Business Expenses Tax Deductible Malaysia

Tax deduction on the cost of listing in bursa malaysia effective.

Business expenses tax deductible malaysia. Currently expenses incurred on secretarial and tax filing fees are given a tax deduction of up to rm5 000 and rm10 000 respectively for each year of assessment ya under the income tax deduction for expenses in relation to secretarial fee and tax filing fee rules 2014 p u. However there are specific deductions allowed such as incorporation expenses and recruitment expenses conditions apply. 7 2 the pre operational business expenses in connection with an approved business venture which qualify for deduction are a expenses which are directly attributable to the conduct of feasibility studies.

Technology based companies and smes seeking to raise capital through listing in the ace market or the leap market are eligible for tax deduction up to rm1 5 million. In general start up expenses incurred before the commencement of a trade profession or business are capital in nature as they were expended to put the person in a position to earn income. Tax deduction for secretarial and tax filing fees.

Deductible legal and professional expenses 1 5. A the company is resident in malaysia and b the business venture has been approved by the minister of finance. These tax incentives appear in various forms such as exemption on income extra allowances on capital expenditure incurred double deduction of expenses special deduction of expenses preferential tax treatments for promoted sectors exemption of import duty and excise duty etc.

All supporting documents like business records cp30 and receipts need not be submitted with form p. Years of assessment 2020 to 2022 this is good news for technology based companies and smes. It s announced yearly in the national budget and changes slightly every year.

General principle 1 4. Keep all business records supporting documents for deductions reliefs and rebate for a period of 7 years. 6 julai 2006 ii contents page 1.

For a full list of these deductible expenses check out pwc s malaysian tax and business booklet. Relevant provisions of the law 2 1 this pr takes into account laws which are in force as at the date this pr is published. A the tax treatment of entertainment expense as a deduction against gross income of a business.