{"id":22135,"date":"2026-05-12T17:27:18","date_gmt":"2026-05-12T09:27:18","guid":{"rendered":"https:\/\/mtcc.com.my\/?p=22135"},"modified":"2026-06-24T16:10:14","modified_gmt":"2026-06-24T16:10:14","slug":"tax-deduction-for-mtcs-pefc-certification","status":"publish","type":"post","link":"https:\/\/mtcc.com.my\/bm\/tax-deduction-for-mtcs-pefc-certification\/","title":{"rendered":"Tax Deduction for MTCS\/PEFC Certification"},"content":{"rendered":"<p class=\"wp-block-paragraph\"><strong>The Malaysian Timber Certification Council (MTCC)<\/strong>&nbsp;wishes to inform that companies certified under the Malaysian Timber Certification Scheme (MTCS), endorsed by the&nbsp;Programme for the Endorsement of Forest Certification&nbsp;(PEFC), may be eligible for tax deductions under incentives provided by the&nbsp;Inland Revenue Board of Malaysia&nbsp;(LHDN) pursuant to the&nbsp;Income Tax Act 1967.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><span style=\"text-decoration: underline;\">Eligibility<\/span><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The incentive is eligible for Malaysian companies that:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Obtain MTCS\/PEFC Chain of Custody (COC) certification \/ Forest Management (FM) certification<\/strong><\/li>\n\n\n\n<li><strong>Maintain or renew their MTCS\/PEFC COC \/ FM certification<\/strong><\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Companies must incur expenses related to audit certification activities conducted by a certification body accredited by the Department of Standards Malaysia (DSM). Certification bodies accredited<strong>&nbsp;<\/strong>by DSM for the purpose of issuing certifications under DSM, include the following programmes:<\/p>\n\n\n\n<ol style=\"list-style-type:lower-alpha\" class=\"wp-block-list\">\n<li><strong>Product Certification Programme (PC)<\/strong><\/li>\n\n\n\n<li><strong>Forest Management Certification Programme (FMC)<\/strong><\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><span style=\"text-decoration: underline;\">Claiming the Tax Deduction<\/span><\/strong><\/p>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li><\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Obtaining MTCS\/PEFC Chain of Custody (COC) certification \/ Forest Management (FM) certification<\/li>\n<\/ol>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Double Tax Deduction \u2013 Paragraph 34(6)(ma), Income Tax Act 1967<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Expenses incurred by a company for the purpose of&nbsp;<strong>obtaining MTCS\/PEFC certification<\/strong>, are eligible for a&nbsp;<strong>double tax deduction<\/strong>&nbsp;provided the certification is issued by an accredited Certification Body under Paragraph 34(6)(ma).<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Expenses that may qualify for&nbsp;<strong>double tax deduction<\/strong>&nbsp;include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Application fee<\/li>\n\n\n\n<li>Annual fee (for the first year only)<\/li>\n\n\n\n<li>Assessment fee<\/li>\n\n\n\n<li>Other fees imposed by the Certification Body for obtaining the certification<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<ol start=\"2\" class=\"wp-block-list\">\n<li>Maintaining or renewing their MTCS\/PEFC COC \/ FM certification<\/li>\n<\/ol>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Single Tax Deduction \u2013 Section 33(1), Income Tax Act 1967<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After the&nbsp;<strong>MTCS\/PEFC certification has been obtained<\/strong>, any fees charged by the Certification Body in subsequent years are eligible only for a&nbsp;<strong>single tax deduction<\/strong>&nbsp;under Section 33(1).<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Expenses that may qualify for&nbsp;<strong>Single Tax Deduction<\/strong>&nbsp;include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Annual surveillance fee<\/li>\n\n\n\n<li>Annual renewal fee<\/li>\n\n\n\n<li>Reassessment fee<\/li>\n\n\n\n<li>Other fees imposed by the Certification Body for maintaining the certification<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Reference: <a href=\"https:\/\/www.hasil.gov.my\/media\/esciopqv\/20251230-garis-panduan-bagi-potongan-perbelanjaan-di-bawah-perenggan-34-6-m-dan-ma-acp.pdf\"><strong>GARIS PANDUAN; POTONGAN PERBELANJAAN DI BAWAH PERENGGAN 34(6)(m) DAN 34(6)(ma) AKTA CUKAI PENDAPATAN 1967 BAGI MAKSUD PENGIRAAN CUKAI PENDAPATAN<\/strong><\/a><\/p>\n\n\n\n<div data-wp-interactive=\"core\/file\" class=\"wp-block-file\"><object data-wp-bind--hidden=\"!state.hasPdfPreview\" hidden class=\"wp-block-file__embed\" data=\"https:\/\/mtcc.com.my\/wp-content\/uploads\/2026\/05\/MTCS-Tax-Deduction-2026.pdf\" type=\"application\/pdf\" style=\"width:100%;height:600px\" aria-label=\"Embed of MTCS Tax Deduction 2026.\"><\/object><a id=\"wp-block-file--media-e1b38881-a413-4bc5-b88a-22f0712d265d\" href=\"https:\/\/mtcc.com.my\/wp-content\/uploads\/2026\/05\/MTCS-Tax-Deduction-2026.pdf\">MTCS Tax Deduction 2026<\/a><a href=\"https:\/\/mtcc.com.my\/wp-content\/uploads\/2026\/05\/MTCS-Tax-Deduction-2026.pdf\" class=\"wp-block-file__button wp-element-button\" download aria-describedby=\"wp-block-file--media-e1b38881-a413-4bc5-b88a-22f0712d265d\">Download<\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Publish Date: 12 May 2026<\/p>","protected":false},"excerpt":{"rendered":"<p>The Malaysian Timber Certification Council (MTCC)&nbsp;wishes to inform that companies certified under the Malaysian Timber Certification Scheme (MTCS), endorsed by the&nbsp;Programme for the Endorsement of Forest Certification&nbsp;(PEFC), may be eligible for tax deductions under incentives provided by the&nbsp;Inland Revenue Board of Malaysia&nbsp;(LHDN) pursuant to the&nbsp;Income Tax Act 1967. Eligibility The incentive is eligible for Malaysian [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":26156,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[15],"class_list":["post-22135","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-announcement","tag-home-page"],"blocksy_meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tax Deduction for MTCS\/PEFC Certification - MTCC | MALAYSIAN TIMBER CERTIFICATION COUNCIL<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"ms_MY\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tax Deduction for MTCS\/PEFC Certification - MTCC | MALAYSIAN TIMBER CERTIFICATION COUNCIL\" \/>\n<meta property=\"og:description\" content=\"The Malaysian Timber Certification Council (MTCC)&nbsp;wishes to inform that companies certified under the Malaysian Timber Certification Scheme (MTCS), endorsed by the&nbsp;Programme for the Endorsement of Forest Certification&nbsp;(PEFC), may be eligible for tax deductions under incentives provided by the&nbsp;Inland Revenue Board of Malaysia&nbsp;(LHDN) pursuant to the&nbsp;Income Tax Act 1967. 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