KUALA LUMPUR, Oct 9 (Bernama) -- The government plans to improve the Global Services Hub (GSH) tax incentive by implementing a preferential tax rate of five per cent on income generated from GSH activities for new companies, starting Jan 1, 2027, said Prime Minister Datuk Seri Anwar Ibrahim.
The initiative would further facilitate business operations, making it easier for global companies to operate in Malaysia and bring in top skilled talent, said Anwar, who is also Finance Minister, when tabling Budget 2027 in the Dewan Rakyat today.
“A preferential tax rate of five per cent will apply to income exceeding the prescribed baseline income for existing Principal Hub or GSH companies. The GSH incentive period will be extended in five-year increments, up to a maximum of 30 years,” he said.
Anwar said GSH companies managing treasury and funds would be exempt from withholding tax on interest payments, as well as stamp duty on intercompany loan agreements.
He said the exemptions would also apply to these activities under the Johor-Singapore Special Economic Zone (JS-SEZ) package.
The fifth MADANI Budget, themed “Malaysia MADANI: Menggapai di Langit, Mengakar di Bumi”, is the second budget under the 13th Malaysia Plan (13MP).
-- BERNAMA