(Gazetted on 16 May, 2002)


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. 23) Order 2002.


     (2)  This Order shall be deemed to have effect from 20 October 2001.




2.  For the purpose of this Order —


     “luxury yacht ” means a light sailing vessel propelled by sails, steam, electricity or motive power other than oars equipped with —


(a)  bathrooms, galleys, saloons, cabins and staterooms, which has exotic and expensive furnishings and finishing; and

(b)  recreational facilities,


as verified by the Ministry of Transport Malaysia;


     “provision of services ”means provision of chartering services of a luxury yacht departing from and ending at any port in Malaysia.




3.  (1)  The Minister exempts a company resident in Malaysia from the payment of income tax in respect of the statutory income derived from the provisions of services approved by the Minister for a period of five consecutive years of assessment commencing from the year of assessment in the basis period in which the approval is in effect.


     (2) Nothing in subparagraph (1) shall absolve or be deemed to have absolved the company 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.


Keeping of separate accounts


4.  A company seeking exemption under subparagraph 3(1) shall maintain a separate account for the income derived from the provision of services.


Application of paragraphs 5 and 6 of Schedule 7A


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


Made 26 April 2002.


[Perb.0.3865/G/4 (SJ.2); LHDN 01/35/42/51/231-17.2; PN(PU 2 ) 80/XXXII]


On behalf and in the name of the Minister of Finance



Deputy Minister of Finance


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

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