Tax Incentives through Accreditation Services  

The Government has introduced tax incentives through accreditation services in the form of tax deductions for conformity assessment bodies such as laboratories, certification bodies and inspection bodies that are accredited by the Department of Standards Malaysia (JSM). In addition, companies that  hold standard quality certifications or Halal certification are also eligible to enjoy these tax deductions. 

These tax incentives are provided for under the Guidelines on Deduction of Expenditure under Paragraphs 34(6)(m) and 34(6)(ma) of the Income Tax Act 1967 for the purposes of income tax computation, as most recently issued by the Inland Revenue Board of Malaysia (LHDNM) on 30 December 2025. The latest Guidelines include the Anti-Bribery Management System (ABMS) certification programme based on MS ISO 37001 under the Accreditation Scheme for Certification Bodies (ACB).  

The Guidelines set out the eligibility criteria, allowable expenses and the computation of income tax  in respect of expenditure incurred to obtain:  

(i) an accreditation certificate issued by JSM; and  

(ii) certificates of conformity for quality management systems and standards, as well as Halal  certificates, issued by Certification Bodies accredited by JSM.  

Under paragraph 34(6)(ma) of the Income Tax Act 1967, companies are eligible to claim a double deduction on expenditure incurred for the purpose of obtaining certification for quality management systems, standards and Halal from Certification Bodies accredited by JSM, as determined by the Minister of Finance.  

Under paragraph 34(6)(m) of the Income Tax Act 1967, companies are eligible to claim a single tax deduction on expenditure incurred to obtain accreditation from JSM.  

Claims for tax deductions must be made in the Income Tax Return Form for the relevant year of assessment and supported by the relevant certificates obtained from JSM or Certification Bodies accredited by JSM. Companies are required to properly retain the certificates and related documents, such as payment receipts, as evidence to support their tax deduction claims declared to the LHDNM.