Malaysia legislation
Section 8
Section 8
New section 34B
The principal Act is amended by inserting, immediately after section 34A, the following new section 34B:
“Special deduction for contribution to an approved research institute or payment for use of services of an approved research institute or company 34B. (1) Subject to this section, in ascertaining the adjusted income of a person from a business for this basis period for a year of assessment, a deduction shall be made, as specified in subsection (3), from the gross income from the business for that period in respect of expenditure, not being capital expenditure, incurred by that person during that period in respect of—
(a)
contribution in cash to an approved research institute;
or
(b)
payment for the use of the services of an approved research institute or an approved research company.
(2)
The amount of deduction to be made under subsection
(1)
shall be twice the amount of expenditure, not being capital expenditure, referred to in that subsection.
(3)
Where any deduction in respect of expenditure referred to in subsection (1) is made under this section, no deduction in respect of that expenditure shall be made under section 33, 34 or 34A.
(4)
In this section—
(a)
an “approved research institute” means an institute, including a company licensed under section 24 of the Companies Act 1965 [Act 125], approved by the
Minister to wholly carry on research in an industry specified in the approval and to commercially exploit the benefit of such research thereof;
(b)
an “approved research company” means a company, other than a company licensed under section 24 of the Companies Act 1965, approved by the Minister to wholly carry on research in an industry specified in the approval and to commercially exploit the benefit of such research thereof.”.
10
Amendment of section 39