Sneak Peek: Concessionary tax rates for Johor-Singapore Special Economic Zone
It may be recalled that in its coverage of the launch of the Johor-Singapore Special Economic Zone (“JSSEZ”) on 7 January 2025, the Edge had reported that “A special corporate tax rate will be given to companies that undertake new investments and value added activities within the JS-SEZ, and a special personal income tax rate will be announced at a later date by the Malaysian ministry of finance.”¹
The Johor Investment, Trade, Consumer Affairs and Human Resources Committee Chairman, Lee Ting Han informed reporters on the sidelines of an event on 14 January 2025 that “Investors that fund more than RM1 bil in the JS-SEZ will be offered a corporate tax rate of 5% for a period of 15 years while investors that finance RM500 million to RM1 bil will be offered 5% for a period of 10 years.”² These rates are significantly lower than the current corporate tax rate of 24%.
