INCOME
TAX (EXEMPTION)(NO. 5) ORDER 2003 [P.U. (A) 152]
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 cited as the Income Tax (Exemption) (No. 5)Order 2003.
(2)
This Order is deemed to have come into operation on 20 October 2001.
Interpretation
2. In this Order, unless the context
otherwise requires —
“website
in Malaysia ” means a website that is hosted to server in Malaysia;
“chargeable income ” means statutory
income of an approved offshore trading company from an offshore trading
reduced by any deduction to be made pursuant to subsection 43(2)of the Act
relating to an offshore trading;
“offshore trading ” means buying from
and selling to non-residents through a website in Malaysia of foreign goods for consumption outside Malaysia
including goods brought into Malaysia for the purpose of redistribution outside Malaysia;
“approved offshore trading company”
means a company which carries on an offshore trading and is approved by the Minister as eligible for
exemption.
Exemption
3. (1)
The Minister exempts an approved offshore trading company from the
payment of income tax in
respect of the chargeable income
for a period of five consecutive years of assessment commencing from the year of assessment in which the
approval is given in the basis period of that year of assessment.
(2)
The amount of chargeable income exempted under subparagraph (1) derived
in the basis period for a year of assessment shall be determined in
accordance with the following formula:
A -[(10/B x A)@B ]
where
A
is the chargeable income; and
B is the rate of tax applicable to an
approved offshore trading company for a year of assessment.
(3)
Notwithstanding subparagraph (2),the chargeable income which is not
exempted from payment of income tax shall be determined in accordance
with the following formula:
10/B x A
where is the chargeable income; and
B is the rate of tax applicable to an approved offshore trading company
for a year of assessment.
Maintaining
separate accounts
4. An
approved offshore trading company shall maintain a separate account for the
income derived from carrying
on an offshore trading.
Application
of paragraphs 5 and 6 of Schedule 7A
5. Paragraphs
5 and 6 of Schedule 7 to the Act shall apply, mutatis mutandis, to the amount
of chargeable income
exempted under subparagraph 3(2).
Made
13 May 2003
[Perb.CR(8.09)248/40/7-304
Vol.8 (SK.5);LHDN.01/35/(S)/42/51/231-17.2; PN(PU 2 )80/XXXVII ]
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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