INCOME TAX ACT 1967 (ACT 53) PART III - ASCERTAINMENT OF CHARGEABLE INCOME Chapter 4- Adjusted income and adjusted loss
Section 34B. Special deduction for contribution to an approved research institute or payment for use of services of an approved research institute or company.
[Ins. Act 451:s.8]
(1) Subject to this section, in ascertaining the adjusted income of a person from a business for the basis period for a year of assessment, a deduction shall be made, as specified in subsection (2), from the gross income from the business for that period in respect of expenditure, not being capital expenditure, incurred by that person during that period in respect of-
[Am. Act 531:s.6]
(a) contribution in cash to an approved research institute;
(b) payment for the use of the services of an approved research institute or an approved research company; or
(c) payment for the use of the services of a research and development company or a contract research and development company.
[Ins. Act 531:s.6]
(2) The amount of deduction to be made under subsection (1) shall be twice the amount of expenditure, not being capital expenditure, referred to in that subsection:
Provided that no deduction in respect of that expenditure shall be made under this section to a person being a related company of a research and development company which has been given approval under subsection 27D(1) of the Promotion of Investments Act 1986 and whose period as prescribed under paragraph 29E(2)(b) of that Act has not ended.
[Ins. Act 531:s.6]
(3) Where any deduction in respect of expenditure referred to in subsection (1) is made under this section, no deduction in respect of that expenditure shall be made under section 33, 34 or 34A.
(4) In this section-
(a) an "approved research institute" means an institute, including a company licensed under section 24 of the Companies Act 1965, approved by the Minister to mainly carry on research in an industry specified in the approval and to commercially exploit the benefit of such research thereof;
[Am. Act 513:s.7]
(b) an "approved research company" means a company, other than a company licensed under section 24 of the Companies Act 1965, approved by the Minister to mainly carry on research in an industry specified in the approval and to commercially exploit the benefit of such research thereof;
[Am. Act 513:s.7]
(c) a "contract research and development company", a "related company" and a "research and development company" have the meaning assigned thereto in section 2 of the Promotion of Investments Act 1986.
