The Inland Revenue Board of Malaysia (IRBM) has published two technical guidelines: Tax Treatment of Research and Development Expenditure Under the Petroleum (Income Tax) Act, dated 22 June 2023; and Tax Treatment of Lease Expenses for Special Assets Under the Petroleum (Income Tax) Act, dated 20 June 2023. Research and Development Expenditure The guidelines on Research and Development (R&D Expenditure concern expenditure incurred to ensure an increase in process efficiency or improvements in the production of crude oil and natural gas. The main points include: R&D expenditure incurred in the exploration phase prior to production is eligible for deduction as...