The Double Deduction tax incentive is a powerful tool designed by the Malaysian government to encourage businesses to invest in innovation, export expansion, and employee development. It allows companies to claim twice the amount of certain eligible expenses as deductions against their taxable income, effectively lowering their tax burden.
What Qualifies for Double Deduction?
- Research & Development (R&D): Costs related to developing new or improved products and processes.
- Export Promotion: Expenses for marketing and promoting products overseas.
- Employee Training: Investment in upskilling your workforce through courses and workshops.
How It Works
If your company spends RM 100,000 on these qualifying activities, you can deduct RM 200,000 from your taxable income. This reduces the amount of profit subject to tax, helping your business save money and reinvest in growth.
Why It Matters
This incentive motivates businesses to innovate, expand globally, and develop skilled employees, all while enjoying significant tax savings. To benefit, companies must keep proper documentation and often seek approval from relevant government bodies.
By leveraging the Double Deduction incentive, Malaysian companies can enhance competitiveness and accelerate growth in today’s dynamic market.