Special provision under subsection 34(7) of the ITA (single deduction) for R&D expenditure

Incentive Category

Scope of Funding

Encourage companies to conduct in-house R&D activities or outsourced to an institute or company (no specific approval status from the relevant Minister)

Application Method

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.

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 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.

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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