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Incentives for Information and Communication Technology (ICT)

Update Date:2018-4-27 17:46:30     Source:www.3737580.com     Views:851

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Information and Communications Technology (ICT) has become an important sector in Malaysia’s economic development since the Government incorporated it in one of the strategies towards creating an industrial-based economy (Second Outline Perspective Plan 1991-2000) and then a knowledge-based economy (Third Outline Perspective Plan 2001-2010). Currently, ICT has become the strategic enabler and key driver of attract more people to invest in Malaysia.

 

In line with the strong growth & vast experience gained in electronics industry, Malaysia created Multimedia Super Corridor in 1996 as the nucleus for the growth of ICT and technology-based industries. From the role as manufacturer & exporter of ICT products, Malaysia moves higher in the industry value chain as provider & exporter of ICT services, and making significant inroads to overseas markets. The government provides incentives scheme for those who involves in ICT Industry.

 

Incentives for Information and Communication Technology (ICT)

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.


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.


Benefits: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.

 

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