New incentives for IDR

PUTRAJAYA, Oct 9 (Bernama) -- The Iskandar Regional Development Authority (IRDA) today announced its latest Incentive and Support Package for Node 1 of the Iskandar Development Region (IRD) which will see the package extended to approved developers and approved development managers.In a statement here today, IRDA said the approved developers would be entitled to exemption from income tax up to year of assessment 2015 on statutory income from the disposal of any right in or over land within the approved node."They will also be exempted from income tax up to year of assessment 2020 on statutory income from the rental or sale of buildings within the approved node, and exemption from withholding tax on payment made to non-residents for services, interests and royalties up to Dec 31, 2015," it said.It said the approved development managers would be entitled to exemption from tax on statutory income from the provision of management, supervisory or marketing services to an approved developer until the year of assessment 2020, and exemption from withholding tax on payments made to non-residents for services up to Dec 31, 2015.IRDA said the latest incentive package followed the previous announcement on the initial ISP in March, which was originally intended for IDR-status companies and foreign knowledge workers."Besides exemption from income tax for a period of 10 years, IDR-status companies are entitled to exemption from witholding tax on payments of services and royalties to non-residents for a period of 10 years from commencement of operations," it said.IRDA also announced the set up of one-stop centre which promised to reduce red tape and simplify approval processes for investors.Meanwhile, Prime Minister Datuk Seri Abdullah Ahmad Badawi said the government saw the need to further kickstart investments in IDR because it estimated RM40 billion was required over the first five years."The government has undertaken RM4.3 billion investment and that's why further investment would be encouraged."Since the private investment will be the catalyst for growth, there is a need to offer investors attractive fiscal and non-fiscal incentives and this is made known today," he told reporters after the meeting on the latest development of IDR at his office here.He said discussions with main investors revealed the need for fiscal incentives, the need for more efficient approval system with regard to setting up a 24-hour one-stop centre with offshore values and freedom of access to human capital."At the same time, we also meet the requirement of individual investor, as far as possible to customise this package."Certain investors have specific needs and there are very big investors too ... I would not be in the position to tell you specifically what, but the point is that it is possible to have discussions with them and to decide on their specific needs, which is part of the attractive package offer," he said.Commenting on the development there, Abdullah said: "I'm happy with the progress that has been achieved. The planning for the Node 1 is progressing very well and soon I hope by early next year, (we) can begin and start implementing the projects that have already been decided."