Gift to customer can get tax deduction?

Today we are going to cover a common asked question from our clients on the 𝐠𝐢𝐟𝐭 𝐭𝐨 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫

Let's explain as below :

S𝗰𝗲𝗻𝗮𝗿𝗶𝗼 𝟭:
Sponsor of gift without company’s logo

The sponsor is allowed for 50% deduction because the expenses does not fall within any of the specified categories in provisos (i) to (viii) of paragraph 39(1)(I) of ITA 1967. [Public Ruling 4/2015, paragraph 8]

Public Ruling 4/2015: Entertainment expenses
“8. Entertainment Expense which Qualifies for a Fifty Percent (50%) Deduction
Entertainment expenditure which is wholly and exclusively incurred in the production of gross income under subsection

33(1) of the ITA but do not fall within any of the categories of entertainment expenses specified in provisos (i) to (viii) to paragraph 39(1)(l) of the ITA only qualifies for a fifty percent (50%) deduction against gross income.”

𝗦𝗰𝗲𝗻𝗮𝗿𝗶𝗼 𝟮
Sponsor of gift with company’s logo

Yes, the sponsor is allowed a 100% deduction. This is because the provision of gifts falls within Proviso (vi) of paragraph 39(1)(I) of ITA 1967. [Public Ruling 4/2015, paragraph 7.6]

Public Ruling 4/2015: Entertainment expenses
“7.6 The provision of promotional gifts within Malaysia of articles incorporating the logo of the business - proviso (vi) to paragraph 39(1)(l) of the ITA

#ktp
#thk
#entertainment
#gift
#youaskianswer

This message was brought to you by KTP.