Talentcorp Issues Structured Internship Programme Tax Incentive Guidelines.

Following the 2012 Budget announcement, companies in Malaysia providing structured internship programmes will soon be able to assess their eligibility for a tax deduction incentivefollowing the issuance of the Structured Internship Programme (SIP) Tax Incentive Guidelines by Talent Corporation Malaysia Berhad (TalentCorp).

The tax incentive, which take effect 1 January 2012, is aimed at generating industry awareness and increased participation in the SIP, a collaborative effort between TalentCorp and the Ministry of Higher Education (MoHE) which hopes to generate more employable graduates to fill the current talent shortage in corporate Malaysia by providing industry-relevant internships to Malaysian students in local institutions of higher learning (IPT).

Under the Guidelines, companies offering paid structured internship programmes endorsed by TalentCorp will be able to claim tax deductions on internship training-related expenses of up to an average total of RM5,000 per intern for each assessment year. Issued together with a set of Frequently Asked Questions (FAQs), the Guidelines set out the criteria that applicants will be expected to meet before being eligible to enjoy the tax incentive initiative.

Internship programmes under consideration would cover a spectrum of organisational disciplines, have a defined curriculum and mandatory hours of field-related experience, and place a strong emphasis on the development of technical, personal, and business competencies. Additionally, companies must clearly state the objectives and learning outcomes of the internship programme in their application.

By participating in the incentive scheme, approved companies seeking to recruit new interns are obligated to do so via Career4U, the internship and entry-level recruitment portal managed by MoHE in collaboration with the online recruitment website JobStreet.com. The companies will also be responsible for ensuring the participation of all interns in the TalentCorp Internship Survey, the results of which will be one of the factors used as a basis for the renewal of the companies’ participation eligibility for the following year.

Interested parties should note that a key criterion of the Guidelines will require all approved companies to recruit only Malaysian students pursuing their studies in local IPTs as interns. Also, tax deduction eligibility will only apply to interns hired after application approval is given by TalentCorp.

Prospective applicants for the double tax deduction incentive are advised to read and understand the SIP Tax Incentive Guidelines before submitting their online applications to TalentCorp beginning 1 January 2012. To access the SIP Tax Incentive Guidelines and online application form, please visit https://sip.talentcorp.com.my.

Members of the Media may contact the Communications Unit at tel no. 03-78397051 (Mariena Malek) / 03- 78397053 (Syaheeda Hasbullah) or fax no. 03-78397001 or e-mail: mariena@talentcorp.com.my / syaheeda.hasbullah@talentcorp.com.my

Background information:
Talent Corporation Malaysia Berhad (TalentCorp) was established on 1 January 2011 under the Prime Minister’s Department to formulate and facilitate initiatives to attract, retain and nurture talents in support of the country’s Economic Transformation Programme (ETP). Collaborating closely with employers in priority economic sectors, TalentCorp develops demand-driven initiatives focused on three main talent supply segments, specifically Malaysians in Malaysia, Malaysians abroad and global talent.