How do I
qualify myself for Iskandar Regional Development Authority (IRDA)
status?
By
Lim Boon Ping, Registered Estate Agent, Tiram Realty, Johor Bahru,
Johor
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Already many of my Singaporean clients asking me this question, as
they are all very interested to know the details so as to benefit
from the incentives given by the Malaysian government, especially
on tax.
Before i start answering the question, here's a brief elaboration
for you on the IRDA status. For the purpose of boasting the initial
investment into Iskandar Development Region (IDR) , our government
has come up with this thing called Incentive and Support Package
(ISP). This package is targeted at the service sector.
ISP consists of the following:
(i) Exemption from the Foreign Investment Committee rules;
(ii) Freedom to source capital globally;
(iii) The ability to employ foreign employees freely within the
approved zones, depending on the amount of space occupied in these
zones;
(iv) Exemption from corporate income tax for a period of 10 years
from commencement of operations for activities within the zone and
outside Malaysia, provided these operations commence before the end
of 2015; and
(v) Exemption from withholding tax on royalty and technical fee
payments to non-residents for a period of 10 years from
commencement of operations.
So, in order to qualified for the above incentives, the company
must be an IRDA-status company. There's two general criteria to
fulfil in order to qualify as an IRDA-status company, namely:
(1) Amongst the six Qualifying Activities
(i) Creative industries
(ii) Educational services
(iii) Financial advisory and consulting services
(iv) Healthcare services
(v) Logistics services
(vi) Tourism related activities
(2)Situated in the designated IRDA-approved zones
To my best knowledge, there is two such zones available, and the
first zone is already in the process of finalizing.
Doesn't sound very tedious, does it? Please note that this initial
ISP is targeted mainly on service sector at current stage. As for
the detailed qualifying process, we were told finalised report will
be released latest by the third quarter 2007.
By
Lim Boon Ping, Registered Estate Agent, Tiram Realty, Johor Bahru,
Johor
www.blog.tiramrealty.com.my
Over 20 years of experience in
Malaysian Johor property market, Johor's established registered
estate agency, Tiram Realty, offers FREE tips and info on the
selling, buying, renting and auction of Malaysia's
properties.
