IMPORTANT ANNOUNCEMENTS

BioNexus Status Tax Incentive Update

1. We refer to the announcement by the Government of Malaysia on 12 June 2018, “Malaysia’s Commitment in International Tax Standard”

2. Malaysia, in principal, has committed to implementing and adhering to the Base Erosion and Profit Shifting (BEPS) Action Plan, under Organization of Economic Cooperation and Development. The implementation of BEPS Action Plan will affect the current BioNexus Status Framework and tax incentives legislation for the intellectual property (IP) and non-IP regimes. Hence, reviews and amendments are needed to be consistent with international standards.

3. Based on the above exercise, the grant of BioNexus Status and its incentives has been put on hold since 1 January 2018.

Changes to Tax Exemption

1. Previously, the tax exemption for BioNexus Status was granted for the income derived from BioNexus Status approved qualifying activities. Moving forward, the tax exemption will be granted for the income derived from non-IP and/or IP activities.

Application of BioNexus Status Incentive (Non-IP)

1. Applications for BioNexus Status Incentive (Non-IP) can be made starting from 17 September 2019.

2. For more details about eligibility criteria, promoted clusters, and conditions, please refer to the BioNexus Status 3.0 Framework Guideline (Non-IP Income) here.

3. If you are interested in applying for the BioNexus Status, please register your interest by completing the online BioNexus Registration of Interest Form. Bioeconomy Corporation will then be informed of your interest, and assistance and guidance will be provided throughout the process.

Application of BioNexus Status Incentive (IP)

1. For BioNexus Status Incentive (IP), the policy is currently under review by the Government. Bioeconomy Corporation will be releasing further information in due course.