Iskandar Project is an entity run by intellectual property professionals who will advice you on how to obtain the New Msc Status 4.0 (effective 1/1/2019). As you would have noted that Mdec has updated the new criteria for Msc Status which is very much biased on Intellectual Property based derived income as well as Industry 4.0 adoptions, it would be critical that the Iskandar Project Professionals be well versed in both Intellectual Property and Industry 4.0 adoptions. The reason that MDEC has updated its requirements for Msc Status 4.0 is mainly due to Malaysia's participation in the Organisation for Economic Cooperation and Development (OECD) Base Erosion and Profit Shifting (BEPS) taxation initiatives as Malaysia as a participating member would be required to adhere to the minimum standards enacted by OECD.
What it means is that in order for Malaysia to continue to extend tax incentives to Msc Status Companies (ICT), MDEC, being one of its main players who offered pioneer status (tax exemptions) would need to amend its criteria for awarding Msc Status. That is already being done since 1/1/2019, although it has suspended the Msc Status Application (for ip derived income) process since June 2018 in order to make required amendments. MDEC has however lifted the suspension effective April 2019 but only for new applications (non-ip derived income). Even though MDEC has begun accepting msc status applications (new), there are certain matters which has yet to be resolved and that is what constitutes an IP base entity that derives its income from the use of that IP. So going forward, msc status applications will be accepted but there will not be approvals whilst waiting for the confirmation of what it terms IP base derived income later on. It is also inherent that applicants for the msc status will have to amend their business model to better reflect that they derive their income from their licensing of their IPs. It is also advisable for past msc status holders (whose status will expire 30 June 2021) to re-apply for msc status with business models that are aligned with Industry 4.0 elements.
And in order to help applicants in their journey to obtaining the new Msc Status, the professioners from Iskandar Project must be knowledgeable in both Intellectual Property and Industry 4.0 structures. For this, Iskandar Project is proud to announce that its professionals are practisioners in both Intellectual Property and Industry 4.0 adoptions. Further to this, MDEC has also indicated that for all those past receiver of the msc status must also re-apply with an updated business model to reflect on those new promoted activities which are heavily biased on Industry 4.0 structures in order to continue enjoying tax incentives. If you have obtained msc status based on those past activities like Infotec, Start-Ups, Institutes of Higher Learning (IHI), Incubators and Global Business Services, you will have to terminate your tax incentives. If you need advisories, you will be in very good hands in us helping you.