Definition of a MSC Status Company
The MSC Malaysia status was introduced by the government of Malaysia to boost growth in the country’s Digital Economy. The Malaysian government gives the recognition of an MSC status company to ICT businesses through the Multimedia Development Corporation (MDeC).
The MSC Malaysia status provides ICT-related businesses a whole range of incentives in order to promote continued growth.
The MSC Malaysia programme was established in 1996 and it has approximately 4700 companies that have been awarded the MSC status in Malaysia.
Find out what are the benefits of having an MSC status for your company below.
What are the benefits of having an MSC Status?
Companies with the MSC status recognition, will be granted a 100% tax exemption from its statutory income which is renewable for up to 10 years. This starts from the date the company starts making income.
Also read: Tax Incentives for Companies in Malaysia
Besides that, your company will also receive a 100% Investment Tax Allowance (ITA) if your business makes a new investment in one of Malaysia’s Cybercities or Cybercentres.
Another key benefit of the MSC status recognition is that your business will be eligible for R&D grants. However, it must be noted that this is only applicable for Malaysian majority owned companies.
Duty-free incentives will be provided for companies using multimedia equipment in the operation of its business. This incentive is, however, not applicable for equipment that are for sale.
Freedom of capital
Another significant benefit of having the MSC status is that the government of Malaysia does not impose any restriction on the employment of foreign workers in this field.
On top of that, the company is also allowed to source capital globally for the improvement of the infrastructure in the MSC company located in Malaysia.
The owners of the MSC status company have the freedom of ownership in that they need not worry about local ownership requirements.
For MSC companies located within Malaysia, the Malaysian government guarantees competitive telecommunication tariffs and services.
Nevertheless, the MSC status company can enjoy the benefit of having intellectual property protection.
Engaging a professional team such as WeCorporate will help you start your MSC status business smoothly and cost-effectively.
FAQs about MSC in Malaysia
- There are two types of visas under the Malaysia Tech Entrepreneur Programme (MTEP), namely, Professional Visit Pass and Residence Pass.
- Yes. Our tax team are experts in Malaysia’s corporate tax and we can help you increase your business profitability while staying compliant with Malaysian regulations.
- Firstly, in order to qualify to be recognised as an MSC status company, the business needs to be ICT related. The key difference between these two is that an MSC company does not have a local ownership requirement as opposed to a general company incorporation.
Register your MSC company today!
Our experts at WeCorporate will guide you through the whole process.