP income.
  8. The applicant company must employ an adequate number of full-time employees annually in Medini to carry on the provision of management, supervisory or marketing services.

Approved Development Manager Submission Checklist

ISC 2

  1. Locally incorporated under the Companies Act 2016.
  2. The applicant company must have business premises in Medini, from which its qualifying business operations are conducted. [Must be carrying out their qualifying activity or activities in Medini.
  3. Will need to be tax resident in Malaysia as defined in the Income Tax Act 1967. To qualify as tax residents, the control and management of the business or affairs of the companies must be exercised in Malaysia.  This can be demonstrated by the holding of at least one board of directors’ meetings in Malaysia in a financial year.
  4. The applicant company must not have applied for/obtained any other tax incentives in Malaysia.
  5. The applicant company must be carrying out one or more of the qualifying activity or activities from business premises located in Medini.
  6. The applicant company must commence its qualifying activity within Medini on or before 31 December 2022.
  7. The applicant company must submit its incentive application to IRDA before the commencement of operations in Medini.
  8. Under the Promotion of Investments Act (PIA), 1986, the main criteria for a company to enjoy tax incentives is that the company must be “desirous” in establishing or participating in a promoted activity and has not started production. This condition must adhere to by the applicant.
  9. The applicant company must incur adequate amount of operating expenditure annually in Malaysia to undertake the proposed qualifying activity. This operating expenditure should include local services for insurance, legal, banking, ICT and transportation; if those services could be sourced from local/domestic service providers.
  10. Income arising from embedded Intellectual Property (IP) in the sale of product (if any), will be excluded. Approved applicant will be required to exclude IP income (if any) and maintain a separate account and/or relevant documentation to track and trace the IP income.
  11. The applicant company must employ an adequate number of full-time employees for its Medini operations to carry on the qualifying activity.

IDR Status Submission Checklist

ISC