Malaysia gazettes tax deduction on Stock Market Listing Expenses for technology based companies

The MoF recently gazetted P.U.(A) 235/2023 (“the Rules”) on the tax deduction of up to MYR 1.5 million on expenses incurred by technology-based companies in relation to listing on the: (i) Main Market; (ii) Access, Certainty, Efficiency (“ACE”) Market; and (iii) Leading Entrepreneur Accelerator Platform (“LEAP”) Market of Bursa Malaysia Securities Berhad (“Bursa”) from YA 2023 to 2025. 
The Rules shall apply to technology-based companies which:
  • are involved in the design, development and manufacture, production or application in any of the fields and activities as specified in the Schedule; 
  • certified by Bursa Malaysia Securities Berhad as the principal business activity of the technology based company; and
  • have applied for listing on the Main Market, ACE Market and LEAP Market.
Technology-based companies that are listed on the Main Market, ACE Market or LEAP Market may claim a deduction of up to MYR 1.5 million for the basis period in a YA on the following expenditures incurred:
  • Payment fees to Bursa and Securities Commission Malaysia as the authorities;
  • Payment for the following professional fees: 
  1. Advisory fee to the principal adviser, the sponsor and the approved adviser in relation to the listing; 
  2. Fee in relation to the listing exercise, fees to the solicitor, company secretary, tax adviser, reporting accountant, auditor, valuer, independent market researcher, issuing house and share registrar; and 
  3. Payment of fees for underwriting, placement and brokerage services. 
  • The deduction must not exceed the adjusted income of the technology-based company for that basis period in the YA. The adjusted income must be ascertained before applying for such deduction.
  • Any excess deduction cannot be carried forward to the subsequent YA. 

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