Special provision under Subsection 34(7) of the Income Tax Act 1967 (single deduction) for R&D expenditure
Inland Revenue Board of Malaysia
20/06/2023
STI Tax Incentives
i. Undertake an R&D activity which fulfils the definition of R&D, and its qualifying criteria to qualify as a qualifying R&D activity; ii. A resident for tax purposes in Malaysia; iii. Undertake an R&D activity in relation to his business in Malaysia whether in-house within his business by outsourcing the activity to research institute or company, or an R & D company or a contract R & D company in Malaysia.
i. Type of R&D form: Borang 4 ii. The guidelines titled Guidelines on The Application Procedure for A Special Deduction in Respect of A Qualifying Research and Development Activity dated 29.12.2021 that can be downloaded under Technical Guidelines from the Inland Revenue Board of Malaysia’s official portal at www.hasil.gov.my.
Encourage companies to conduct in-house R&D activities or outsourced to an institute or company (no specific approval status from the relevant Minister)
Director General Of Inland Revenue Headquarters Inland Revenue Board Of Malaysia Tax Policy Sector Level 17, Hasil Tower Persiaran Rimba Permai, Cyber 8 63000 Cyberjaya Selangor. [For the attention of: Chief Tax Policy Officer]