To promote electric mobility, in 2023 the Malaysian government introduced a tax incentive to attract investment in the manufacturing of electric vehicle charging equipment, ensuring local production at a competitive cost.
The proposed tax exemption includes:
- 100% income tax exemption for a 10 years period, from 2023 to 2032, for manufacturing companies that make early investments in 2023. Companies investing after 2023 will receive the remaining exemption period only;
- 100% Investment Tax Allowance for a 5 years period for manufacturing companies that can be compensated by up to 100% of their statutory income for each year.