Supported by pro-business government policies, Sarawak is a prime investment destination with its competitive tax rates, energy costs & infrastructure.
National tax incentives, both direct and indirect, cover new investments in the manufacturing, agriculture, tourism and approved services sectors as well as Research and Development (R&D), training and environmental protection activities.
Pioneer Status (PS)
Income tax exemption of 70% or 100% for 5 to 10 years
Investment Tax Allowance (ITA)
60% or 100% of qualifying capital expenditure offset against 100% or 70% statutory income
Reinvestment Allowance (RA)
60% of qualifying capital expenditure for 15 consecutive years, offset against 100% or 70% statutory income
Global Services Hub
Incentives for trading / services companies
Tiered income tax (5% or 10%) up to 10 years
Tax Exemption
100% tax exemption for high-tech industries for up to 5 years
Malaysia Digital (MD) Status
Incentives for Malaysia Digital activities
- Income tax exemption or ITA
- Import duty/sales tax exemption
Green Incentives
Green income tax exemption (GITE) services – 70% income tax exemption for 3 years
Green ITA (GITA) project/assets – 100% ITA for up to 10 years, offset against 100% or 70% income
GITE Leasing – 70% income tax exemption for 5/10 years
Strong Trade, Investment and Economic Cooperation through ASEAN FTAs
Sarawak, being part of Malaysia, benefits from Free Trade Agreements (FTAs) that promote trade and boost economic cooperation among ASEAN member states and key trading partners around the world.