Incentive for In-house Research And Development (R&D)
Malaysian Investment Development Authority
20/06/2023
STI Tax Incentives
Eligibility Criteria for Tax Incentive ● The company must be incorporated under the Companies Act 2016 and resident in Malaysia. ● The R&D activities undertaken must comply with the definition of R&D under the Promotion of Investments Act (PIA), 1986; and ● The R&D activities undertaken must be in accordance with the needs of the country and bring benefits to the Malaysian economy.
Incentive provided for companies carrying out R&D within the company in Malaysia for the purpose of its own business. Tax Incentives Investment Tax Allowance (ITA) of 50% of qualifying capital expenditure incurred within ten (10) years. The ITA can be offset against 70% of statutory income in each year of assessment. Unutilised allowances can be carried forward until fully absorbed
Puan Santha Devi Subramaniam Director Strategic Planning & Policy Advocacy (Services) Division Malaysian Investment Development Authority (MIDA) MIDA Sentral, No. 5, Jalan Stesen Sentral 5, Kuala Lumpur Sentral, 50470 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur