On 17 February 2022, the Finance Ministry of Malaysia has published the  Income Tax (The Incentive for Manufacturers of Pharmaceutical Products Scheme) Rules 2022 effective from the year of assessment 2021.
The Rules apply to a pharmaceutical manufacturer whose application is being considered as a qualifying entity under the Pharmaceutical Manufacturer Incentive Scheme. A qualifying company is one that meets all the conditions set out in the Guidelines for Incentives for Manufacturers of Pharmaceutical Products including Vaccines under Budget 2021 or as revised by the Malaysia Investment Development Agency and approved by the Minister.
Applicable rate: – (a) for the first period of ten years of assessment, zero to ten percent; or (b) for the next period of ten years of assessment, ten percent.
Manufacturing companies seeking to benefit from the incentive scheme must have their applications approved by the Minister. Such applications must have been received on or after 1 January 2021 but no later than 31 December 2022.
