Double Deduction For Promotion Of Malaysian Brands from MATRADE

Expenditure incurred on advertising local brand products domestically is allowed double deduction. To be eligible, the local brand must satisfy the following criteria :-

• Brand name is owned by a company which is locally incorporated with at least 70% Malaysian owned
• The brand name is registered in Malaysia or overseas
• The brand name product must achieve export quality standards
• Expenditure incurred in advertising must be incurred in Malaysia
• Expenditure incurred on professional fees must be incurred in Malaysia

Eligible expenses are:

• Advertisements on the internet where the host websites are located in Malaysia
• Advertisements in magazines and newspapers where the magazines and newspapers are printed in Malaysia
• Advertisements on locally licensed television stations
• Advertisements approved by the relevant local authority on the billboards which are located in Malaysia
• Advertisements in trade publications printed in Malaysia
• Advertisements in any form in the course of sponsoring an approved international sporting event held in Malaysia
• Advertisements in any form in the course of sponsoring an approved international trade conference or an approved international trade exhibition held in Malaysia. An approved letter to be obtained from MATRADE
• Professional fees paid to local companies to promote Malaysian brand names

As a continuous effort to promote Malaysian brand names, in the Budget 2007 it was announced that double deduction on expenses incurred on advertising Malaysian brand names is extended to a company within the same group that has incurred the advertising expenditure, subject to the following conditions:

i) The company must be owned more than 50% by the registered proprietor of the Malaysian brand name; and
ii) The deduction can only be claimed by one company in a year of assessment.