The Inland Revenue Board of Malaysia (IRBM) concluded a brief public consultation regarding a draft public ruling on tax incentives for investments in BioNexus status companies (BSC) on 10 September 2024. The objective of this Public Ruling (PR) is to explain the tax incentives offered to an investor who has invested in a BioNexus status company in Malaysia.

The Government has granted a tax incentive for investments at the initiation of the commercialisation stage made by an investor in an approved BioNexus status company (BSC) to promote biotechnology and bio-based industry. Both the investor and the BSC would have to comply with the rules relating to the tax incentive. To qualify for the tax incentive, all prospective investors must apply to the Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation) to ensure the eligibility criteria are met and certified as approved investors.

The draft public ruling updates and supersedes Public Ruling No. 2/2023 dated 4 October 2023. It reflects the amendments introduced by the Income Tax (Deduction for Investment in a BioNexus Status Company) Rules (Amendment) 2024, extending the investment incentive’s application period to 31 December 2024.

This new public ruling follows Public Ruling No. 2/2023 issued on 4 October 2023. This Public Ruling replaces and updates Public Ruling No.10/2018 of 4 December 2018.

Under the new draft public ruling, applications to invest in a BSC must be submitted to the Minister of Finance for approval between 1 January 2023 and 31 December 2024.

According to the previous ruling, applications must be submitted between 1 January 2021 and 31 December 2022. Additionally, updates have been made to clarify that investments should occur no earlier than 1 January 2023 and no later than 31 December 2024.

Investments must be made between 1 January 2021 and 31 December 2022 following the previous ruling.

Additionally, the examples of public rulings have been updated to reflect new years and dates due to the extended investment incentive.

The public ruling is set to be finalised and published with no significant changes.