Manufacturing
The eligibility tax incentives for companies investing in the manufacturing sector is based on certain priorities, including the level of value-added, technology used and industrial linkages. Eligible activities and products are termed as “promoted activities” or “promoted products”.
Under the Promotion of Investments Act (PIA), 1986, the main criteria for a company to enjoy tax incentives is that the company must be ‘desirous’ in establishing or participating in a promoted activity or producing a promoted product and has not started production.
Definition of production:
- Manufacturing company – Company has started to produce products (including trial production)
Incentives:
- Pioneer Status
- Investment Tax Allowance
Eligibility:
- Participating in a promoted activity or producing a promoted product
Promoted Product
- Chocolate and chocolate confectionery
- Vegetables, tubers or roots & fruits
- Livestock products
- Agricultural waste or agricultural by-products
- Aquatic products
- Aquaculture feed
- Plant extracts for pharmaceutical, perfumery, cosmetic or food industries and essentials oils
- Food Supplements
- Additives, flavours, colouring and functional ingredients
- Tyres for earthmover, agricultural vehicles, industries vehicles, commercial vehicles, motorcycle and aircraft.
- Latex products:
a) Safety or special function gloves - Dry rubber products
a) Beltings
b) Hoses, pipes and tubings
c) Rubber profiles
d) Seals, gaskets, washers, packings, rings and rubber linings
e) Anti-vibration, damping and sound insulation products
- Oleochemicals or oleochemical derivatives or preparations
- Palm based nutraceuticals, constituents of palm oil or palm kernel oil
- Palm-based food products and ingredients
a. Specialty animal fat replacer
b. Palm-based mayonnaise and salad dressing
c. Milk or coconut powder substitute
d. Red palm oil and related products
e. Palm-based food ingredient
f. Modified (interesterified) palm oil and palm kernel oil products
g. Margarine, vanaspati, shortening or other manufactured fat products
h. Cocoa butter replacers, cocoa butter substitutes, cocoa butter equivalent, palm mid fraction or special olein - Processed products from:
a. Palm kernel cake
b. Palm oil mill effluent
c. Palm biomass
- Chemical derivatives or preparations from organic or inorganic sources
- Petrochemical products
- Pharmaceuticals or Biopharmaceuticals
- Nutraceuticals
- Microbials and probiotics
- Design, development and production of wooden furniture
- Engineered wood products excluding plywood
- Design, development and production of wooden furniture
- Engineered wood products excluding plywood
- Corrugated medium paper, testliner or kraftliner or kraft paper and paperboard
- Kenaf based products such as animal, feed, kenaf particle or fibre, reconstituted panel board or products (such
as particleboard, Medium Density Fibreboard) and moulded products
- Natural or man-made fibres
- Yarn of natural or man-made fibres
- Woven fabrics
- Knitted fabrics
- Non-woven fabrics
- Finishing of fabrics such as bleaching, dyeing and printing
- Specialised Apparel
- Technical or functional textiles and textile products
- High alumina or basic refractories
- Laboratory, chemical or industrial wares
- Synthetic diamonds
- Crystallised or moulded glass such as bricks, tiles, slabs, pellets, paving blocks and squares
- Absorbent mineral clay
- Marble and granite products
- Panels, boards, tiles, blocks or similar articles of natural and synthetic fiber agglomerated with cement, plaster
or other mineral binding substance
- Blooms or slabs of steel
- Shapes or sections of steel of height more than 200 mm
- Plates, sheets, coils, hoops or strips of steel:
a) Hot rolled
b) Cold rolled or cold reduced - Seamless steel pipes
- Ferromanganese, silicon manganese or ferrosilicon
- Electrolytic galvanised steel sheet in coil
- Primary ingots, billets or slabs of non-ferrous metals other than tin metals
- Bars, rods, shapes or sections of non-ferrous metals except EC copper rods
- Plates, sheets, coils, hoops or strips of non-ferrous metals
- Pipes or tubes of non-ferrous metals
- Aluminium composite panel
- Specialised machinery or equipment for specific industry
- Power generating machinery or equipment
- General industrial machinery or equipment
- Modules for machinery or equipment and industrial parts or components
- Metalworking machinery or equipment
- Upgrading or reconditioning of machinery or equipment including heavy machinery
- Metal castings
- Metal forgings
- Surface engineering
- Machining, jigs and fixtures
- Moulds, tools and dies
- Heat treatment
Manufacture of electrical and electronics products and component, parts thereof and related services
- Semiconductor:
a) Wafer fabrication
b) Semiconductor assembly
c) Semiconductor components and parts:
i) advanced substrates
ii) solder materials
iii) bond pads
d) Semiconductor tools
i) wafer carriers
ii) integrated circuit (IC) carriers
iii) photomask and mask blank
e) Semiconductor related services
i) diesor wafer level preparation
ii) Integrated circuit (IC) testing
iii) wafer probing or sorting
iv) wafer bumping - Advanced display products and parts
a) advanced display products
b) advanced display modules
c) backlighting systems - Information and Communication Technology (ICT) products, systems or devices
a) digital convergence products or devices
b) data storage systems or devices - Digital entertainment or Infotainment products
a) Digital TV
b) Digital home theatre system or products thereof
c) Digital audio or video or image recorders or players - Optoelectronic equipment, systems, devices or components
a) Photonics devices or components
b) Optoelectronics equipment or systems, devices or components
c) Optical fibres or optical fibre products - Electronic tracking or security systems or devices
a) Voice or pattern or vision recognition or synthesis equipments or systems or devices
b) Electronic navigational and tracking equipment or systems or devices
c) Radio frequency identification (RFID) systems or devices - Electronic components
a) Multilayer or flexible printed circuit boards
b) Advanced connectors - Alternative energy equipment, products, systems , devices or components
a) Solar cells or panels or module or systems
b) Rechargeable batteries or storage systems
c) Fuel cells - Energy saving lighting
- Electrical products:
a) Uninterruptible power supplies
b) Inverters or converters
- Medical, surgical, dental or veterinary devices or equipment and parts or components/accessories thereof
- Testing, measuring or laboratory equipment or apparatus
- Specialised plastic films or sheets
- Geosystems products
- Engineering plastic products
- Products moulded under clean room conditions
- Biopolymers or products thereof
- Coated or knitted safety gloves
- Advance ballistic protection glass
- Fall protection equipment
- Sports goods or equipment
- Jewellery of precious metal
- Costume jewellery
- Biodegradable disposable packaging products and household wares
Above information is obtained from MIDA website. The information may be change with MIDA discretion. Please contact us to discuss in detail