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Malaysia:Principal Hub Incentive
Volume 3 – Issue 1 – April 2015
2Take 5 - Malaysia: Principal Hub Incentive
Malaysia as a Principal Hub
Singapore
Jakarta
within
Shanghai
Hong Kong
Beijing
Tokyo
within
Kuala Lumpur
6h
4h
2h
“Malaysia is in a unique position to serve as a regional or global center for operations. Its value proposition is clear - a vibrant local market, geographical positioning in the center of Asia, powered by a skilled multi-lingual talent pool and supported by world-class infrastructure. It is also an attractive place to live and relocate to - Malaysia’s capital city ranks highly in Southeast Asia in terms of liveability, and has the stability of sound government.”
Yeo Eng Ping
3Take 5 - Malaysia: Principal Hub Incentive
Did you know?
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Source:• Media statement and guidelines issued by the Ministry of International Trade and
Industry, 6 April 2015
Applications to be received from 1 May 2015 to 30 April 2018
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4Take 5 - Malaysia: Principal Hub Incentive
Features of Principal Hub Incentive
“Our conversations with foreign MNCs and Malaysian clients tell us that Malaysia’s new Principal Hub incentive offers wider
e ibility to their business models and can be tailored to their business needs.
Overall, the competitive incentives package, coupled with comparatively lower operating costs, makes Malaysia a serious contender for a preferred principal location for MNCs who are looking to grow their business in the region.”
Salient features
Three-tiered rates
• • • • •
Type of income exempted
Flexible qualifying criteria
Multi-country control
Extendable duration
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Source:• Media statement and guidelines issued by the Ministry of International Trade and Industry, 6 April 2015
Amarjeet Singh
Take 5 - Malaysia: Principal Hub Incentive
Principal Hub Framework
Corporate tax incentive
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•
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increment
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increment increment
RM3 million increment increment increment
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Applicant
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• •
Applications to be received from 1 May 2015 to 30 April 2018
Source:• Media statement and guidelines issued by the Ministry of International Trade and Industry, 6 April 2015
6Take 5 - Malaysia: Principal Hub Incentive
What are qualifying services?
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allocated •
corporate development • • •
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Strategic Services
• • •
innovation • • • •
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•
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1 Business Services2 Shared Services3
“ he new Principal Hub incentive allows investors e ibility in how they conduct their global operations. The incentive recognizes new global operating models and the requirements of the businesses.
This incentive will ensure that Malaysia remains as an attractive business location for both current and prospective investors.”
Farah Rosley
Source:• Media statement and guidelines issued by the Ministry of International Trade and Industry, 6 April 2015
Take 5 - Malaysia: Principal Hub Incentive
Optimizing operating business models
“Today’s new business models are aspiring to be ‘high-value, high-impact’ central operating models which are beyond supply chain management procurement and provision, to include brand and IP management…
And in a dynamic ‘bipolar’ world, fast-transformed and equally fast-disrupted by digital technology, the stage is set for nimble corporates who are ready to adapt and optimize their operating model in e ible ta regimes.”
Matthew Andrew
Value
Service
Principal
Full Principal
(Central
Import
• • •
Plus
• •
Plus
•
Plus
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• •
Plus
• • • •
• development
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Value-Added Services Principal
ContactsYeo Eng PingMalaysia Tax Leader, ASEAN International Tax Services &Transaction Tax Leader
Amarjeet SinghPartner, Business Tax Services
Farah RosleyPartner, Business Tax Services
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