KUALA LUMPUR, Oct 8 (Bernama) — The Government has announced enhancements to the Principal Hub (PH) incentive,which waspreviously introduced in 2015. Companies with existing operations in Malaysia can now further leverage Malaysia as a base for conducting their regional or global businesses. The key functions of principal hub companies include management of risks, decision making, strategic business activities, trading, finance, management and human resource.
Effective 2019, companies approved with the enhanced Principal Hub incentive, also known as PH 2.0, will be able to enjoy a concessionary 10% tax rate for their operations in Malaysia. This is to replace the previous tax treatment whereby companies with existing Malaysian operations could only enjoy tax exemption on incremental income. New companies that have yet to establish a presence in Malaysia can enjoy up to 0% tax rate for 10 years based on their level of commitments.
