Incentive for In-house Research And Development (R&D)

Incentive Category

Scope of Funding

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

Application Method

Online
https://investmalaysia.mida.gov.my/EIP/InvestMalaysia.aspx

Qualification Criteria

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.

Contact Information

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

santhadevi@mida.gov.my

Telephone

03-22676722

Website

https://investmalaysia.mida.gov.my/EIP/InvestMalaysia.aspx

Last modified

20 June 2023

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