INCOME TAX (EXEMPTION) (NO. 9) ORDER 2002 [P. U. (A) 57]
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.9) Order 2002.
(2) This Order shall have effect from the year of
assessment 2002.
Interpretation
2. For the purpose of this
Order —
“value of increased exports ” means the
difference of the value of the qualifying services exported in the basis period
and that of the immediately preceding basis period;
“foreign client ” means a company, a
partnership, an organization or a cooperative society which is incorporated or
registered outside Malaysia or an individual who is a non-Malaysian citizen and
does not hold a Malaysian work permit or an individual who is a non-resident
Malaysian citizen living abroad;
“qualifying services ” means services specified
in the Schedule which are provided to foreign clients, from Malaysia, and in
relation to the provisions of private health care and private education, the
services to be provided to foreign clients are to be provided either in
Malaysia, or provided from Malaysia.
Exemption
3. The Minister exempts a
person resident in Malaysia from the payment of income tax in respect of income
derived from the export of qualifying services specified in the Schedule in the
basis period for a year of assessment, in an amount and manner prescribed in
paragraph 4.
Amount
of income to be exempt
4. (1) The amount of income referred to in paragraph
3 shall be equal to 50 per cent of the value of increased exports.
(2) Where an amount of income equivalent to 50
per cent of the value of increased exports has been determined for a year of
assessment, so much of the statutory income of the business of that person for
that year of assessment as is equal to that value of increased exports (or to
the aggregate amount of any such value of increased export, as the case may be)
but not exceeding 70 per cent of the statutory income shall be exempted from
tax.
Insufficiency
of income
5. Where by reason of the
restriction of 70 per cent of the statutory income or of an insufficiency or
absence of statutory income from a business of the person for the basis period
for a year of assessment,effect cannot be given or cannot be given in full to
the amount of the determined value of increased exports to which the person is
entitled under paragraph 4 for that year of assessment, then so much of that
amount or the aggregate amount as cannot be given for that year shall be given
to the person for the first subsequent year of assessment for the basis period
for which there is statutory income from that business, and for subsequent
years of assessment until the person has received the whole of that amount or
the aggregate amount to which the person is so entitled.
Non-application
6. This Order shall not
apply to a person —
(a) for the period during which the person has been granted any
incentives (except for deductions for promotion of exports) under the Promotion
of Investments Act 1986 [Act 327];
(b) for the period during
which the person has been granted investment allowance under Schedule 7B of the
Act; and
(c) for the period during
which the person has been granted an exemption under paragraph 127(3)(b) of
the Act in respect of an approved service project.
Application
of paragraphs 5 and 6 of Schedule 7A
7. Paragraphs 5 and 6 of Schedule
7A to the Act shall apply mutatis mutandis to the amount of income
exempt under paragraph 4.
SCHEDULE
Qualifying
services
1. Legal.
2. Accounting.
3. Architecture.
4. Marketing.
5. Business consultancy.
6. Office services.
7. Construction management.
8. Building management.
9. Plantation management.
10. Private health care.
11. Private education.
12. Publishing services.
13. Information technology and communication
(ICT) services.
14. Engineering services.
15. Printing services
16. Local franchise services
Made
24 January 2002.
[Perb.
0.3865/73 (SJ9); LHDN. 01/35/(S)/42/51/231-19; PN(PU2 ) 80/XXXI]
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 ]
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