SPECIAL DEDUCTION

 

Expenditure specifically allowed as a deduction under S34(6) of ITA 1967.

Refer to Appendix D of Form C 2008 Explanatory Notes/Guidebook for further details on the scope and source of deductibility.

List below expenses entitled for special deduction:

1. Equipment for disabled employees; or expenditure on the alteration or renovation of premises for the benefit of disabled employees (Amended with effect from Year of Assessment 2008)

2. Translation into or publication in the national language of books approved by Dewan Bahasa dan Pustaka

3. Provision of library facilities or contributions to libraries not exceeding RM100,000

4. Provision of services, public amenities and contributions to approved charity/community projects pertaining to education, health, housing infrastructure, information and communication technology

5. Revenue expenditure on the provision and maintenance of child care centre for employees’ benefit

6. Establishment and management of approved musical or cultural groups

7. Expenditure incurred in sponsoring any approved local and foreign arts, cultural or heritage activity:
– not exceeding RM500,000 in aggregate
– not exceeding RM200,000 for sponsoring foreign arts, cultural or heritage activity

8. Provision of scholarship to a student receiving full-time instruction leading to an award of diploma/degree (including Masters/Doctorate)

9. Capital expenditure incurred in obtaining accreditation for a laboratory or as a certification body

10. Revenue expenditure on scientific research directly undertaken and related to the business

11. Incorporation expenses

12. Cost of acquisition of proprietary rights

13. Corporate debt restructuring expenditure

14. Information technology-related expenditure

15. Pre-commencement of business training expenses incurred within one year prior to the commencement of business

16. Contribution to an approved benevolent fund/trust account in respect of individuals suffering from serious diseases

17. Provision of practical training in Malaysia to resident individuals who are not own employees

18. Promotion of exports - registration of patents, trademarks and product licensing overseas

19. Implementation of RosettaNet

20. Investment in a venture company

21. Deduction for gifts of new personal computers to employees (Year of Assessment 2001 - 2003)

Deduction for gifts of new personal computer and monthly broadband subscription fee to employees (Year of Assessment 2008 - 2010)

22. Cost of developing website

23. Investment in an approved food production project

24. Cost on acquisition of a foreign owned company

25. Investment in a project of commercialisation of research and development findings

26. Promotion of exports - hotel accomodation and sustenance provided to potential importers

27. Expenditure on issuance of Islamic securities

28. Expenditure on issuance of asset backed securities

29. Expenditure on issuance of Islamic securities pursuant to Istisna’ principle

30. Cash contribution and sponsor of a cultural or arts show held in Federal Territory Kuala Lumpur

31. Investment in an approved food production project

32. Audit expenditure

33. Expenditure incurred for the development and compliance of new courses by private higher education institutions

34. Expenditure for establishment of an Islamic stock broking business

35. Expenditure incurred for participating in international standardization activities approved by the Department of Standards Malaysia

36. Expenditure incurred on the provision of infrastructure in relation to its business which is available for public use, subject to the prior approval of the Minister

37. Deduction for investment in a Bionexus status company 

38. Deduction for cost of spectrum assignment

39. Deduction for cost of obtaining Chain of Custody Certification from Malaysian Timber Certification Council