Budget 2027: Tax Incentives, Stamp Duty Reviewed To Support Local Shipping Companies

KUALA LUMPUR, Oct 12 (Bernama) -- Tax incentives for Malaysian shipping companies are proposed to be reviewed to contribute to the growth of Malaysian shipping fleet and reduce dependence on foreign vessels as well as enhance the inflow of ship freight revenue into Malaysia in the long term.

The Ministry of Finance said the full income tax exemption for Malaysian shipping companies is subject to strategic management and effective control being implemented in Malaysia as well as annual operating expenditure in Malaysia of at least RM250,000 for each Malaysian ship.

“In addition, the employment of at least four Malaysian workers with an average monthly salary of RM15,000 for each Malaysian ship is also a condition imposed for the tax incentive,” said the MoF in the Budget 2027 Tax Measures document today.

At the same time, MoF said the maximum limit of stamp duty imposed on loan or financing agreement for the purchase or construction of Malaysian ships, with RM2,000 for loan or financing amounting up to RM100 million; and RM5,000 for loan or financing exceeding RM100 million.

“Full stamp duty exemption on instruments executed by a Labuan entity in connection with a Labuan business activity under the Stamp Duty (Exemption) (No. 3) Order 2012 [P.U.(A) 268/2012] is maintained.

“The income tax exemption is from the years of assessment 2027 until 2036, while imposition of stamp duty at a maximum limit is for loan or financing agreements executed from Jan 1, 2027,” it added.

-- BERNAMA