KUALA LUMPUR: The Ministry of Finance has approved a tax incentives package to be listed under the Sabah Development Corridor.
Chief Minister Datuk Seri Musa Haji Aman said the package would enable the Sabah Economic Development and Investment Authority (SEDIA) to further attract investors globally and from other parts of Malaysia to Sabah, promoting the state as an ideal location for conducting business.
Musa, who is SEDIA chairman, disclosed this when Warisan Harta Sdn Bhd handed over RM15 million dividend to the Sabah state government here yesterday.
Warisan Harta Sdn Bhd is an investment arm of the Sabah state government and also one of the Entry Point Project owners under SDC.
“The investment tax incentive package will cover activities in, among others, the tourism, manufacturing and agriculture sectors and major industries located within the Strategic Development Area as follows; the Kinabalu Gold Coast Enclave, Integrated Livestock Valley, Sabah Agro-Industrial Precinct, Sandakan Education Hub, Sabah Oil and Gas Industrial Park, Lahad Datu Palm Oil Industrial Cluster and the Marine Integrated Cluster,” said Musa.
The tax incentives will vary based on the focus areas, offering incentives such as full tax exemption on statutory income for up to ten years, investment tax allowance of 100 per cent on qualifying capital expenditure for five years, and full exemption on import duty and sales tax exemption, subject to current policy.
The period for tax incentives are for applications received by SEDIA up until 31 December 2020. The tax incentives mechanism is under the jurisdiction of the National Committee on Investments (NCI).
Present at the dividend presentation ceremony were permanent secretary to the Sabah Finance Ministry, Datuk Pengiran Hassanel Pg Haji Mohd Tahir, Warisan Harta chairman Datuk Ramlee Marhaban, Sabah State Attorney General Datuk Roderic Fernandez, SEDIA chief executive officer Datuk Dr Mohd Yaakub Haji Johari, Warisan Harta CEO Datuk Abu Bakar Abas and board members.