INCOME TAX (ACCELERATED CAPITAL ALLOWANCES) (REINVESTMENT IN A QUALIFYING PROJECT) RULES 2000

INCOME TAX (ACCELERATED CAPITAL ALLOWANCES) (REINVESTMENT IN A QUALIFYING PROJECT) RULES 2000

IN exercise of the powers conferred by paragraph 154(1) (b) and section 42 of the Income Tax Act 1967 [Act 53], the Minister makes the following rules:
Citation and commencement
1. (1) These rules may be cited as the Income Tax (Accelerated Capital Allowances) (Reinvestment In a Qualifying Project) Rules 2000.
(2) These Rules shall have effect from the year of assessment 2001.
Application
2. These Rules shall apply in respect of the qualifying plant expenditure incurred on the provision of plant or machinery for the purposes of a qualifying project in respect of a promoted activity or a promoted product or an agricultural project and used for the purposes of the business.
Interpretation
3. For the purposes of these Rules-
"promoted activity or promoted product" means any activity or product promoted under section 4 of the Promotion of Investments Act 1986 [Act 327];
"qualifying plant expenditure" means capital expenditure incurred under paragraph 2 of Schedule 3 to the Act;
"agricultural project" has the meaning as defined under paragraph 8(c) in respect of activities listed under paragraph 9(aa) until (ff) of Schedule 7A to the Act;
"qualifying project" has the meaning as defined under paragraph 8(a) of Schedule 7A to the Act.
Initial allowance
4. The initial allowance under paragraph 10 of Schedule 3 to the Act shall be equal to two-fifths of the qualifying plant expenditure.
Annual allowance
5. The annual allowance under paragraph 15 of Schedule 3 to the Act shall be equal to one-fifth of the qualifying plant expenditure.
Non-application
6. These Rules shall not apply to a company -
(a) for the period during which the company has been granted reinvestment allowance under Schedule 7A to the Act;
(b) for the period during which the company has been given granted pioneer status or investment tax allowance under the Promotion of Investments Act 1986 in respect of the same promoted activity or promoted product;
(c) for the year of assessment in which it fails to submit a copy of the letter from the Malaysian Industrial Development Authority confirming the promoted activity or promoted product undertaken in respect of a qualifying project.

Made 29 December 2000.
[Perb. CR (8. 20) 116/1-138 (2001) Vol. 3 (SK. 1) ; LHDN. 01/35/(S) /42/51/231-2; PN (PU2) 80/XXIX]

On behalf and in the name of the Minister of Finance,

CHAN KONG CHOY
Deputy Minister of Finance

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