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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

Incentive Category
STI Tax Incentives
Scope of Funding

Encourage companies to involve in R&D by outsourcing to  an institute or company that is approved by the relevant Minister

Application Method

i. Type of R&D form: Borang 3
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.

Qualification Criteria

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 by outsourcing the activity to approved research institute or company, or an R & D company or a contract R & D company in Malaysia

Contact Information

Ketua Pengarah Hasil Dalam Negeri
Lembaga Hasil Dalam Negeri Malaysia
Jabatan Dasar Percukaian
Aras 17, Menara Hasil
Persiaran Rimba Permai, Cyber 8
63000 Cyberjaya Selangor.
[For the attention of: Pengarah Jabatan Dasar Percukaian]

Fax
03-83137811
Telephone
03-83138888
Website
https://www.hasil.gov.my/en/legislation/guidelines/
Last modified
20 June 2023
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