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((Expenditure (Franchise Fee (Paid for the right to use (Trade secret,…
Expenditure
Approved Training
Double deduction for Manufacturing Company
Conditions
Employees are Malaysian citizens
Training program must be approved by Malaysian Industrial Development Authority (MIDA) OR conducted by training institution approved by the Minister of Finance
To train employees for the acquisition of crafts, supervisory or technical skills - contribute directly to future production products
Incurred during the period prior to business commencement
Claim must be supported by
Approval letter from MIDA
Letter from the approved training institution certifying programme details (including the amount paid) and employees' attendance
Companies that contribute to the Human
Resources Development Fund (HRDF) do not qualify for deduction
Franchise Fee
Definition
An one-off payment required to be paid by the franchisee to the franchisor
Paid for the right to use
Trade secret
Confidential information
A mark
Intellectual property or system
Non-refundable
Franchisor must wholly own the local franchise brand
Pre-Commencement Business
Training Expenses
Allowed for single deduction
Conditions
Training is to impart basic skills to enable company to commence business
Expense incurred within a year prior to business commencement
Training expense allowable under section 33 of the ITA 1967
Not qualify for deduction if
Receive training grants from the Government
Claim double deduction of training expenses
Expenses Relating to Employee Recruitment
Allowable expenses
The recruitment of employees to enable the person to commence his business
The kind allowable under section 33 of the ITA 1967 relating to the recruitment of employees
Incurred within the period of one year prior to the business commencement
Establishment Expenditure
Real Estate Investment Trust (REIT) or Property Trust Fund (PTF)
Allowable for deduction
Valuation fees
Consultation fees
Legal fees
Islamic Stock Broking Company
Allowable for deduction
Consultancy & legal fees
Cost of market research
Cost of feasibility study
Cost of obtaining license & business approval