What useful life should be considered when estimating the TAB factor of an intangible asset?

Amortisation of intangible assets is not always tax deductible. Its deductibility depends on the corporate income tax legislation of single countries. Most countries define maximum amortisation rates or minimum number of years in which the amortisation of intangible assets can be deducted, if at all. This page displays the legal tax amortisation periods of the main types of intangible assets.

Summary Table

CountryPatentsTechnologyTrademarkCustomer relationships GoodwillLast update
Malaysia52.55no TABno TABApr 2016

Further Detail and Source Legislation

The tax amortisation periods of intangible assets allowed in Malaysia are explained by the Ministry of Finance [1] and only applies to trading companies where at least 60% of the issued share capital is Malaysian owned.[2]

Capital expenditure on acquiring proprietary rights such as patents, industrial design/trademarks is allowed as deduction of 20% on the cost of the acquisition of the proprietary rights for 5 years.
Technology assets, including software can be depreciated for tax purposes in 2.5 years.

Goodwill and other intangible assets are not deductible for tax purposes.

  1. ^ Accelerated capital allowance according to Income Tax Act 1967
  2. ^ TAX INCENTIVES Publication by the Malaysian Institute of Accountants

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