INCOME TAX (DEDUCTION FOR INFORMATION TECHNOLOGY RELATED EXPENDITURE) RULES 2000

INCOME TAX (DEDUCTION FOR INFORMATION TECHNOLOGY RELATED EXPENDITURE) RULES 2000

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 Information Technology-Related Expenditure) Rules 2000.
(2) These Rules shall have effect for the year of assessment 2000 in respect of the basis period ending in the year 2000 (current year basis) and subsequent years of assessment.
Interpretation
2. In these Rules, "information technology-related expenditure" means any operating expenditure on the use of information technology for the improvement of management or production processes.
Deduction
3. For the purposes of ascertaining the adjusted income of a person from his business for the basis period for a year of assessment, there shall be allowed a deduction in respect of any information technology-related expenditure incurred by him in that basis period for that business.
Non-application
4. These Rules shall not apply to-
(a) any expenditure allowable under paragraph 33(1) (a) , 33(1) (b) or 33(1) (c) of the Act;
(b) qualifying plant expenditure which has been granted the initial and annual allowances under the Income Tax (Qualifying Plant Allowances) (Computers and Information Technology Equipment) Rules 1998 [P. U. (A) 187/98];
(c) qualifying plant expenditure which has been granted the initial and annual allowances under the Income Tax (Qualifying Plant Allowances) (Cost of Provision of Computer Software) Rules 1999 [P. U. (A) 272/ 99].

Made 26 January 2000.
[Perb. R(8. 20) 116/1-138 (2000) (SK. 13) ; LHDN. 01/35/(S) 142/51/82-35. 1; PN(PU2) 80/XXVII]

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 154(2) of the Income Tax Act 1967)