Double Tax Deduction on Hiring Interns
Double Tax Deduction on Hiring Interns
Background 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.
Key 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: 26.05.2023
https://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: 30.12.2019
https://lom.agc.gov.my/.../outputp/pua_20191231_PUA398.pdf
Terms 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 17.02.2023
https://rb.gy/xp29f
Structured internship Programme TalentCorp dated 18.10.2022
https://rb.gy/fpfux
A Government Program to Help You Get Interns with Double Tax Deduction dated on 5.10.2020
https://shorturl.at/mox03
Visit Us
Wisma KTP, 53 Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
Wisma THK, 41, Jalan Molek 1/8, Taman Molek, 81100 Johor Bahru
KTP (Audit, Tax, Advisory)
An approved audit firm and licensed tax firm operating under the KTP group based in Johor Bahru providing audit, tax planning, advisory and compliance services to clients
Website www.ktp.com.my
Instagram https://bit.ly/3jZuZuI
Linkedin https://bit.ly/3sapf4l
Telegram http://bit.ly/3ptmlpn
THK (Secretarial, Bookkeeping, Payroll, Advisory)
A licensed secretarial firm in Johor Bahru providing fast reliable incorporation, secretarial services, corporate compliance services, outsourcing bookkeeping, and payroll services to clients
Website www.thks.com.my
Facebook https://bit.ly/3nQ98rs
KTP Lifestyle
An internal community for our colleagues on work and leisure.
Tiktok http://bit.ly/3u9LR6Q
Youtube http://bit.ly/3ppmjyE
Facebook http://bit.ly/3ateoMz
Instagram https://bit.ly/3jZpKLo
KTP Career
An external job community on vacancies in Johor Bahru for interns, graduates & experienced candidates.
Instagram https://bit.ly/3u2PxHg
Facebook http://bit.ly/3rPxz9o