JS-SEZ Cut Tax Rates to Benefit Businesses and Knowledge Workers
The newly established Johor Singapore Special Economic Zones (JS-SEZ) results from Malaysia and Singapore’s collaborative efforts to attract quality investments. The JS-SEZ offers incentives such as cut tax rates for businesses and knowledge workers.
As such, recently, in collaboration with Malaysia’s finance ministry, the Johor state government announced a tax incentive package that is expected to attract enterprises to hire highly skilled knowledge workers. The package includes a five per cent corporate tax rate, tailor-made business incentives for businesses operating in specific flagship areas of JS-SEZ, and a special tax rate for knowledge workers.
Cut Tax Rates Benefits
JS-SEZ knowledge workers who qualify can get a 15% tax rate for up to ten years. The tax incentive for knowledge workers is a smart move towards building a thriving ecosystem of knowledge-intensive businesses, as it assures long-term economic stability and maintains the country as an attractive place for talent and investment.
Companies undertaking new investments in qualifying manufacturing and services, such as artificial intelligence, quantum computing, medical devices, and aerospace manufacturing, can expect a 5% corporate tax rate. Companies setting up or operating global services hubs in JS-SEZ are entitled to a five-percent corporate tax rate for up to 15 years.
In addition to the five percent corporate tax rate, businesses operating in specific flagship areas of the JS-SEZ are entitled to additional benefits tailored to their business segments. The JS-SEZ extends from the Iskandar development region to Forest City, Pengerang Integrated Petroleum Complex, and Desaru.
The tax incentive package will increase Johor’s worldwide investment appeal while establishing Malaysia as a top investment destination. The strengthened partnership between Malaysia and Singapore will attract more high-quality investments, boost economic growth, and create higher-paying jobs.
