Income Tax (Exemption) (No. 9) Order 2009

Income Tax (Exemption) (No. 9) 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. 9) Order 2009.

(2) This Order is deemed to have effect for the year of assessment 2003 and subsequent years of assessment subject to subsubsubparagraph 3(2)(a)(ii).

Interpretation

2. In this order “consolidation of management project” means a consolidation of management of smallholding and idle land projects.

Exemption

3. (1) Subject to the qualification under subparagraph (2), the Minister exempts the following persons who are resident in Malaysia and have business sources in Malaysia from the payment of income tax in respect of statutory income derived by such persons from a consolidation of management project:

(a) an individual;

(b) a partnership established under the Partnership Act 1961 [Act 135];

(c) a co-operative society registered under any written law relating to the registration of co-operative societies in Malaysia; and

(d) a company established under the Companies Act 1965 [Act 125].

(2) To qualify for an exemption under this Order—

(a) relating to the consolidation of management project—

(i) the consolidation of management project shall be approved by the Minister charged with the responsibility of approving such project; and

(ii) the application for the approval to carry out the consolidation of management project is made by the person referred to in subparagraph (1) to the Minister referred to in subsubsubparagraph (i) on or after 21 September 2002 but not later than 31 December 2011; and

(b) an application for such exemption shall be made by the person referred to in subparagraph (1) to the Minister.

(3) The exemption granted under this Order shall be for a period of five consecutive years of assessment commencing from the basis period for a year of assessment the consolidation of management project commences.

(4) Nothing in subparagraph (1) shall absolve or be deemed to absolve the qualifying person from complying with any requirement to submit any return or statement of accounts or to furnish any other information under the provisions of the Act.

Separate account

4. (1) Where a qualifying person carries out a consolidation of management project and any other project or business, each of such project and business shall be treated as a separate and distinct source of project or business of the qualifying person.

(2) The qualifying person shall maintain a separate account for the income derived from the consolidation of management project.

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

5. Paragraphs 5 and 6 of Schedule 7A of the Act shall apply, mutatis mutandis, to the amount of income exempted under subparagraph 3(1).

Made 24 November 2009

[Perb. 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]