Tax Incentive Package Unveiled for the Johor-Singapore Special Economic Zone (JS-SEZ)

Following the signing of the Johor-Singapore Special Economic Zone (JS-SEZ), the Johor State Government and Ministry of Finance (MoF) have introduced a tax incentive package to attract high-value investments and foster economic growth.

Key highlights of the JS-SEZ tax incentive package, effective 1 January 2025, are:

1. Special Corporate Tax Rate: 5% for up to 15 years for new investments in high-value sectors such as AI and Quantum Computing Supply Chain, Medical Devices, Aerospace Manufacturing and Global Services Hub
2. Flagship Development Focus: Additional tailored incentives for businesses in certain flagship areas in JS-SEZ.
3. Special tax rate for knowledge workers: 15% tax rate for 10 years for eligible knowledge workers working in JS-SEZ.

Additional initiatives include reduced entertainment duties from 2025 and streamlined investment processes via the Invest Malaysia Facilitation Centre Johor (IMFC-J).

Further details on the tax incentives and the flagship zones will be announced in due course.

Read the full media release here: https://www.mof.gov.my/portal/en/news/press-release/js-sez-incentive-package-to-drive-high-value-investments-into-johor