Suggest a correction

Schedule

KAEDAH-KAEDAH CUKAI PENDAPATAN (POTONGAN BAGI PERBELANJAAN BERHUBUNG DENGAN PEMBELIAN KELUARAN KRAF TANGAN) 2026

Match the official source exactly.

What needs fixing?

Wrong or mistyped textWrong structure or numberingWrong title or detailsDuplicated content

Proposed text

Jadual 3 kepada Akta.

Dibuat 7 Mei 2026
[Perb. MOF.TAX(S)700-2/7/991; LHDN.AY.A 600-12/1/7 (29)-404; PN(PU2)80/JLD.116]

DATUK SERI AMIR HAMZAH AZIZAN
Menteri Kewangan II

[Akan dibentangkan di Dewan Rakyat menurut subseksyen 154(2) Akta Cukai Pendapatan 1967]

P.U. (A) 222 6
INCOME TAX ACT 1967

INCOME TAX (DEDUCTION FOR EXPENDITURE
IN RELATION TO PURCHASE OF HANDICRAFT PRODUCT) RULES 2026

IN exercise of the powers conferred by paragraph 154(1)(b)
of the
Income Tax Act 1967 [Act 53] read together with paragraph 33(1)(d) of the Act, the Minister makes the following rules:

Citation and commencement 1.
(1)
These rules may be cited as the Income Tax (Deduction for
Expenditure in relation to Purchase of Handicraft Product) Rules 2026.

(2)
These Rules are deemed to have come into operation on 1 January 2023.

Interpretation 2.
In these Rules—

“qualifying expenditure” means an expenditure incurred by the qualifying company as provided in rule 5;

“handicraft products” means—

(a)
a hand-woven songket decorative product;

(b)
a pottery decorative product;

(d)
a screwpine based decorative product;

(e)
a batik decorative product;

(f)
a wood or bamboo based decorative product excluding furniture; and

P.U. (A) 222 7
(g)
a pewter decorative product;

“qualifying company” means a company as provided in rule 4.

Deduction 3.
(1)
For the purpose of ascertaining the adjusted income of a qualifying company from a hotel business in a basis period for a year of assessment, a deduction shall be allowed for an amount equivalent to the amount of qualifying expenditure incurred by the qualifying company in the basis period for the year of assessment.

(2)
The amount of deduction referred to in subrule (1) shall not exceed one hundred fifty thousand ringgit for each year of assessment.

Qualifying company 4.
A qualifying company referred to in these Rules is a company which—

(a)
is incorporated under the Companies Act 2016 [Act 777] and resident in Malaysia;

(b)
is carrying on a hotel business; and

(c)
the hotel is registered with the Ministry charged with the responsibility for tourism under the Tourism Industry Act 1992 [Act 482] and has been rated as one star to five stars.

Qualifying expenditure 5.
(1)
A qualifying expenditure referred to in these Rules is an expenditure incurred by the qualifying company for purchasing Malaysian made handicraft products from a person who is registered with the Perbadanan Kemajuan Kraftangan Malaysia under the Perbadanan Kemajuan Kraftangan Malaysia Act 1979 [Act 222]
with the conditions that—

P.U. (A) 222 8
(a)
such purchased handicraft product is for the usage in the hotel premises of the qualifying company; and

(b)
the purchased of the handicraft product is made within the period from 1 January 2023 until 31 December 2025.

(2)
The qualifying expenditure referred to in subrule (1) shall not include the qualifying company’s expenditure for the purpose of—

(a)
payment of designer fees;

(b)
payment of professional fees; and

(3)
Where the qualifying company has qualifying expenditure which exceeds one hundred fifty thousand ringgit as provided in subrule 3(2) for a basis period for a year of assessment, the excess amount shall not be carried forward and deducted in ascertaining the adjusted income of the qualifying company for each subsequent years of assessment.

Non-application 6.
These Rules shall not apply to a qualifying company which has incurred qualifying expenditure if in the basis period for that year of assessment the qualifying company—

(a)
has been granted a deduction under subsection 33(1) of the Act in respect of the same qualifying expenditure; or

(b)
has claimed capital allowances for qualifying expenditure under Schedule 3 to the Act.

P.U. (A) 222 9
Made 7 May 2026
[Perb. MOF.TAX(S)700-2/7/991; LHDN.AY.A 600-12/1/7 (29)-404; PN(PU2)80/JLD.116]

DATUK SERI AMIR HAMZAH AZIZAN
Minister of Finance II

[To be laid before the Dewan Rakyat pursuant to subsection 154(2) of the Income Tax Act 1967]

What's the problem? (required)

Source link (optional)

Describe the problem (and edit the text or pick an issue type) to submit.

Suggestions are submitted anonymously. No account or personal information is required or sent.