Tax Incentive for Commercialisation of R&D Findings
Malaysian Investment Development Authority
22/04/2025
STI Tax Incentives
A. Eligible Applicant a. Investing Company (Holding / Investor Company) i. A company incorporated under the Companies Act, 2016 and resident in Malaysia; and ii. Directly owned at least 70% of the equity of the qualifying company that undertaking the commercialisation project. b. Company Undertaking the Commercialisation Project (Qualifying Company) i. A company incorporated under the Companies Act, 2016 and resident in Malaysia; and ii. At least 70% equity owned by the investor company that has made an investment in the qualifying company that undertake the commercialisation project. B. Eligible Activity a. Commercialisation of resource based and non-resource based R&D findings wholly-owned by approved public research institute or public institute of higher learning. b. Commercialisation of resource based and non-resource based R&D findings wholly-owned by private institute of higher learning. Note: - The commercialisation includes a process of transforming research and development findings into a product or process that has an industrial application or that is marketable. - Resource based R&D covers research in the following sectors: i. Agriculture; and agriculture and food processing; ii. Oil palm products; iii. Wood and wood-based products; iv. Rubber-based products; v. Non-metallic mineral products; and vi. Natural products including pharmaceuticals - Non-resource based R&D is limited to promoted activities listed under the Promotion of Investment Act 1986 in the following sub-sectors: i. Electrical & electronics; ii. Medical devices; iii. Technical or functional textiles; iv. Machinery and equipment v. Metals; and vi. Transport equipment. - Approved public research institutions are approved research institutes such as MARDI, MPOB, Lembaga Getah Malaysia (LGM), Malaysian Cocoa Board (MCB), Forest Research Institute Malaysia (FRIM); - Public institute of higher learning such as universities as approved by MOF
Online via MIDA's online portal as follows: https://investmalaysia.mida.gov.my/EIP/InvestMalaysia.aspx
Tax Incentive for Commercialisation Of R&D Findings by Public Research Institute including Public Institute of Higher Learning or Private Institute of Higher Learning in Resource Based and Non-Resource Based industries. The incentive is given to Investing Company and Company Undertaking the Commercialisation Project as follows: a. Investing Company (Holding / Investor Company) A company that invests in its subsidiary company engaged in the commercialisation of R&D findings by public research institute including public or private institute of higher learning will be given tax deduction equivalent to the amount of investment made in the subsidiary company that undertakes the commercialisation of the R&D findings; and b. Company Undertaking the Commercialisation Project The subsidiary company that undertakes the commercialisation of the R&D findings by public research institute including public or private institute of higher learning will be given PS with income tax exemption of 100% of statutory income for 10 years.
Malaysian Investment Development Authority (MIDA) MIDA Sentral, No. 5, Jalan Stesen Sentral 5 KL Sentral, 50470 Kuala Lumpur