INCOME TAX (DEDUCTION FOR IMPLEMENTATION OF ROSETTANET) RULES 2004 [P.U. (A) 8]


INCOME TAX (DEDUCTION FOR IMPLEMENTATION OF ROSETTANET)

RULES 2004 [P.U. (A) 8]

(Gazetted on 1 January, 2004)

 

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 (Deduction for Implementation of RosettaNet) Rules 2004.

 

(2) These Rules are deemed to have effect from the year of assessment 2002.

 

Interpretation

 

2. In these Rules, unless the context otherwise requires—

 

“local manufacturer” means a company which is—

 

(a)     incorporated in Malaysia and at least 60 per cent of the issued shared capital of the company is owned by Malaysian nationals;

 

(b)     carrying on manufacturing activities; and

 

(c)     adopting and implementing RosettaNet; and

 

 

“qualifying company” means—

 

 

(a)     a company which is a member of RosettaNet Malaysia Berhad and which is assisting a local manufacturer to adopt and implement RosettaNet; or

 

(b)     a company, association or statutory body which is a member of RosettaNet Malaysia Berhad and which is assisting RosettaNet Malaysia Berhad.

 

Company eligible for deduction

 

3. A qualifying company which is resident in Malaysia for the basis year for a year of assessment shall be eligible for the deduction under these Rules for that year of assessment.

 

Deduction

 

4. Subject to these Rules, for the purpose of ascertaining under the Act the adjusted income of a qualifying company from its business for the basis period for a year of assessment, there shall be allowed as a deduction an amount

equivalent to the cost of the expenses of the kind specified in the Schedule incurred by that qualifying company for the purposes of implementation of RosettaNet as verified by the Small and Medium Industries Development

Corporation (SMIDEC).

 

Revocation

 

5. The Income Tax (Deduction For Implementation of RosettaNet) Rules 2002 [P.U. (A) 316/2002] is revoked.

 

SCHEDULE

 

1.   Cost of new computer hardware, software and networking device provided by a qualifying company to RosettaNet Malaysia Berhad.

 

2.   Cost of new office equipment provided by a qualifying company to RosettaNet Malaysia Berhad.

 

3.   Basic salary of employees on secondment from a qualifying company to RosettaNet Malaysia Berhad for a period of not more than three years.

 

4.   Basic salary of employees on secondment from a qualifying company to a local manufacturer for a period of two to six months.

 

5.   Cost relating to fees, travelling expenses, accommodation of trainers and rental of facilities provided by a qualifying company for the provision of training to the employees of a local manufacturer of not more than RM100,000.00.

 

Made 13 December 2003

[Perb. CR(8.09)248/40/7-304 Vol. 8(SK.3)(22); LHDN. 01/35/(S)/42/51/ 231-17.2; PN(PU2)80/XL]

 

DATO’ 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]

No comments:

Post a Comment