Navigating incentives across Southeast Asia

Southeast Asia is a dynamic hub for business growth, providing a range of incentives to attract investment, such as tax exemptions, investment allowances, and sustainability-driven benefits. These incentives are customized to align with each country’s economic goals. To fully capitalize on these opportunities, businesses must navigate the region’s diverse regulations with strategic planning.

Navigating incentives across Southeast Asia By Country

• Singapore offers innovation schemes like the Enterprise Innovation Scheme (EIS), providing up to 400% tax deductions, and sustainability incentives like the Investment Allowance for Emissions Reduction (IA-ER).
• Malaysia has green investment tax allowances and pioneer status for up to 100% income tax exemption for 5-10 years.
• Indonesia provides tax holidays with CIT reductions of 50%-100% for 5-20 years and super tax deductions for R&D.
• Philippines offers income tax holidays for up to 10 years and a 5% special corporate income tax for export companies.
• Thailand has additional CIT exemptions for relocation and efficiency improvements.
• Vietnam provides CIT incentives by location, with up to 4 years exemption and 10% rate for 15 years, plus import duty exemptions.

Businesses should align strategies with these incentives, ensure compliance with eligibility, and consult local investment agencies like MIDA in Malaysia or BOI in Thailand for guidance. Policies may change, so staying updated is crucial.