Manufacturers producing for the export market are eligible to apply for the following:
Double Deduction for Expenses on Promotion of Export
Certain expenses incurred by resident companies for the purpose of seeking opportunities for export of manufactured products, services products and agricultural products are eligible for double deduction. (A list of the eligible expenses is available from MITI).
Some expenses eligible are:
a. overseas advertising
b. supply of samples abroad, including delivery costs
c. export market research
d. preparation of tenders for the supply of goods overseas
e. supply of technical information abroad
f. exhibits and/or participation required in trade or industrial exhibitions held locally or abroad approved by the Ministry of International Trade and Industry
g. economy class airfares in respect of travel overseas by employees of companies for business
h. accommodation expenses up to RM300 per day and sustenance expenses up to RM150 per day for company representatives who travel overseas for promotion of services for export
i. expenses for services rendered for public relations work connected with export
j. cost of maintaining sales office and warehouse overseas for the promotion of exports
l. professional service fees for designing the package of products for export subject to the conditions that the product is of export quality and the company uses local professional services
m. participation in virtual trade show
n. participation in trade portal for the promotion of local products
o. social media marketing
Tax Exemption on the Value of Increased Exports
To further promote exports, manufacturing companies in Malaysia are eligible for:
- Tax exemption of statutory income equivalent to 10% of the value of increased exports provided that the goods exported attain at least 30% value-added.
- Tax exemption of statutory income equivalent to 15% of the value of increased exports provided that the goods exported attain at least 50% of value-added.
Claims should be submitted to IRB.
To further encourage the export of Malaysian goods, a locally-owned manufacturing company with Malaysian equity of at least 60% is eligible for:
- A tax exemption on the statutory income equivalent to 30% of the value of increased exports, provided the company achieves a significant increase in exports;
- A tax exemption on the statutory income equivalent to 50% of the value of increased exports, provided the company succeeds in penetrating new markets;
- A full tax exemption on the value of increased exports, provided the company achieves the highest increase in export in its category.