To position Malaysia as a hub for Advanced Integrated Circuit Design, Dato’ Seri Anwar Ibrahim, Prime Minister and Minister of Finance, announced in the 2025 Malaysian Budget Speech that an income tax exemption up to 70% of the statutory income equivalent to 50% on the value of increased exports will be granted for the export of integrated circuit design services, commencing from year of assessment 2025.
 
This exemption has now been formalised by the gazettement of the Income Tax (Exemption) (No. 9) Order 2002 (Amendment) Order 2025 [P.U.(A) 117/2025] on 14 April 2025 which amends the Income Tax (Exemption) (No. 9) Order 2002 [P.U.(A) 57/2002].
 
Alert by Victoria Low (Associate) of the Tax Practice of Skrine.