INCOME TAX (EXEMPTION) (NO. 10) ORDER 2009

IN exercise of the powers conferred by paragraph 127(3)(b) of the Income Tax Act 1967 [Act 53], the Minister makes the following order:

Citation and commencement

1. (1) This order may be cited as the Income Tax (Exemption) (No. 10) Order 2009.

(2) This Order is deemed to have come into operation on 21 May 2003 and shall have effect to the extent of its application for the purposes of subparagraph 3(b) and subparagraph 4(1).

Interpretation

2. In this Order—

“forest plantation project” means a forest plantation project for species as specified in the Schedule;

“new forest plantation project” means the first approved forest plantation project undertaken by a company;

“expansion forest plantation project” means a project involving new investment undertaken by a company in expanding its approved forest plantation project and the approved forest plantation project has not been granted any tax exemption under this Order or the Income Tax (Exemption) (No. 11) Order 2009;

“approved project” means a project which fulfills the condition in paragraph 3;

“company” means a company—

(a) incorporated under the Companies Act 1965 [Act 125] and resident in Malaysia; and

(b) undertaking a new project or an expansion project.

Approved project

3. A project undertaken by a company is qualified for an exemption under this Order if such project fulfills the following conditions:

(a) the project is a forest plantation project or an expansion forest plantation project; and

(b) the application for the new forest plantation project or the expansion forest plantation project relating to the project referred to in subparagraph (a) is made to the Minister, through the Minister charged with responsibility for that project, on or after 21 May 2003 but not later than 31 December 2011.

Exemption

4. (1) Subject to subparagraph (2), the Minister exempts a company from the payment of income tax in relation to—

(a) a new forest plantation project for a period of ten consecutive years of assessment (referred to in this Order as the “exempt years of assessment”) in respect of the statutory income, commencing from the first year of assessment in which the company derived statutory income from that new forest plantation project; or

(b) an expansion forest plantation project for a period of five consecutive years of assessment (referred to in this Order as the “exempt years of assessment”) in respect of the statutory income from its existing approved project and expansion project, commencing from the first year of assessment in which the company derived statutory income from the existing approved project and expansion project, as the case may be, and that first year of assessment shall not be earlier than the year of assessment in the basis period in which the date of approval from the Minister falls.

(2) The statutory income of the project referred to in subparagraph (1) in the basis period for each of the exempt years of assessment shall be determined after deducting allowances which fall to be made under Schedule 3 of the Act notwithstanding that no claim for such allowances has been made.

(3) Where an asset used for the purpose of the project referred to in subparagraph (1) is also used for the purpose of a project or business other than that project, the allowances which fall to be made under Schedule 3 of the Act shall be deducted as is reasonable having regard to the extent to which the asset is used for the purpose of the new project or expansion project, as the case may be.

(4) Nothing in subparagraph (1) shall absolve or is deemed to have absolved the company from complying with any requirement to submit any return or statement of accounts or to furnish any other information under the provision of the Act.

Losses

5. (1) Any amount of adjusted loss incurred—

(a) from the year of assessment in the basis period in which the project referred to in subparagraph 4(1) has commenced to the year of assessment immediately prior to the exempt years of assessment;

and

(b) during the exempt years of assessment, shall be carried forward and deducted against the statutory income of the project referred to in subparagraph 4(1) in its post-exempt year or years of assessment until such project has utilized the whole amount of the adjusted loss to which it is so entitled.

(2) The amount of the adjusted loss that was utilized to reduce the statutory income of the project referred to in subparagraph 4(1) in its post-exempt year or years of assessment shall be disregarded for the purposes of subsections 43(2) and 44(2) of the Act.

Capital allowance

6. For the purpose of this Order, Schedule 3 of the Act shall apply.

Withdrawal of tax exemption

7. The Minister may withdraw the exemption on the statutory income of the project referred to in subparagraph 4(1) if a company fails to comply with the conditions imposed by the Minister.

Separate account

8. A company which is exempted under subparagraph 4(1) shall maintain a separate account for the income derived from the project referred to in that subparagraph.

Application of paragraphs 5 and 6 of Schedule 7A of the Act

9. Paragraphs 5 and 6 of Schedule 7A of the Act shall apply, mutatis mutandis, to the amount of statutory income exempted from the project referred to in subparagraph 4(1).

Non-application

10. This Order shall not apply to—

(a) a new project or an expansion project, that commences after one year from the date of approval or after such extended period approved by the Minister;

(b) a company in the basis period for a year of assessment if that company for that year of assessment—

(i) has been granted any incentive under the Promotion of Investments Act 1986 [Act 327];

(ii) has made a claim for reinvestment allowance under Schedule 7A of the Act;

(iii) has been granted an exemption under paragraph 127(3)(b) or subsection 127(3A) of the Act; or

(iv) has qualified for a deduction under any rules made under section 154 of the Act including any rules that provides higher fraction for an asset for the purpose of qualifying plant expenditure under Schedule 3 of the Act.

SCHEDULE


Item Specie Local Name
1. Acacia mangium, Acacia auriculiformis, Acacia hybrids Acacia

2. Agathis borneensis Damar minyak (Peninsular)/Bindang (Sarawak)/Mengilan (Sabah)

3. Alstonia angustifolia, Alstonia angustiloba, Alstonia Pulai (Peninsular)/Pelai (Sarawak)
macrophylla, Alstonia pneumatophora, Alstonia
scholaris, Alstonia spatulata

4. Anisoptera costata, Anisoptera curtisii, Anisoptera Mersawa/Pengiran (Sabah)
grossivenia, Anisoptera laevis, Anisoptera marginata,
Anisoptera megistocarpa, Anisoptera scaphula

5. Araucaria cunninghamii Hoop pine
Araucarai hunstenii Klinki pine

6. Artocarpus altilis, Artocarpus elasticus, Artocarpus Cempedak/Terap
lowii, Artocarpus odoratissima, Artocarpus scortechinii,
Artocarpus tamaran, Artocarpus teysmannii

7. Azadirachta excelsa Sentang (Peninsular)/Ranggu (Sabah, Sarawak)

8. Bischofia javanica Javan cedar/Jitang/Tuai

9. Calamus manan Rotan manau
Calamus caesius Rotan sega

10. Calophyllum biflorum, Calophyllum calaba, Calophyllum Bintangor
canum, Calophyllum coriaceum, Calophyllum
depressinervosum, Calophyllum ferrugineum,
Calophyllum inophyllum, Calophyllum macrocarpum,
Calophyllum pulcherrimum, Calophyllum sclerophyllum,
Calophyllum symingtonianum, Calophyllum tetrapterum,
Calophyllum teysmannii, Calophyllum wallichianum

11. Campnosperma auriculatum, Campnosperma coriaceum, Terentang
Campnosperma squamatum

12. Cananga odorata Kenanga

13. Canarium apertum, Canarium littorale, Canarium Kedondong (Peninsular)/ Seladah (Sarawak)
pseudosumatranum

14. Casuarina cunninghamiana, Casuarina equisetifolia, Rhu/Jemara/Chemara
Casuarina glauca, Casuarina junghuhniana

15. Ceiba pentandra, Bombax ceiba, Bombax valetonii Kapok (Sabah)/Kekabu

16. Chukrasia tabularis Surian batu

17. Cinnamomum altissimum, Cinnamomum iners, Pokok Teja/Medang teja/ Medang
Cinnamomum sintoc, Cinnamomum javanicum,
Cinnamomum porrectum, Cinnamomum scortechinii

18. Coelostegia borneensis, Coelostegia griffithii Punggai (Peninsular)/Durian hantu (Sarawak)

19. Cratoxylum arborescens, Cratoxylum glaucum Geronggang

20. Dacrydium beccarii, Dacrydium comosum, Dacrydium Sempilor/Ekor (Peninsular)
elatum, Dacrydium gibbsiae

21. Dactylocladus stenostachys Jongkong

22. Dillenia borneensis, Dillenia excelsa, Dillenia Simpoh (Peninsular)/Buan (Sarawak)
grandifolia, Dillenia pulchella, Dillenia reticulata

23. Dipterocarpus acutangulus, Dipterocarpus Keruing
applanatus, Dipterocarpus elongates, Dipterocarpus
baudii, Dipterocarpus caudiferus, Dipterocarpus
chartaceus, Dipterocarpus concavus, Dipterocarpus
cornutus, Dipterocarpus confertus, Dipterocarpus
conformis, Dipterocarpus costatus, Dipterocarpus
costulatus, Dipterocarpus crinitus, Dipterocarpus
dyeri, Dipterocarpus elongatus, Dipterocarpus
eurynchus, Dipterocarpus fagineus, Dipterocarpus
geniculatus, Dipterocarpus gracilis, Dipterocarpus
grandiflorus, Dipterocarpus hasseltii, Dipterocarpus
humeratus, Dipterocarpus kerrii, Dipterocarpus
kunstleri, Dipterocarpus lamellatus, Dipterocarpus
lowii, Dipterocarpus obtusifolius, Dipterocarpus
oblongifolius, Dipterocarpus ochraceus, Dipterocarpus
pachyphyllus, Dipterocarpus palembanicus,
Dipterocarpus pseudofagineus, Dipterocarpus
rigidus, Dipterocarpus rotundifolius, Dipterocarpus
sarawakensis, Dipterocarpus semivestitus, Dipterocarpus
sublamellatus, Dipterocarpus stellatus, Dipterocarpus
validus, Dipterocarpus verrucosus

24. Dryobalanops aromatica, Dryobalanops beccarii, Kapur
Dryobalanops fusca, Dryobalanops keithii, Dryobalanops
lanceolata, Dryobalanops oblongifolia, Dryobalanops
rappa

25. Duabanga moluccana, Duabanga grandiflora Magasawih/Sawih (Sarawak) Magas (Sabah)/Berembang bukit (Peninsular)/Tagahas (Sabah)

26. Durio carinatus, Durio grandiflorus, Durio graveolens, Durian
Durio lowianus, Durio malaccensis, Durio oxleyanus,
Durio singaporensis, Durio wyatt-smithii, Durio
zibethinus

27. Dyera costulata, Dyera polyphylla Jelutong

28. Endospermum diadenum, Sesenduk (Peninsular)/ Senduk-senduk mata/ Marapangi (Sabah)/Terbulan (Sarawak)
Endospermum peltatum

29. Eucalyptus deglupta, Eucalyptus grandis, Eucalyptus Eucalyptus
camadulensis, Eucalyptus pellita, Eucalyptus tereticornis,
Eucalyptus hybrids

30. Eusideroxylon zwageri Belian

31. Fagraea crenulata Malabera/Malabira (Sabah)

32. Gigantochloa levis Buluh beting/Buluh poring
Gigantochloa ligulata Buluh tumpat
Bambusa blumeana Buluh duri
Dendrocalamus asper Buluh betong

33. Gmelina arborea Yemane

34. Gonystylus affinis, Gonystylus bancanus, Gonystylus Ramin
brunnescens, Gonystylus confuses, Gonystylus
maingayi

35. Hevea brasiliensis Rubber/Getah (Klon Lateks Balak)

36. Heritiera albiflora, Heritiera aurea, Heritiera borneensis, Mengkulang/Dungun/ Kembang (Sabah)
Heritiera globosa, Heritiera javanica, Heritiera littoralis,
Heritiera simplicifolia, Heritiera sumatrana

37. Hopea apiculata, Hopea auriculata, Hopea beccariana, Merawan/Selangan (Sabah)
Hopea bilitonensis, Hopea bracteata, Hopea coriaceae,
Hopea dryobalanoides, Hopea dyeri, Hopea ferrea,
Hopea ferruginea, Hopea glaucescens, Hopea griffithii,
Hopea helferi, Hopea johorensis, Hopea mengarawan,
Hopea nervosa, Hopea nutans, Hopea odorata, Hopea
latifolia, Hopea pachycarpa, Hopea pedicellata, Hopea
pierrei, Hopea polyalthioides, Hopea pubescens, Hopea
sangal, Hopea semicuneata, Hopea subalata, Hopea
sublanceolata, Hopea sulcata

38. Ilex cissoidea, Ilex cymosa Mensirah (Peninsular)/ Kerdam (Sarawak)/Morogis (Sabah)

39. Intsia palembanica, Intsia bijuga Merbau

40. Khaya ivorensis, Khaya
Khaya senegalensis

41. Kokoona littoralis, Kokoona ochracea, Kokoona ovata- Mata ulat (Peninsular)/Bajan (Sarawak)/Perupok Kuning (Sabah)
lanceolata, Kokoona reflexa

42. Koompassia malaccensis Kempas (Peninsular)/Menggaris (Sarawak) Tapang(Sarawak)

43. Macaranga beccariana, Macaranga conifera, Macaranga Mahang (Peninsular)/ Merkubong (Sarawak)/ Merkubong (Sabah)
gigantea, Macaranga hosei, Macaranga hypoleuca,
Macaranga lowii, Macaranga pruinosa, Macaranga
tanarius, macaranga triloba, Macaranga winkleri

44. Maesopsis eminii Maesopsis

45. Mallotus macrostachyus, Mallotus leucodermis, Mallotus Balek angin, Mallotus dau/Dahu (Sabah)
miquelianus, Mallotus muticus, Mallotus penangensis,
Mallotus philippensis, Mallotus wrayi

46. Mangifera applanata, Mangifera caesa, Mangifera Machang (Peninsular)/ Embang (Sarawak) Beluno/ Bambangan/Mangga (Sabah)
foetida, Mangifera griffthii, Mangifera indica, Mangifera
longipetiolata, Mangifera laurina, Mangifera odorata,
Mangifera pajang, Mangifera parviflora, Mangifera
quadrifida, Mangifera torquenda

47. Neobalanocarpus heimii Chengal

48. Neolamarckia cadamba, Anthocephalus chinensis Kelempayan (Peninsular)/ Laran (Peninsular, Sabah)/ Selimpoh (Sarawak)

49. Octomeles sumatrana Binuang

50. Palaquium clarkeanum, Palaquium gutta, Palaquium Nyatoh
hexandrum, Palaquium hispidum, Palaquium
impressinervium, Palaquium maingayi, Palaquium
microphyllum, Palaquium obovatum, Palaquium
oxleyanum, Palaquium regina-montium, Palaquium
rostratum, Palaquium semaram, Palaquium
xanthochymum

51. Paraserianthes falcataria, Albizia falcataria, Albizia Batai/Kayu machis/Kungkur (Sabah)
chinensis, Albizia lebbek, Albizia acle, Albizia
pedicellata, Albizia procera

52. Parashorea densiflora, Parashorea globosa, Urat mata/Gerutu
Parashorea stellata, Parashorea parvifolia, Parashorea
smythiesii

53. Parkia speciosa, Parkia singularis, Parkia Petai/Kupang (Sabah)
timoriana

54. Pentace adenophora, Pentace curtisii, Pentace laxiflora, Melunak (Peninsular)/Baru (Sarawak)/Takalis (Sabah)
Pentace macrophylla, Pentace triptera

55. Pentaspadon motleyi, Pentaspadon velutinus Pejon/Pelajau

56. Peronema canescens Sungkai

57. Pinus caribaea, Pinus insularis, Pinus merkusii, Pine
Pinus kesiya

58. Pithecellobium splendens Kungkur

59. Pterospermum diversifolium, Pterospermum jackianum, Bayor
Pterospermum subpeltatum

60. Pterocarpus dalbergioides, Pterocarpus indicus, Angsana/Sena/Narra
Pterocarpus macrocarpus, Pterocarpus marsupium,
Pterocarpus santalinus

61. Pterocymbium tinctorium, Pterocymbium javanicum Melembu/Teluto

62. Pterospermum javanicum Bayor Batu

63. Sandoricum beccarianum, Sandoricum koetjape Kelampu (Sarawak)/Sentul (Peninsular, Sabah)

64. Santiria apiculata, Santiria conferta, Santiria Kedondong (Peninsular)/ Seladah (Sarawak)
tomentosa

65. Scaphium linearicarpum, Scaphium longiflorum, Kembang semangkok
Scaphium macropodum, Scaphium scaphigerum

66. Schima wallichii Gegatal/Gatal-gatal (Sabah)

67. Scorodocarpus borneensis Kulim (Peninsular)/Bawang hutan (Sabah)/Ungsunah (Sarawak)

68. Shorea acuminata, Shorea albida, Shorea almon, Shorea Meranti/Seraya (Sabah)
andulensis, Shorea argentifolia, Shorea assamica, Shorea
bracteolata, Shorea dasyphylla, Shorea fallax, Shorea
henryana, Shorea hopeifolia, Shorea hypochra, Shorea
laxa, Shorea leprosula, Shorea macroptera, Shorea
myrionerva, Shorea ochrophloia, Shorea ovalis, Shorea
ovata, Shorea parvifolia, Shorea parvistipulata, Shorea
pauciflora, Shorea platyclados, Shorea polyandra,
Shorea quadrinervis, Shorea revolute, Shorea retusa,
Shorea roxburghii, Shorea rubra, Shorea rugosa, Shorea
scabrida, Shorea slootenii, Shorea smithiana, Shorea
talura, Shorea teysmanniana, Shorea waltonii

69. Shorea macrophylla Engkabang jantong
Shorea pinanga, Engkabang langgai bukit
Shorea palembanica Engkabang asu
Shorea splendida Engkabang bintang
Shorea macrantha Engkabang bungkus
Shorea hemsyleyana Engkabang gading
Shorea stenoptera, Engkabang rusa
Shorea seminis Engkabang terendak
and other Engkabang Kawang (Sabah) species

70. Sindora coriacea, Sindora echinocalyx, Sindora Sepetir (Peninsular)/Tampar hantu (Sarawak)
siamensis, Sindora velutina, Sindora wallichii

71. Swietenia macrophylla Mahogany

72. Tectona grandis Teak/Jati

73. Terminalia bellirica, Terminalia calamansanai, Talisai (Sabah)/Jelawai/ Jaha (Peninsular)/Kedandi (Sarawak)
Terminalia catappa, Terminalia citrina, Terminalia
copelandii, Terminalia foetidissima, Terminalia
phellocarpa, Terminalia subspathulata

74. Tetramerista glabra Punah (Peninsular)/Kayu hujan (Sarawak)/Tuyot (Sabah)

75. Toona calantas, Toona ciliata, Toona sinensis, Toona Surian/Limpaga/Red cedar
sureni

76. Vatica albiramis, Vatica bella, Vatica cinerea, Vatica Resak
cuspida, Vatica dulitensis, Vatica flavida, Vatica
havilandii, Vatica heroptera, Vatica lowii, Vatica
maingayi, Vatica mangachapoi, Vatica maritima,
Vatica micrantha, Vatica nitens, vatica oblongifolia,
Vatica odorata, Vatica pauciflora, Vatica rassak, Vatica
sarawakensis, Vatica scortechinii, Vatica venulosa


Made 23 November 2009
[CR (8.09) 294/6/4-9 (SJ. 9) (2010); LHDN. 01/35/(S)/42/51/231-17.11;
PN(PU2)80/LVIII]

DATO’ SERI HAJI AHMAD HUSNI BIN MOHAMAD HANADZLAH
Second Minister of Finance

[To be laid before the Dewan Rakyat pursuant to subsection 127(4) of the
Income Tax Act 1967]