MASTIC

A company undertaking biotechnology activity and has been approved for the BioNexus Status by the Malaysian Bioeconomy Development Corporation Sdn. Bhd. (Bioeconomy Corporation) are eligible for the following incentives:

• Income tax exemption on non-IP income (100% income tax exemption on statutory income):

(a) For a period of ten (10) consecutive years of assessment commencing from the first (1st) year of assessment the company derives its statutory income from the new business; 

(b) For a period of five (5) consecutive years of assessment commencing from the first (1st) year of assessment the company derives its statutory income upon completion of its expansion project. 
The tax exemption is on the statutory income from non-IP of the existing business and expansion project. 

OR
• Investment Tax Allowance (ITA) of 100% on qualifying capital expenditure (QCE) incurred within a period of five (5) years from the date the first (1st) QCE is incurred. This allowance can be off-set against a maximum of 70% of statutory income from a new business or expansion project.

A BioNexus Status company is entitled to a Concessionary tax rate of 20% on statutory income from non-IP of approved QA, for a period of ten (10) consecutive years of assessment upon the expiry of the income tax exemption. 

Other incentives that a BioNexus Status company may be entitled to are:
• Tax deduction equivalent to the total investment made at the initiation of commercialisation stage by a company or an individual (that carries out the business), for financing the activity in a BioNexus Status company. 

• Industrial Building Allowance (IBA) on qualifying expenditure used solely for the purpose of a new business or expansion project for a period of ten (10) years of assessment. 

• Exemption of import duty and sales tax on imported raw materials/components and machinery and equipment. 
• Double deduction on expenditure incurred for R&D. 
• Double deduction on expenditure incurred for the promotion of exports.