Invest in Malaysia

Incentives for Investment

13. Incentives for Information and Communication Technology (ICT)

13.1 Incentives for the Use of ICT

(i) Accelerated Capital Allowance

Companies are eligible for Accelerated Capital Allowance (ACA) that provides an initial allowance of 20% and an annual allowance of 40% for expenditure incurred in acquiring computers and information technology assets, including software. Effective for the Year of Assessment 2009 to the Year of Assessment 2013, the period to claim ACA on expenses incurred on ICT equipment including computer and software is accelerated from two years to one year.

The cost of developing websites is allowed as an annual deduction of 20% for a period of five years.

Claims should be submitted to the IRB.

(ii) Deduction of Operating Expenditure

Companies enjoy a single deduction of operating expenditure including payments to consultants related to IT usage for improving management and production processes.

Claims should be submitted to IRB.

(iii) Tax Exemption on the Value of Increased Exports

Companies in the ICT sector can apply for a tax exemption on their statutory income equivalent to 50% of the value of increased exports.

Claims should be submitted to IRB.