INCOME TAX (ACCELERATED CAPITAL ALLOWANCE) (CONSERVATION OF ENERGY) RULES 2003 [P.U.(A) 349]


INCOME TAX (ACCELERATED CAPITAL ALLOWANCE) (CONSERVATION OF

ENERGY) RULES 2003 [P.U.(A) 349]

(Gazetted on 18 September, 2003)

 

IN exercise of the powers conferred by paragraph 154(1)(b) 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 Allowance) (Conservation of Energy) Rules 2003.

 

(2) These Rules are deemed to have effect from the year of assessment 2003.

 

Interpretation

 

2. For the purposes of these Rules, “qualifying plant expenditure” means capital expenditure incurred under paragraph 2 of Schedule 3 to the Act.

 

Application

 

3. These Rules shall apply to a company in respect of qualifying plant expenditure incurred in the basis period for a year of assessment on the provision of plant or machinery as certified by the Ministry of Energy, Communications and

Multimedia as a plant or machinery used exclusively for the conservation of energy of its business.

 

Initial allowance

 

4. Initial allowance provided under paragraph 10 of Schedule 3 to the Act, shall be equal to two-fifth of the qualifying plant expenditure.

 

Annual allowance

 

5. (1) Subject to subparagraph (2), annual allowance provided under paragraph 15 of Schedule 3 to the Act shall be equal to three-fifth of the qualifying plant expenditure.

 

(2) Where a company had incurred qualifying plant expenditure and has been allowed an annual allowance under the Income Tax (Accelerated Capital Allowance) (Conservation of Energy) Rules 2001 [P.U. (A) 82/2001],

the annual allowance for the year of assessment 2003 shall be the amount of that qualifying plant expenditure reduced by the total allowances allowed under these Rules.

 

Non-application

 

6. These Rules shall not apply to a company—

 

(a) for the period during which the company has been granted any incentives except for deductions for promotion of exports under the Promotion of Investment Act 1986 [Act 327]; or

 

(b) for the period during which the company had been given reinvestment allowance under Schedule 7A of the Act.

 

Revocation

 

7. The Income Tax (Accelerated Capital Allowance) (Conservation of Energy) Rules 2001 [P.U. (A) 82/2001] is revoked with effect from the year of assessment 2003.

 

Made 28 August 2003

[Perb. 0.3865/305 vol. 3; LHDN. 01/35/(S)/42/51/231-17.3; PN(PU2)80/XXXIX]

 

                                                                                                      DR. JAMALUDIN BIN MOHD. JARJIS

                                                                                                                    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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