INGENIEUR
GUIDELINES FOR
PRINCIPAL HUB INCENTIVE
By Malaysian Investment Development Authority
1. DEFINITION OF PRINCIPAL HUB
A locally incorporated company that uses
Malaysia as a base for conducting its regional
and global businesses and operations to
manage, control, and support its key functions
including management of risks, decision
making, strategic business activities, trading,
finance, management and human resource.
2. INCENTIVES FOR PRINCIPAL HUB
An approved Principal Hub company is eligible
for a 3-tiered corporate taxation rate as
follows:
3-tier
Incentive
Blocks
(years)
Tax rate
Tier 3
5
+5
Tier 2
5
10%
+5
5%
Tier 1
5
+5
0%
3. ELIGIBILITY CRITERIA FOR PRINCIPAL HUB
INCENTIVE
3.1 Local incorporation under the Companies
Act 1965
3.2 Paid-up capital of more than RM2.5
million.
3.3 Minimum annual sales of RM300 million
(Additional requirement for goods-based
applicant company).
3.4 Serves and control network companies in
at least three countries outside Malaysia
Network companies “related companies
or any entity within the group including
subsidiaries, branches, joint ventures,
franchises or any other company related
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VOL 55 JUNE 2013
to applicants’ supply chain and business
with contractual agreements”.
3.5 Carry out at least three qualifying
services, of which one of the qualifying
services must be from the strategic
services cluster as follows:
i. Strategic Services
a. Regional P&L/ Business Unit
Management
P&L Management focuses on
the growth of the company
with direct influence on how
company resources are allocated
- determining the regional/ global
direction, monitoring budget
expenditure and net income,
and ensuring every programme
generates a positive ROI
b. Strategic Business Planning and
Corporate Development
c. Corporate Finance Advisor y
Services
d. Brand Management
e. IP Management
f. Senior-level Talent Acquisition and
Management
ii. Business Services
a. Bid and Tender Management
b. Treasury and Fund Management
c. Re search, D evelopment &
Innovation
d. Project Management
e. Sales and Marketing
f. Business Development
g. Te c h n i c a l
Suppor t
and
Consultancy