Income Tax Act · 2024 Revised Edition · Part · Ascertainment of Income
11D. Further deduction for expenditure on research and development project
Official textFrom Attorney General's Chambers, unchanged
Subject to this section, where the Collector is satisfied that —
Collector
“Collector” means the Collector of Income Tax appointed under section 3 and includes for all purposes of this Act, except the powers conferred on the Collector by sections 76, 79, 80 and 83, a Deputy Collector so appointed;
a person carrying on a manufacturing trade or business has incurred expenditure on or after 1st January 2001 in undertaking directly by himself, or in paying a research and development company to undertake on his behalf, an approved research and development project in Brunei Darussalam which is related to that trade or business;
a research and development company has incurred expenditure on or after 1st January 2001 in undertaking an approved research and development project in Brunei Darussalam and no deduction under this section has been allowed to another person in respect of any expenditure for that project or for another project of which that project forms a part; or
a person carrying on a trade or business for the provision of any specified services has incurred expenditure on or after 1st January 2001 in undertaking directly by himself, or in paying a research and development company to undertake on his
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behalf, an approved research and development project in
Brunei Darussalam which is related to that trade or business, there shall be allowed to that person or research and development company a further deduction of the amount of such expenditure in addition to the deduction allowed under section 11 or 11C.
The Minister may —
specify the maximum amount of the expenditure or any item thereof, incurred to be allowed under subsection (1);
impose such conditions as he thinks fit when approving the research and development project; and
specify the period or periods for which deduction is to be allowed under this section.
No deduction shall be allowed under this section in respect of any expenditure which is not allowed under section 11 or 11C.
In this section —
“approved” means approved by the Minister charged with the responsibility for industrial development;
“specified services” has the same meaning as in section 11C.
Terms defined in s 2
Collector
Defined · s 2“Collector” means the Collector of Income Tax appointed under section 3 and includes for all purposes of this Act, except the powers conferred on the Collector by sections 76, 79, 80 and 83, a Deputy Collector so appointed;
research and development
Defined · s 2“research and development” means any systematic or intensive study carried out in the field of science or technology with the object of using the results of the study for the production or improvement of materials, devices, products, produce, or processes, but does not include — (a) quality control or routine testing of materials, devices or products; (b) research in the social sciences or the humanities; (c) routine data collection; (d) efficiency surveys or management studies; or (e) market research or sales promotions;
research and development company
Defined · s 2“research and development company” means a company which provides research and development services for any trade or business;
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