Professional Documents
Culture Documents
Page 2 29/5/2019
Incentive for Research and
Development
• Introduced R&D in year 1982 as a 133% eleveted
deduction, soon increasing the benefir to an attractive,
internationally competitive double deduction (200%)
in year 1986.
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Incentive for Research and
Development
R&D Company
• company that provides R&D services in Malaysiato its
related and/or unrelated companies can enjoy
• ITA of 100% of qualifying capital expenfiture (QCE)
incurred within 10 years, can offset against 70% of
statutory income.
In-house R&D
• Company carries out R&D within the company in
Malaysia for the purpose of its own business
• ITA of 50% QCE within 10 years, can offset against
70% statutory income.
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Incentive for Research and
Development
Contract R&D
• Comapny that provides R&D service in Malaysia to
its unrelated companies.
• Pioneer status -income tax exemption of 100% on
statutory income for 5 years
• ITA for 100% of QCE within 10 years, cna offset
against 70% of statutory income for each year of
assessment.
Page 5 29/5/2019
Incentives for Small and
Medium Enterprises
Under tax purposes, SMEs defined as :
a company resident in Malaysia with a paid up of ordinary
shares capital of RM2.5million or
Page 7 29/5/2019
Incentives for Small and
Medium Enterprises
The following incentives are entitled for small scale companies:
Page 8 29/5/2019
Effectiveness and Effects of
Tax Incentives
Effectiveness means that tax incentives meet the stated
objective.
Page 11 29/5/2019