www.pwc.

com

MIDA
Waste Eco Park Incentives
June 2016
Waste Eco Park (WEP) Incentives
Snapshot

WEP Developer
70% Income Tax Exemption:-
Building & facility Education &
Rental of building
Disposal Rental of waste collection & separation
for waste receiving awareness
facility facility
& separation centre
and
/ or Rental of waste water treatment facility
YA 2016 to YA 2025

Waste water Recycling/ WEP Manager

WEP
treatment Recovery/ 70% Income Tax Exemption on services
manager
facility Treatment facility
related to management, maintenance,
supervision and marketing of WEP
YA 2016 to YA 2025
Qualifying activities: Waste treatment; Waste
recovery; Waste recycling
WEP Operator
100% Income Tax Exemption for 5 years; OR
Basic infrastructure such as roads, drainage system,
utilities & sewerage 100% ITA for 5 years to be offset against 70%
statutory income
MIDA June 2016
PwC 2
Existing Facilities

Co. X owns and operates the following

facilities:-
Building &
Waste water
facility for waste Disposal Building & facility for waste receiving &
treatment
receiving & facility separation;
facility
separation
Disposal facility;
Basic infrastructure such as roads, drainage system,
utilities & sewerage Waste water treatment facility;
Basic infrastructure; and
Recycling facility
[Co. Y] Building for recycling facility.
[Co. X]
Waste recycling activity is carried out by Co. Y, a
related company of Co. X:-
Undertaken by Co. Y in building leased from
Co. X but equipment are owned by Co. Y
Waste is received by Co. Y directly from
customers due to DOE licensing
requirement
Co. Y pays Co. X for waste disposal but also
sells recycled products to Co. X
MIDA June 2016
PwC 3
Future Projects

Co. X had acquired land adjoining to existing

Building &
facility for waste Disposal
Waste water facilities for purposes of future expansion
treatment
receiving & facility Projects currently in development:-
facility
separation
Centre of Excellence (COE)
Basic infrastructure such as roads, drainage system,
utilities & sewerage Scheduled Waste-to-Energy facility
(SWTE)
Recycling facility
[Co. Y]
SWTE Other future projects may also be developed
within the adjoining land
[Co. X]

Other Education & Other

future awareness future
projects centre (COE) projects

Other Other Other

future future future
projects projects projects

MIDA June 2016

PwC 4
WEP Incentive
Approach

WEP Developer Co. X

Building &
Waste water
facility for waste Disposal Co. X to apply for incentive as WEP Developer
treatment
receiving & facility with the entire facility (both existing and future
facility
separation
facilities) being regarded as WEP
Basic infrastructure such as roads, drainage system, If approved as WEP Developer, Co. X will be
utilities & sewerage
granted 70% Income Tax Exemption from YA
2016 to 2025 on:-
Recycling facility
SWTE
[Co. Y] Rental of building in WEP to Co. Y and
operators in WEP (in future)
[Co. X]
Rental of waste collection & separation
Other Education & Other facility
future awareness future
projects centre (COE) projects Rental of waste water treatment facility

Other Other Other

future future future
projects projects projects

MIDA June 2016

PwC 5
WEP Incentive
Approach
WEP Manager Co. X
As Co. X has the requisite knowledge and skills
in relation to management and maintenance of
the existing facilities, Co. X is to be designated
as the WEP Manager and apply for this
incentive
If approved as WEP Manager, Co. X will be
granted 70% Income Tax Exemption from YA
2016 to 2025 on service fee received from
operators in WEP from management,
maintenance and supervision of WEP
Co. X will maintain separate accounts for WEP
Manager incentive and WEP Developer
incentive
MIDA
PwC
WEP Operator Co. Y
As Co. Y is operating within the WEP and
carrying on the qualifying activity of waste
recycling, Co. Y to apply for incentive as WEP
Operator
If approved as WEP Operator, Co. Y will be
granted 100% Income Tax Exemption for 5
years or 100% ITA for 5 years to be offset
against 70% of statutory income on income
from waste recycling activity
June 2016
6
The End

This publication has been prepared for general guidance on matters of interest only, and does
not constitute professional advice. You should not act upon the information contained in this
publication without obtaining specific professional advice. No representation or warranty
(express or implied) is given as to the accuracy or completeness of the information contained
in this publication, and, to the extent permitted by law, PricewaterhouseCoopers Taxation
Services Sdn Bhd, its members, employees and agents do not accept or assume any liability,
responsibility or duty of care for any consequences of you or anyone else acting, or refraining
to act, in reliance on the information contained in this publication or for any decision based on
it.

2016 PricewaterhouseCoopers Taxation Services Sdn Bhd. All rights reserved. In this
document, PwC refers to PricewaterhouseCoopers Taxation Services Sdn Bhd which is a
member firm of PricewaterhouseCoopers International Limited, each member firm of which is a
separate legal entity.