# Double and Further Deduction Directory — Gazetted Income Tax Rules

> Every double or further deduction we could confirm against its gazetted instrument — incentive, P.U.(A) number, qualifying expenditure, cap and current status.

- Category: taxation
- Language: en
- Status: published
- Updated: 2026-07-20
- Canonical: https://negaraku.md/en/taxation/double-deduction-list

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Nobody publishes this as a list, and that is why claims go wrong. A finance
manager reads a firm alert saying *flexible work arrangements get a double
deduction*, claims 200%, and is wrong — since year of assessment 2025 the
gazetted rule gives an **extra 50%**, not an extra 100%.

Double deduction in Malaysia is never a general principle. It exists only where
the Income Tax Act 1967 says so, or where the Minister has gazetted Rules under
**s.154(1)(b) read with s.33(1)(d)**. Everything below was read off the gazetted
instrument.

## How to read a deduction order in ten seconds

Skip the title — it tells you nothing. Go to the amount subrule and look for one
of three phrases.

| Drafting | Effect |
| --- | --- |
| “twice the amount of expenses allowed under these Rules” | 200% total |
| “shall be in addition to any deduction under section 33” | 200% total, expressed the other way |
| “equivalent to fifty per cent … in addition to any deduction under section 33” | 150% total |
| Neither phrase | Single deduction only — usually unlocking an item s.33 would otherwise block |

Most instruments titled *Income Tax (Deduction for …) Rules* fall in the last
row. They are not double deductions.

One caveat before you apply this mechanically: "200% total" is the *uncapped*
reading. Where the same order sets a cap on the further deduction — as the
employee-accommodation order does at RM50,000 per company — the second
deduction is limited to that cap, so the total is s.33 plus the capped amount,
not a clean doubling. Read the amount subrule and the cap together.

## Statutory double deductions in the Act itself

| Provision | Expenditure | Amount | Notes |
| --- | --- | --- | --- |
| s.34A | Research and development approved by the Minister | Twice the revenue expenditure | Overseas R&D above 30% of total R&D drops the claim back to single. No s.33 or s.34 deduction for the same spend |
| s.34B | Cash contribution to an approved research institute; payment for the services of an approved research institute, approved research company, R&D company or contract R&D company | Twice the revenue expenditure | Denied to a related company of an R&D company still inside its PIA s.27D approval window |
| s.34(6)(ma) | Obtaining certification for recognised quality systems and standards, and halal certification | Twice the revenue expenditure | Deemed incurred in the basis period the certificate is issued, not when paid |

## Gazetted double and further deductions

Confirmed against the gazette text. Status is as at the date on this page.

| Incentive | Instrument | Qualifying expenditure | Amount and cap | Window / status |
| --- | --- | --- | --- | --- |
| Scholarship to Malaysian students (TVET certificate, diploma, degree, professional certificate) | P.U.(A) 252/2026 | Sponsorship expenses under a scholarship agreement | Twice | From YA2026 |
| Scholarship (TVET to PhD levels) | P.U.(A) 49/2022 | Sponsorship expenses | Twice | From YA2022 |
| Scholarship, engineering and technology fields | P.U.(A) 468/2021 | Sponsorship expenses | Twice | Deemed from YA2019 |
| Scholarship, TVET certificate level | P.U.(A) 503/2021 | Sponsorship expenses | Twice | Deemed from YA2015 |
| Scholarship, higher-education student | P.U.(A) 228/2012 | Sponsorship expenses | Twice | YA2011–YA2016, lapsed |
| Vendor Development Programme | P.U.(A) 2/2022 | Anchor-company expenditure on the programme | Twice, capped RM500,000 per YA | From YA2021 |
| Industry4WRD Vendor Development Programme | P.U.(A) 172/2022 | Anchor-company expenditure | Twice, capped RM1,000,000 per YA | Deemed from YA2019 |
| Vendor Development Programme (earlier) | P.U.(A) 169/2014 | Anchor-company expenditure | Twice | From YA2014 |
| Approved internship programme | P.U.(A) 398/2019 | Internship expenditure, TalentCorp-approved | Twice, capped RM5,000 per student per YA | YA2015–YA2021, lapsed |
| Child care centre for employees | P.U.(A) 15/2013 | Provision and maintenance of a centre registered under the Child Care Centre Act 1984, and child care allowance | In addition to s.33 | From YA2013, no stated end |
| Employees accommodation | P.U.(A) 470/2021 | Rental of premises used as employee accommodation | In addition to s.33, capped RM50,000 per company | From YA2021 |
| Employment of senior citizens, ex-convicts, parolees, supervised persons, ex-drug dependants | P.U.(A) 164/2019, extended by P.U.(A) 47/2021 | Remuneration of a Malaysian citizen resident employee, full time, wage not exceeding RM4,000 | In addition to s.33 | YA2019–YA2025, now lapsed |
| COVID-19 detection tests for employees | P.U.(A) 404/2021 | Cost of testing | In addition to s.33 | From YA2021 |
| Freight charges, Sabah or Sarawak to Peninsular Malaysia | P.U.(A) 50/2000, revised edition P.U.(A) 383/2025 | Freight charges on rattan and wood-based products, excluding sawn timber and veneer | Further deduction, in addition to s.33 | In force; revised edition effective 30 October 2025 |
| Promotion of international or private schools | P.U.(A) 110/2012 | Overseas education fairs and listed promotion expenses | Additional to s.33, capped RM100,000 per YA for overseas fairs | From YA2012 |
| Participation in an approved career fair | P.U.(A) 129/2012 | Participation expenditure | Additional to s.33 | YA2012–YA2016, lapsed |
| Interest and incidental cost of a loan to revive an abandoned housing project | P.U.(A) 89/2013 | Interest and incidental cost | Twice | Loans approved 1 Jan 2013 – 31 Dec 2015 |
| Consultation and training for flexible work arrangements | P.U.(A) 134/2015 | Consultation and training costs | Twice | Deemed from YA2014 |
| Flexible work arrangements | P.U.(A) 377/2021 | Capacity development, training, software | Twice, capped RM500,000 per YA, three consecutive YAs | Deemed from YA2020 |
| **Flexible work arrangements (current)** | **P.U.(A) 225/2026** | Capacity development, training, software | **Extra 50% only**, capped RM500,000, once | From YA2025; TalentCorp application 1 Jan 2025 – 31 Dec 2027 |
| Issuance of retail debenture and retail sukuk | P.U.(A) 117/2019 | The *additional* expenses of a retail issue | Twice the additional expenses | YA2019–YA2020, lapsed |
| Sukuk and retail sukuk structured on wakalah | P.U.(A) 5/2021 | Issuance expenditure plus additional retail expenses | Expenditure, plus twice the additional expenses | YA2021–YA2025 |

The three flexible-work rules are mutually exclusive. Rule 3 of P.U.(A) 225/2026
disapplies it to any employer that has claimed under P.U.(A) 134/2015 or
P.U.(A) 377/2021 in the same basis period.

## Single deductions people mistake for double deductions

| Instrument | What it actually does |
| --- | --- |
| P.U.(A) 232/2026 — rental of electric motor vehicles | Allows EV lease rentals up to an aggregate RM300,000 per vehicle, YA2023–YA2027. Claiming it blocks any claim under s.39(1)(k) or Schedule 3 |
| P.U.(A) 31/2021 — smartphone, tablet or personal computer given to an employee | One-off single deduction, YA2020 only |
| P.U.(A) 269/2021 — personal protective equipment | Single deduction from 1 March 2020; blocked if capital allowances were claimed on the same item |
| P.U.(A) 222/2026 — handicraft purchases by rated hotels | Single deduction capped RM150,000 per YA, deemed in force from 1 January 2023 |
| P.U.(A) 162/2026 and 163/2026 — e-Invoice ICT equipment and customised software | Accelerated capital allowance, not a deduction at all |
| P.U.(A) 375/2018 — payments to a Labuan company | The opposite: a deduction *restriction* |

## Common mistakes

**Claiming an expired incentive.** Windows are written into subrule 1(2) of each
instrument and are easy to miss. The senior-citizen and ex-convict hiring
deduction ran only to YA2025. The approved internship deduction ended at YA2021.

**Assuming a firm alert reflects the current order.** The flexible work
arrangement deduction was halved when P.U.(A) 225/2026 replaced the 2021 rules,
and most commentary still describes the old 200%.

**Double-claiming the same ringgit.** Nearly every instrument carries a
non-application rule — s.34A(5), s.34B(3), rule 2(5) of P.U.(A) 232/2026,
rule 4 of P.U.(A) 269/2021. Claim under the incentive *or* under s.33 and
Schedule 3, never both.

**Treating the deduction as pre-approved.** Almost none of these need LHDN
approval. Several need someone else's certification — TalentCorp for internships
and flexible work, MIDA or a ministry agency for vendor programmes, the
Department of Social Welfare for a child care centre. Without that certificate
the claim fails on audit even where the expenditure is genuine.

**Ignoring the reasonableness override.** Most orders let the Director General
disallow anything above what would reasonably be expected in the ordinary course
of business. Inflating a related-party training fee to double it is the fastest
way to lose the whole claim.

## What's next

Check every incentive you claim against the gazetted instrument each year, not
against last year's working paper. Where an order has lapsed, the underlying
expense normally remains deductible once under s.33 — you lose the bonus, not
the expense.

## Sources

- Income Tax Act 1967 (Act 53), reprint as at 21 May 2024 — ss.34(6)(ma), 34A, 34B, 154(1)(b) — https://www.hasil.gov.my/wp-content/uploads/20240521-akta-cukai-pendapatan-1967-akta-53.pdf (LHDN)
- Income Tax (Deduction for the Costs of Implementation of Flexible Work Arrangements) Rules 2026, P.U.(A) 225/2026 — https://lom.agc.gov.my/ilims/upload/portal/akta/outputp/3558499/PUA%20225%20%282026%29.pdf (Attorney General's Chambers)
- Income Tax (Deduction for the Sponsorship of Scholarship …) Rules 2026, P.U.(A) 252/2026 — https://lom.agc.gov.my/ilims/upload/portal/akta/outputp/3583810/PUA%20252_2026.pdf (Attorney General's Chambers)
- Income Tax (Deduction for Expenditure in relation to Industry4WRD Vendor Development Programme) Rules 2022, P.U.(A) 172/2022 — https://lom.agc.gov.my/ilims/upload/portal/akta/outputp/1733053/PUA%20172%20%282022%29.pdf (Attorney General's Chambers)
- Income Tax (Deduction for Employment of Senior Citizen, Ex-Convict, Parolee, Supervised Person and Ex-Drug Dependant) Rules 2019, P.U.(A) 164/2019 — https://lom.agc.gov.my/ilims/upload/portal/akta/outputp/pua_20190611_PUA164_2019.pdf (Attorney General's Chambers)
- Income Tax (Deduction for Freight Charges from Sabah or Sarawak to Peninsular Malaysia) Rules 2000, revised edition P.U.(A) 383/2025 — https://lom.agc.gov.my/ilims/upload/portal/akta/outputp/3162981/PUA383_2025.pdf (Attorney General's Chambers)
- Income Tax (Deduction for Expenditure on Provision of Employees Accommodation) Rules 2021, P.U.(A) 470/2021 — https://lom.agc.gov.my/ilims/upload/portal/akta/outputp/1718705/PUA%20470.pdf (Attorney General's Chambers)
- Income Tax (Deduction for Rental Payments) (Electric Motor Vehicles) Rules 2026, P.U.(A) 232/2026 — https://lom.agc.gov.my/ilims/upload/portal/akta/outputp/3571327/PUA%20232%20%282026%29.pdf (Attorney General's Chambers)

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