A. Hotels & Resorts
1. Companies undertaking new investments in 4-5 star hotels and resorts within the Kinabalu Gold Coast Enclave (KGCE) are eligible to
apply for:
- Full tax exemption on statutory income for a period of 10 years; or Investment Tax Allowance of 100% on qualifying capital expenditure incurred within a period of 5 years. The allowance can be used to offset against 100% of statutory income for each year of assessment.
- Exemption on import duty and sales tax subject to current policy; and
- Stamp duty exemption on land acquired for development.
2. The hotel/ resort must be registered and certified by the Ministry of Tourism Malaysia (MoTour).
3. The hotel/ resort must obtain approval for establishment from MoTour before submission of application to SEDIA.
4. The incentives are applicable for applications received by SEDIA from 1 January 2013 until 31 December 2020.
5. Applications for item 1.i. and iii. should be submitted using Form SDC_KGCE-H&T. Form SDC_ID&ST should be used for item 1.ii.
6. Applications including supporting documents for item 2. & 3. should be submitted to SEDIA.
B. Creative Clusters
1. Companies undertaking new investments in creative art and design institutions within the KGCE are eligible to apply for:
- Full tax exemption on statutory income for a period of 5 years; or Investment Tax Allowance of 100% on qualifying capital expenditure incurred within a period of 5 years. The allowance can be offset against 100% of statutory income for each year of assessment; and
- Full exemption on import duty and sales tax exemption subject to current policy.
2. Definition of art and design academy:
- Art/ design academy is a school dedicated for studies intended to provide technical knowledge and intellectual skills in design and creative arts, taught by professional designers. The school provides facilities such as design studios for fashion design and other design related activities.
- School of Performing Arts is an institution for arts education including dance, theatre, musical theatre, design and production (technical theatre) etc, taught by professional artists. The school features facilities such as dance studios, music labs, and dedicated space for theatre, art programmes.
3. Companies operating the school must be incorporated in Malaysia under the Companies Act, 1965.
4. The school must be registered and accredited by Ministry of Higher Education (MOHE).
5. The school must obtain approval for establishment from MOHE before submission of application to SEDIA.
6. Applications for item i. and ii. should be made by using the SDC_KGCE-CC Form and SDC_ID&ST Form, respectively.
7. Applications including supporting documents for item 5. should be submitted to SEDIA.
Documents Required
- Completed SDC Tax Incentives Application Form
- Form 9 – Companies Act 1965 (Certificate of Incorporation of Private Company)
- Form 24 – Companies Act 1965 (Return of Allotment of Shares)
- Form 44 – Companies Act 1965 (Notice of Situation of Registered Office)
- Form 49 – Companies Act 1965 (Particulars of Directors, Managers and Secretaries)
- Memorandum & Articles of Association
- Most recent Board Minutes indicating venue of Board meeting
- Certified True Copy of Land Lease Title*
- Certified True Copy of Sales & Purchase/ Lease Agreement indicating parcel(s) of land(s) in approved Strategic Development Area (SDA) intended for development
- Proof of payment (partial or full payment) for purchase consideration as stipulated in the Sale and Purchase Agreement
- Development Conceptual Plan and Proposal
- Masterplan for the development area as stipulated in the Land Lease Title and/ or Sales & Purchase agreement
- Audited Financial Statements for 3 years
- Form C – Income Tax Act 1967 (Income Tax Return Form to LHDN) for 3years
(* Either in applicant company’s name, or in the name of the current registered owner/ lessor, if the lease transaction has not been completed at the time of application).
