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Investment Tax Incentive Package for Sabah Development Corridor (SDC)
 

Location Flagship and Qualifying Activities Tax Incentives
Kinabalu Gold Coast Enclave (KGCE)

- Kota Kinabalu
A. Tourism Project
  • Hotel
  • Resort

A. Tourism Project
  • Full tax exemption on statutory income for 10 years; or Investment Tax Allowance of 100% on qualifying capital expenditure for 5 years - can be offset against 100% of statutory income.

  • Exemption on import duty and sales tax subject to current policy; and

  • Stamp duty exemption on land acquired for development.

B. Creative Cluster
  • Design Academy
    - Product design
    - Fashion/accessories design
  • Academy of Art
    - Arts and crafts
    - Drawing
    - Sculpture
  • School of Arts
    - Dance
    - Drama
    - Music
B. Creative Cluster
  • Full tax exemption on statutory income for 5 years; or Investment Tax Allowance of 100% on qualifying capital expenditure for 5 years - can be offset against 100% of statutory income; and

  • Full exemption on import duty and sales tax exemption subject to current policy.
integrated livestock valley (ILV)

- Keningau

Downstream Activities

  • Manufacturing of cattle feed
  • Manufacturing of dairy-based products
  • Manufacturing of meat-based products

Full tax exemption on statutory income for 10 years; or Investment Tax Allowance of 100% on qualifying capital expenditure for 5 years - can be offset against 100% of statutory income, subject to qualifying activities/ products under the Promotion of Investment Act 1986.
sabah agro-industrial precinct (SAIP)

- kimanis, papar

Production of Halal Food

  • Downstream Activities Processing of agricultural produce for:
    - Pharmaceuticals or biopharmaceuticals
    - Biodiagnostics
    - Food or feed supplements
    - Horticultural products
    - Nutraceuticals
    - Microbials & probiotics

  • Development & Production of:
    - Cell/ tissue cultures
    - Biopolymers
    - Biomaterials
    - Biotechnology process of waste treatment

A. Projects located within the Halal Hub
  • Investment Tax Allowance of 100% for 10 years - can be offset 100% against statutory income.


B. Projects located outside the Halal Hub

Investment Tax Allowance of 100% for 10 years – can be offset 100% against statutory income.

  • Exemption on import duty and sales tax, subject to current policy;

  • Qualifying products/ activities will be determined.

Palm Oil Industry Cluster (POIC)

- Lahad Datu

Downstream Activities - Manufacturing

  • Oleochemical
  • Biofuel
  • Transfree Food Products

Full tax exemption on statutory income for 10 years; or Investment Tax Allowance of 100% on qualifying capital expenditure for 5 years - can be offset against 100% of statutory income, subject to qualifying activities/ products under the Promotion of Investment Act 1986.
Sabah Oil & Gas Indutrial Park (SOGIP)

- Sipitang
Downstream Activities – Manufacturing

  • Medium & Heavy Industries
    - Urea and ammonia production
    - Solar glass
    - Ship building and repairs
    - Marine supply base and fabrication yard
    - Iron ore palletising
    - Hot briquette iron
    - Combined cycle power plant

Full tax exemption on statutory income for 10 years; or Investment Tax Allowance of 100% on qualifying capital expenditure for 5 years - can be offset against 100% of statutory income, subject to qualifying activities/ products under the Promotion of Investment Act 1986.

For ship building and repairs industry, incentives are offered under Income Tax Act 1967 as follows:

  • Full tax exemption on statutory income for 5 years; or

  • Investment Tax Allowance of 100% on qualifying capital expenditure for 5 years - can be offset against 100% of statutory income.
sandakan education hub

- sandakan

  • Private Universities
  • Private Colleges
  • Training Centres
  • Skill Training Centres

  • Full tax exemption on statutory income for 10 years; or Investment Tax Allowance of 100% on qualifying capital expenditure for 5 years - can be offset against 100% of statutory income.

  • Exemption on import duty and sales tax exemption on equipments and machineries used, subject to current policy.
Marine Integrated Cluster (MIC)

- Semporna

Downstream Activities:

  • Production of aquaculture products
  • Seafood
  • Fresh and dried export
  • Cosmetics material
  • Pharmaceutical products

  • Full tax exemption on statutory income for 10 years; or Investment Tax Allowance of 100% on qualifying capital expenditure for 5 years - can be offset against 100% of statutory income.

  • Exemption on import duty and sales tax exemption on equipments and machineries used, subject to current policy.
Applications received by 31 December 2020 are eligible for these incentives. All applications should be submitted to SEDIA.
 

 
Incentive Process Flow
Incentives Guidelines
Required Documents
Download Incentives Form
 
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