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01
What Reinvestment Allowance is
RA encourages Malaysian resident companies to reinvest business profits into expansion, modernisation, automation or diversification into related products within the same industry. It is common in manufacturing, processing, agriculture and integrated activities.
02
What Investment Tax Allowance is
ITA is an incentive on capital expenditure incurred by a company participating in a promoted activity or producing a promoted product. LHDN's FAQ notes that ITA applications are under MITI's jurisdiction.
03
What Pioneer Status is
Pioneer Status is an incentive concept under the Promotion of Investments Act 1986. It is usually linked to promoted activities or products and requires approval by the relevant authority.
04
What to prepare before applying
Show whether the company carries out a promoted activity.
Machinery, equipment, factory, automation or investment details.
Revenue, cost, employment, export or technology input.
Confirm eligibility, application route and risk with a tax professional.
05
Official sources and disclaimer
This guide is for general educational purposes only and is not tax advice. Tax rates, deductions, filing deadlines and incentive eligibility may change and depend on each company's facts. Please consult a tax professional or refer to the latest LHDN guidance before making decisions.