STI Tax Incentives

STI Tax Incentives

A vast array of fiscal incentives in the form of tax exemption as well as double deduction for R&D expenses, has been provided by the Malaysian government as an agenda to promote R&D. Studies have shown that R&D tax incentives can be an effective instrument for inducing a certain degree of private sector research. Tax incentives can increase private research spending by an amount equal to the loss in tax revenue on average, depending on their design.
Incentive Title	Fundraising Organization
Green Investment Tax Incentives	Malaysian Green Technology Corporation
MSC Malaysia Status	Malaysia Digital Economy Corporation Sdn. Bhd.
Tax Incentives for BioNexus Status Companies	Malaysian Bioeconomy Development Corporation Sdn Bhd
Tax Incentive for Angel Investor	Cradle Fund Sdn Bhd
Special deduction under section 34A of the ITA (double deduction) for inhouse R&D expenditure	Inland Revenue Board of Malaysia (IRB)
Special deduction under section 34B of the ITA (double deduction), for – (i) contribution in cash to an approved research institute; (ii) payment for the use of the services of an approved research institute or approved research company	Inland Revenue Board of Malaysia (IRB)
Special provision under subsection 34(7) of the ITA (single deduction) for R&D expenditure	Inland Revenue Board of Malaysia (IRB)
Incentive for In-house Research And Development (R&D)	Malaysian Investment Development Authority
Incentive for R&D Company	Malaysian Investment Development Authority
Contract R&D	Malaysian Investment Development Authority
Incentive for R&D (Reinvestment)	Malaysian Investment Development Authority
Pengecualian duti import dan cukai jualan ke atas peralatan Multimedia / ICT bagi syarikat berstatus Malaysia Digital (MD)	Malaysia Digital Economy Corporation Sdn. Bhd.

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