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Tax incentive for e-Commerce website

By: Jesson Yew - 2018-12-20


Malaysia offers a wide range of tax incentive and one of them being in the category of Information and Communication technology. It is stated that costs that are incurred on development of an e-Commerce website for a business are given an annual deduction of 20% for a period 5 years.

According to the book by Veerinder, Veerinder on Taxation, Volume 2, the income tax (Deduction for Cost of Developing Website) Rules 2003. He stated that from year of assessment 2002, resident person who has incurred the cost of developing website (which is electronic commerce enabled) to obtain 20% annual deduction (in arriving at adjusted income) over five years.

Electronic enabled means a system of processes where transactions involving the transfer of information, products, services or payment can be made through electronic networks for an electronically confirmed consideration as verified by the Malaysian Communication and Multimedia Commission. It won't apply to regular homepage which were merely offering information.

I do not own a copy of the book by Veerinder, you can search for it in Google Play Book. No eBook version available at the time of this post.

You may get more information and the application form via the link below:
https://www.mcmc.gov.my/media/announcements/notice-deduction-for-cost-of-developing-website