Income Tax (Deduction for Expenditure on Registration of Patent and Trade Mark) Rules 2009 [P.U. (A) 418/2009]

First published on 18 January 2010

From the year of assessment of 2010 until the year of assessment of 2014, certain companies and enterprises are able to claim tax deduction for fees or payments made to register patents and/or to register trade marks under the Malaysian Patents Act 1983 and Malaysian Trade Marks Act 1976 respectively.

The companies and enterprises that are eligible for such deduction are as follows:

(a) A company which has a paid-up capital in respect of ordinary share of RM2.5 million and less at the beginning of the basic period for a year of assessment but shall not include:

(i) A company where 50% of its paid up capital in respect of ordinary share of the company is directly or indirectly owned by a related company;

(ii) A company where 50% of the paid-up capital in respect of ordinary shares of a related company is directly or indirectly owned by the first mentioned company; and

(iii) A company where 50% of the paid-up capital in respect of ordinary shares of a company and a related company is directly or indirectly owned by another company.

(b) An enterprise in the manufacturing industry, manufacturing related services industry and agro-based industry, resident in Malaysia, which at the end of the basis period for a year of assessment-

(i) has not more than 150 full-time employees; or
(ii) has achieved annual sales of not more than RM25 million ringgit.

(c) An enterprise in the services industries, primary agriculture, information and communications technology industry, resident in Malaysia, which at the end of the basis period for a year of assessment:

(i) has not more than 50 full-time employees; or
(ii) has achieved annual sales of not more than RM5 million.

Download: [ Income Tax (Deduction for Expenditure on Registration of Patent and Trade Mark) Rules 2009]

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