Kuala Lumpur:The government plans to introduce a preferential tax rate of five percent on income generated from Global Services Hub (GSH) activities for new companies, effective January 1, 2027, as announced by Prime Minister Datuk Seri Anwar Ibrahim.
According to BERNAMA News Agency, the initiative aims to facilitate business operations and attract global companies to Malaysia, enhancing the influx of top skilled talent. Anwar, who also serves as Finance Minister, presented these plans while tabling Budget 2027 in the Dewan Rakyat.
The preferential tax rate will be applied to income that exceeds the baseline for existing Principal Hub or GSH companies. The incentive period for the GSH will be extended in five-year increments, with a maximum duration of 30 years.
Additionally, GSH companies involved in managing treasury and funds will benefit from exemptions on withholding tax for interest payments and stamp duty on intercompany loan agreements. These exemptions will also extend to activities under the Johor-Singapore Special Economic Zone (JS-SEZ) package.
Budget 2027, titled "Malaysia MADANI Menggapai di Langit, Mengakar di Bumi," represents the second budget under the 13th Malaysia Plan (13MP).