Incentives for training

Related topics: | Investment Incentives |

Incentives for Training

In order to encourage human resource development, the following incentives are available:

Investment Tax Allowance

Investment Tax Allowance of 100% for a period of 10 years is given to companies which establish technical or vocational training institutions. This allowance will be abated from the statutory income. Abatement for each assessment year will be limited to 70% of the statutory income.

Existing companies providing technical or vocational training that incur new investment to upgrade their training equipment or expand their training capacities are also eligible for this incentive.

Applications for this incentive should be submitted to MIDA.

Deduction for Cash Contributions

Single deduction is given for contributions in cash to a technical or vocational training institution which is not operating primarily for profit and those established and maintained by a statutory body.

Exemption from Import Duty, Sales Tax and Excise Duty on Machinery, Equipment and Materials

Machinery, equipment and materials used for training are eligible for exemption from import duties, sales tax and excise duties.

Double Deduction for Expenses Incurred for Approved Training

Human Resources Development Fund (HRDF)

Industrial Building Allowance

Industrial Building Allowance (IBA) of 10% of qualifying capital expenditure is granted to a company which has incurred expenditure on buildings used for industrial and technical or vocational training.

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