On 8 January 2025, the Ministry of Finance and the Johor State Government announced the Johor Special Economic Zone (JS-SEZ) incentive package, reinforcing Johor as a premier investment hub. In response, the Malaysian Investment Development Authority (MIDA) has released details on the JS-SEZ tax incentives, designed to attract businesses across nine flagship areas within the JS-SEZ.
Key Highlights
- Attractive Corporate Tax Rates – As low as 5% CIT for up to 15 years for eligible sectors
- Investment Tax Allowance (ITA) – Up to 100% ITA on qualifying capital expenditure for high-impact industries
- Stamp Duty & Sponsorship Incentives – 40% stamp duty exemption on commercial property transfers & tax deductions up to RM1 million for hallmark event sponsorship
- Sector-Specific Incentives – Tailored tax benefits for global services, smart logistics, specialty chemicals, aerospace, AI, medical devices, and tourism
Additional Incentives
- Knowledge Worker Incentives – 15% flat tax rate on chargeable employment income for a period of 10 years
- Renovation Cost Incentive – Accelerated Capital Allowance (ACA) of up to 60% on qualifying renovation expenses
Application Timeline & Process
📅 Application period: 1 January 2025 – 31 December 2034
MIDA will release a detailed guideline on the application process soon.
To explore how your business can benefit from the JS-SEZ tax incentives, connect with our Tax team today.
Access the article below to read more on the full details of the Tax Incentives Package in the JS-SEZ.