Quick answer: Under MIDA's current guidelines, the Global Services Hub tax incentive gives a 5% rate for Tier 1 or 10% for Tier 2 on qualifying income, with paid-up capital of at least RM2.5 million. Budget 2027 proposes, for applications received by MIDA from 1 January 2027, a 5% rate for new companies, and for existing hubs 15% up to a base income and 5% above it, in five-year extensions up to 30 years. These are proposals until enacted.
- Current rates: Tier 1 at 5% and Tier 2 at 10%.
- Paid-up capital of at least RM2.5 million.
- Budget 2027 proposes 5% for new companies from 1 January 2027.
- Existing hubs would pay 15% up to a base income and 5% above it.
- The proposal is not law until enacted.
Current vs Proposed
| Current guidelines | Budget 2027 proposal | |
|---|---|---|
| Rate, new company | Tier 1: 5%. Tier 2: 10%. | 5% |
| Rate, existing company | Tier 1: 5%. Tier 2: 10%, on value-added income | 15% up to a base income, 5% on income above it |
| Base income | Not used | Average income over the last three years |
| Period | Five or ten years, depending on the tier | Every five years, up to 30 years, subject to performance |
| Applications | Received by MIDA 14 October 2023 to 31 December 2027 | Received by MIDA from 1 January 2027 |
| Status | In force | Proposal in the tabled Budget |
Proposals are not law until enacted. Confirm the final rules and MIDA’s updated guidelines before you apply.
Minimum Requirements
Under MIDA's current guidelines.
| Requirement | Tier 2 (10%) | Tier 1 (5%) |
|---|---|---|
| Paid-up capital | At least RM2.5 million | At least RM2.5 million |
| Operating expenditure | Set case by case in the approval | An adequate increase, set in the approval |
| Network companies | At least 7, including at least 3 related | At least 7, including at least 3 related |
| High-value jobs (RM10,000 or more monthly basic salary) | At least 50% filled by Malaysians | An adequate increase, filled by Malaysians |
| Key personnel | Not stated | A minimum number earning RM35,000 or more monthly basic salary |
Considering a Global Services Hub? We will test your fit under both the current and proposed rules.
Key Dates
14 October 2023
MIDA starts receiving applications under the current Global Services Hub guidelines.
1 January 2025
The Domestic Top-Up Tax takes effect for in-scope large groups.
9 October 2026
Budget 2027 is tabled and proposes the new Global Services Hub rates.
1 January 2027
Proposed start for applications under the new rates.
31 December 2027
Last date for applications under the current guidelines.
Who Fits the Global Services Hub?
- You run a regional profit and loss or business management unit.
- You do strategic business planning and corporate development from Malaysia.
- You provide at least two other strategic, business or shared services to a network of at least seven companies.
- You can commit at least RM2.5 million of paid-up capital.
- You can create high-value jobs for Malaysians.
Frequently Asked Questions
Quick answers on the Global Services Hub incentive.
What is the Global Services Hub tax incentive in Malaysia?
A MIDA tax incentive for companies that run regional profit and loss management, strategic business planning and corporate development, plus at least two other qualifying services. It gives a tax rate of 5% or 10% under the current guidelines.
What is the current Global Services Hub tax rate?
Under MIDA's guidelines, Tier 1 is 5% and Tier 2 is 10%, applied to qualifying income. MOF's Budget 2027 document describes the current rate as 5% or 10% based on a performance approach.
What did Budget 2027 propose for the Global Services Hub?
For applications MIDA receives from 1 January 2027, a 5% rate for new companies. Existing Principal Hub or Global Services Hub companies would pay 15% on income up to a base income and 5% on income above it. The incentive would be extended every five years up to 30 years.
Is the Budget 2027 change already law?
It is a proposal in the tabled Budget. The Ministry of Finance's tax measures list it as a proposal for applications received from 1 January 2027. Confirm the final rules and MIDA's updated guidelines before you apply.
What is a new company for the Budget 2027 rate?
A company that has never carried out Global Services Hub or Principal Hub activities. An existing company is one previously approved for those incentives, or one adding new services in an extension application.
How is the base income worked out?
For existing companies, the base income is the average income over the last three years.
What are the minimum requirements?
Under MIDA's guidelines, paid-up capital of at least RM2.5 million, serving or controlling at least seven network companies including at least three related companies, and high-value jobs. Operating expenditure and job targets are set case by case.
What are the qualifying activities?
A regional profit and loss or business management unit, strategic business planning and corporate development, plus at least two other services from the strategic, business or shared services lists.
What is the application deadline under the current guidelines?
MIDA must receive the application between 14 October 2023 and 31 December 2027. Apply before the project starts, which means before the first sales invoice.
Does the global minimum tax affect this incentive?
It can for large groups. The Domestic Top-Up Tax applies from 1 January 2025 to groups with annual global revenue of at least EUR 750 million whose Malaysian effective tax rate is below 15%.
Is there a benefit for treasury functions?
The Budget 2027 proposal adds a withholding tax exemption on interest paid to non-residents and a 100% stamp duty exemption on inter-company foreign currency loan agreements for treasury and fund management cash pooling.
About This Guide
This guide was prepared by Neutral Consulting PLT, a Kuala Lumpur firm of chartered accounting and advisory professionals with 10 years in practice. We help foreign and local companies set up, stay compliant and hire talent in Malaysia. Every figure and rule here was checked against the official sources listed below in November 2026.
Sources
Official sources
- MIDA, Global Services Hub Tax Incentive guidelines
- Ministry of Finance, Budget 2027 tax measures
- MIDA, Budget 2027 summary
- Ministry of Finance, Budget 2027 speech
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with MIDA and the Ministry of Finance, or with us, before you act. Checked November 2026.
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