LHDN has issued a new guideline, dated 3 July 2026, on the double tax deduction for export of higher education, replacing the version that has been in place since December 2004. If your company runs a private higher education institution and promotes it overseas, here is a step by step guide on how to claim.

Step 1. Confirm your company qualifies. You must be tax resident in Malaysia, incorporated under the Companies Act 2016 or 1965, and set up mainly to run a private higher education institution registered with the Ministry of Higher Education.

Step 2. Get prior approval. Before running any overseas recruitment or promotion activity, apply to the Bahagian Pengantarabangsaan Pendidikan Tinggi (BPPT), Jabatan Pendidikan Tinggi (JPT), under KPT. If you outsource this to an approved agency, get KPT confirmation that the payment is for this purpose.

Step 3. Record on your qualifying expenses. This covers market research, tender preparation, technical information, staff or director travel, education fairs, an overseas promotion office, and overseas advertising. Hotel is capped at RM300 a day, meals at RM150 a day.

Step 4. Complete the claim form. Use form LHDN/BT/DD/POE/HE/2026, downloadable from hasil.gov.my. This is a new form number, replacing the old 2004 version.

Step 5. Declare your claim. This is where the process has changed. Previously, you had to prepare two copies and physically mail one to LHDN's Technical Department in Jalan Duta. Now, you simply declare the claim under section D1 of your income tax return. No more posting required.

Step 6. Keep your records. Original forms and supporting documents must now be kept for at least seven years from the end of the relevant year of assessment, for audit purposes.

The deduction itself has not changed. Only the filing process has become simpler.

Unsure if your recruitment activities qualify or how to file this correctly? Our team at August Advisory can help you review this. WhatsApp 010-246 2151.