Malaysia has enacted several tax incentives to encourage economic activity and investment.
The current corporate profits tax rate in Malaysia is 24%, however with certain tax incentives like the ITA program, eligible companies might pay only minimal corporate tax.
The ITA program is specifically suitable for companies with large capital investment and provides tax relief period, usually from 5 to 10 years based on the value of qualifying capital expenditure (e.g. factory and machinery).
Tax-free status for 10 years
Altech has estimated that based on modelling and applying the approved ITA, it is expected that its high purity alumina (HPA) project will not be liable for Malaysian profits tax on its statutory business income until after year 10 of operations.
Altech managing director Iggy Tan said: “The company is delighted with the decision of the Ministry of Finance, Malaysia to award ITA incentive to our HPA project for a 10-year period.
“This is an outstanding outcome for the project and Altech.
“The unwavering advocacy, guidance and support of MIDA for our HPA project through the ITA incentive application process has been much appreciated.
“Construction of our HPA plant continues to progress in accordance with schedule, completion of electrical substation is the next significant construction milestone.