Tax Deduction for Quality Certification in Malaysia

Why It Matters

Obtaining certifications such as Halal, ISO, and Anti-Bribery Management System (ABMS) not only boosts business credibility but also provides tax savings under the Income Tax Act 1967. These deductions help Malaysian companies remain competitive globally while strengthening ESG compliance.

 

Types of Tax Deductions:

• Section 34(6)(m) – Single Deduction: For expenses related to accreditation of testing laboratories or certification bodies.

• Section 34(6)(ma) – Double Deduction: For expenses related to obtaining quality system and standards certificates, including Halal, ISO, and ABMS certifications.

 

Eligibility Criteria:

• Accreditation Certificates must be issued by the Department of Standards Malaysia (JSM).

• Halal Certificates must be issued by JAKIM, State Islamic Religious Departments, or State Islamic Religious Councils.

• Claims must be made in the basis period when the certificate is issued.

 

Allowable Expenses (Double Deduction)

• Application fees

• First-year annual fees

• Assessment fees

• Other fees charged by JSM or approved certification bodies

• Note: Consultancy fees, employee training, and travel costs are not deductible.

 

Key Takeaways

• Double your savings: Focus on Section 34(6)(ma) for Halal, ISO, and ABMS certifications.

• Timing is crucial: Claim in the year the certificate is issued, even if expenses span multiple years.

• Keep records: Certificates must be retained for audit purposes.