MSC Status Office
MSC Status Office
MSC Malaysia status is a recognition by the Government of Malaysia through the Multimedia Development Corporation (MDeC), for ICT and ICT-facilitated businesses that develop or use multimedia technologies to produce and enhance their products and services. It is also a mark of world-class service and achievement and your passport and gateway to a host of privileges granted by the Government of Malaysia to the business entities.
MSC Malaysia status is awarded to 3 types of business entities, each with a set of different application criteria and guidelines. The qualifying business entities are:-
- Private limited companies (i.e. Sendirian Berhad)
- Institutions of Higher Learning
Malaysia MSC Status Eligibility Criteria
• Provide or heavy user of IT & multimedia products & services
• Employ a substantial number of knowledge workers
• Strong value proposition specifying how operations will contribute to the development of MSC Malaysia
• Establish separate legal entity for MSC-qualifying activities
• Locate in a MSC Malaysia designated Cybercity or Cybercentre
• Comply with environmental guidelines
Activities Not Eligible For MSC Malaysia Status
1. Trading companies / resellers
2. Configuration of existing foreign developed software
3. Integration of 3rd party software & hardware
5. Technical Support Services for 3rd party providers
6. Licensed MCMC VOIP/Telecom service providers
7. Shared Services and Outsourcing companies that provide services for
8. Companies already enjoying Pioneer Status/ITA
9. Companies formed for sole purpose of undertaking contractual work for
Malaysian Federal Govt/ State Govts only
10. Companies seeking to bring in Foreign Knowledge Workers for subcontract
(Body shopping) and turn-key projects
Why should I get MSC Status?
You can enjoy the following benefits by getting MSC Status for your company.
Pioneer Status (PS) – Refers to 100% tax free on taxable statutory income (corporate tax) which is Governed PIA 1986 under Section 6 (1AB) & 14c. The incentive is for period up to ten years and for MSC Malaysia Status Approved activities only.
Investment Tax Allowance (ITA) – Refers to 100% deduction on capital qualifying expenditure which is Governed PIA 1986 under Section 27A. The capital qualifying expenditure includes hardware & software, purchase / renovation of office/building and greenery/landascaping expenses in Cyberjaya. The investment must be made within five years of Operations from the date of MSC Malaysia Status approval and must be offset against Taxable Income. Any excess ITA can be carried forward beyond 5 years.
Duty Free Importation – Refer to import duty and sales tax exemption applications from MSC Malaysia Status companies and this incentives is a part of the MSC Malaysia Bill of Guarantees. Terms and Conditions apply.
Foreign Knowledge Workers – Refer to application services of employment passes for Foreign Knowledge Workers for MSC Malaysia Status Companies.