Malaysia has extended the timeline for applicants seeking income tax incentives for qualifying activities in the East Coast Economic Region to December 31, 2022. The ECER is one of three economic corridors in with the aim to accelerate economic growth in the country. The incentives include up to 100 percent income tax exemption for a wide range of qualifying activities from planting crops to the purchase of machinery for manufacturing to the construction or purchase of a factory or warehouse.
The ECER is one of three economic corridors established in Peninsular Malaysia to accelerate economic growth in the region. The ECER Development Council is confident of attracting 14 billion ringgit (US$3.1 billion) in committed investments and 7 billion ringgit (US$1. 5 billion) in realized investments for 2022.
The income tax incentives depending on the type of activities (qualifying activity), qualifying capital expenditure, and whether the activities are undertaken by a qualifying person.
A qualifying person includes “a National or State fisherman’s association” and “qualifying activity” includes “inland fishing or deep-sea fishing”.