Accreditation

Faedah Cukai

Accreditation Section
 
To encourage more Certification Bodies (CBs) and Laboratories to support Standards Malaysia's accreditation schemes, the Government offers tax incentives in the form of tax deductions for the costs such as Assessment Fee, Annual Fee and other Fee imposed by Standards Malaysia. The tax deduction is applicable for all programmes operated by Standards Malaysia under its various accreditation schemes.
 
 
The new "Self-Assessment System" introduced by the Inland Revenue Board of Malaysia requires taxpayers to work out and pay their own income tax. The taxpayer is given the responsibility to compute his own tax liability. As such, Standards Malaysia accredited CBs and laboratories may deduct expenditure imposed by Standards Malaysia as mentioned above in ascertaining their adjusted income from a business. However, the CBs and laboratories are required to maintain copies of payment receipts and accredited certificates as a proof to their declaration and importantly to be made available during audits by the Inland Revenue Board of Malaysia.
 
 
Under paragraph 34(6)(ma), Income Tax Act 1967, companies are entitled to claim double deduction for expenditure incurred for the purposes of obtaining certification for recognised quality systems and standards from a certification body as determined by the Minister of Finance. They are also responsible in maintaining copies of accredited certificates and copies of payment receipts of the costs imposed by the Standards Malaysia accredited CB in obtaining certification for their system.
 
 
As per the paragraph 34(6)(m), Income Tax Act 1967:
 
"(m) an amount equal to the expenditure, not being capital expenditure, incurred by a company in the relevant period for the purpose of obtaining accreditation for a laboratory or as a certification body, as evidenced by a certificate issued by the Department of Standards Malaysia : Provided that the expenditure incurred in the relevant period shall be deemed to be incurred by that company in the basis period for the year of assessment in which the certificate is issued ; "(ma) an amount twice the amount of the expenditure, not being capital expenditure, incurred by a company in the relevant period for the purpose of obtaining certification for recognised quality systems and standards, and halal certification, evidenced by a certificate issued by a certification body as determined by the Minister: Provided that the expenditure incurred in the relevant period shall be deemed to be incurred by that company in the basis period for the year of assessment in which the certificate is issued.