The Income Tax (Exemption) (No. 13) Order 2005 [P.U.(A) 102/2005] which exempts a non-resident company from payment of income tax on income received from an ‘approved MSC status company’ for –
- payment for technical advice or technical services;
- licensing fees in relation to technology development; and
- interest on loans for technology development,
will be revoked from 1 January 2020 pursuant to the Income Tax (Exemption) (No. 13) (Revocation) Order 2019 [P.U.(A) 363/19].
Under the 2005 Exemption Order, an approved MSC status company’ means a ‘company which has been awarded MSC status by the Government of Malaysia, and engaged in the activities of regional IT solutions hub, regional internet exchange, regional data centre, regional internet data centre and regional call centre, and located in the area of Cyberjaya, Technology Park Malaysia-Phase I, University Putra Malaysia-Malaysia Technology Development Corporation Incubator I and the Petronas Twin Towers.’