§ 37Q — Exclusion of expenditure or payment subsidised by capital grant

37Q.—(1) Despite anything in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, a deduction or an allowance under this Act or Part 8 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 may not be made or given in respect of any expenditure or payment to the extent that the expenditure or payment is or is to be subsidised by a grant or subsidy from the Government or a statutory board that is —(a)

capital in nature; and

(b)

approved by the Government or statutory board on or after 1 January 2021.[41/2020]

[Act 39 of 2023 wef 29/12/2023]

(2) Subsection (1) does not affect the operation of the following provisions:(a)

sections 14A(7), 14B(4)(e), 14C(1A), 14D(12)(b), 14EA(10), 14EB(9), 14H(3)(c), 14I(10)(b), 14U(7), 14Z(7) and (9) and 37O(29);[Act 30 of 2023 wef 30/10/2023]

[Act 25 of 2025 wef 19/02/2025]

(b)

section 41(3) of the Economic Expansion Incentives (Relief from Income Tax) Act 1967.[37N

[41/2020]

—(1) Despite anything in this Act or the Economic Expansion Incentives (Relief from Income Tax) Act 1967, a deduction or an allowance under this Act or Part 8 of the Economic Expansion Incentives (Relief from Income Tax) Act 1967 may not be made or given in respect of any expenditure or payment to the extent that the expenditure or payment is or is to be subsidised by a grant or subsidy from the Government or a statutory board that is —(a)

capital in nature; and

(b)

approved by the Government or statutory board on or after 1 January 2021.[41/2020]

[Act 39 of 2023 wef 29/12/2023]

(2) Subsection (1) does not affect the operation of the following provisions:(a)

sections 14A(7), 14B(4)(e), 14C(1A), 14D(12)(b), 14EA(10), 14EB(9), 14H(3)(c), 14I(10)(b), 14U(7), 14Z(7) and (9) and 37O(29);[Act 30 of 2023 wef 30/10/2023]

[Act 25 of 2025 wef 19/02/2025]

(b)

section 41(3) of the Economic Expansion Incentives (Relief from Income Tax) Act 1967.[37N

[41/2020]