On 24 May 2022, the Finance Ministry of Malaysia has issued the Income Tax (The Principal Hub Incentive Scheme) Rules 2022. The rules may be cited as the Income Tax (The Principal Hub Incentive Scheme) Rules 2022. These Rules shall apply to a qualifying company which applies in writing for the Principal Hub Incentive Scheme to the Minister through the Malaysian Investment Development Authority and such application is received on or after 1 January 2021 but not later than 31 December 2022.
“Principal Hub Incentive Scheme” means an incentive scheme for the qualifying company which carries on a qualifying activity and approved by the Minister. “Qualifying company” means a new company or an existing company that fulfils the eligibility condition imposed by the Minister under the Act and these Rules. The rate of income tax which shall be charged under these Rules for the specified years of assessment on the chargeable income of a qualifying company which carries on business in respect of a qualifying activity under the Principal Hub Incentive Scheme is at the rate specified in Schedule 2.
