Double Tax Deduction on Hiring Interns

01Background of MySIP

The National Structured Internship Programme (MySIP) is developed to encourage companies to provide meaningful practical learning experiences through approved structured internships module for students.

As an employer who hires Malaysian full-time students from local IPTA or IPTS including higher learning institutions abroad and TVET institutions to undergo a structured internship programme endorsed by us, you will be eligible for a double tax deduction incentive for related expenses incurred on the interns throughout the programme.

02Key Takeaways

Taxpayers can claim the Structured Internship Programme(SIP) for YA2023 – YA2025 after receiving approval from Talent Corporation Malaysia Berhad.

However, the application portal to apply for SIP will only open at the beginning of January 2024.

In order to qualify for the double deductions, you shall obtain the approval letter from Talent Corporation Malaysia Berhad confirming that the internship programme conducted an approved internship programme.

Effective date:

From the year of assessment 2022 until the year of assessment 2025

PU Order

• P.U(A) 188 Income Tax (Deduction for expenditure incurred for the provision of approved internship programme) (amendment) rules 2023 made: 26.05.2023https://lom.agc.gov.my/.../outputp/1828756/PUA%20188.pdf
• P.U (A) 398 Income Tax (Deduction for expenditure incurred for the provision of approved internship programme) rules 2019 made: 30.12.2019https://lom.agc.gov.my/.../outputp/pua_20191231_PUA398.pdf

03Terms and conditions of MySIP

To qualify for the MySIP incentive, your organisation must fulfil the following criteria:

• Provide a minimum internship period of ten (10) weeks
• Pay a minimum monthly allowance of RM600 for master’s degree, bachelor’s degree and Professional Certificate or equivalent
• Pay a minimum monthly allowance of RM500 for diploma/Malaysian Skills Certificate (SKM) Level 1 to Level 5 or equivalent
• Provide an internship framework that includes practical experience and emphasizes on the development of specific knowledge or skills for students and approved by TalentCorp
• Registered with the Companies Commission of Malaysia (SSM)
• Complete your MySIP registration at www.mynext.my

Contact TalentCorp

For more information on the MySIP or to get in touch with the team, you can write to: sip@talentcorp.com.my

Past KTP Blog on the MySIP

Below is the link KTP Blog for the double tax deduction on hiring interns posting: -

• Structured internship Programme TalentCorp - No Gazette Order dated 17.02.2023https://rb.gy/xp29f
• Structured internship Programme TalentCorp dated 18.10.2022https://rb.gy/fpfux
• A Government Program to Help You Get Interns with Double Tax Deduction dated on 5.10.2020
• https://shorturl.at/mox03

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