MIDA approves second round of tax incentive for GD Express

MIDA approves second round of tax incentive for GD Express

10 Nov 2020

GD Express Carrier Bhd (GDEX) said its wholly-owned subsidiary GD Express Sdn Bhd (GDSB) has received an approval letter from the Malaysian Investment Development Authority (MIDA) for a second round of integrated logistics services (ILS) tax incentive.

In a filing with the bourse, GDEX said GDSB will be eligible for income tax exemption, via pioneer status, of up to 70% on statutory income for each year of assessment for a period of five years.

“At this junction, the board has yet to quantify the amount of tax saving from the ILS incentive as the effective date of the pioneer stats has yet to be finalised and determined.

“GDSB has made an appeal on certain terms and conditions stipulated in the MIDA approval letter, while in the process of applying to MIDA on the effective date of the pioneer status. The company will make further announcements on the development of the appeal and application in due course,” said the group.

The board of GDEX is of the opinion that the ILS incentive would contribute positively to strengthening the group’s operations and future earnings.

GDEX’s share price fell two sen or 4.44% to 43 sen, giving a market capitalisation of RM2.43 billion.

Source: The Edge Markets Posted on : 10 November 2020