Income Tax (Deduction for Investment in an Approved Consolidation of

Income Tax (Deduction for Investment in an Approved Consolidation of
Management of Smallholding and Idle Land Project) Rules 2009

In exercise of the powers conferred by paragraph 154(1)(b) of the Income Tax Act 1967 [Act 53], the Minister makes the following order:

Citation and commencement

1. (1) These rules may be cited as the Income Tax (Deduction for Investment in an Approved Consolidation of Management of Smallholding and Idle Land Project) Rules 2009.

(2) These Rules are deemed to have effect for the year of assessment 2002 and subsequent years of assessment subject to subsubparagraph 2(2)(b).

Deduction

2. (1) In ascertaining the adjusted income of a resident who is—

(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; or

(d) a company established under the Companies Act 1965 [Act 125], and has a business source in Malaysia (hereinafter referred to as “resident”) investing in an approved consolidation of management of smallholding and idle land project (hereinafter referred to as the “approved consolidation project”) in the basis period for a year of assessment, there shall be allowed a deduction equivalent to the consolidation project, undertaken by other resident in the basis period for that year of assessment.

(2) To qualify for a deduction under this Rules—

(a) an application for such exemption shall be made by the resident who makes the investment to the Minister; and

(b) the application for approval to carry out the approved consolidation project is made by the resident will carry out such project the Minister responsible for such project on or after 21 October 2002 but not later than 31 December 2011.

(3) For the purpose of this rules, “investment” means an investment in the form of cash or holding of shares solely for the purpose of the approved consolidation project.

(4) Nothing in subparagraph (1) shall absolve or be deemed to absolve the resident who makes the investment 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.

Made 23 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 154(2) of the
Income Tax Act 1967]

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