INCOME TAX (DEDUCTION FOR COST OF DEVELOPING WEBSITE) RULES 2003 [P.U. (A) 101]

INCOME TAX (DEDUCTION FOR COST OF DEVELOPING WEBSITE)

RULES 2003 [P.U. (A) 101]

(Gazetted on 10 April, 2003)

 

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 Cost of Developing Website) Rules 2003.

 

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

 

Deduction

 

2. (1) Subject to these Rules, for the purpose of ascertaining under the Act the adjusted income from a business of a person resident in Malaysia who has incurred the cost of developing a website which is electronic commerce enabled for the basis period for a year of assessment, there shall be allowed a deduction of an amount equal to one-fifth of that cost for that year of assessment and for each of the four following years of assessment.

 

(2) For the purpose of subrule (1), “electronic commerce enabled” means a system of processes where transactions involving the transfer of information, products, services or payments can be made through electronic networks for an electronically confirmed consideration as verified by the Malaysian Communications and Multimedia Commission.

 

Non-application

 

3. These Rules shall not apply to qualifying plant expenditure which has been granted the initial and the annual allowances with respect to—

 

(a) computers and information technology equipment under the Income Tax (Qualifying Plant Allowances) (Computers and Information Technology Equipment) Rules 1998 [P.U. (A) 187/98]; and

 

(b) the provision of computer software under the Income Tax (Qualifying Plant Allowances) (Cost of Provision of Computer Software) Rules 1999 [P.U. (A) 272/99].

 

Revocation

 

4. The Income Tax (Deduction for Cost of Developing Website) Rules 2002 [P.U. (A) 447/02] are revoked.

 

Made 25 March 2003

[Perb. CR(8.09)248/40/7-304 Vol. 8(SK. 2); LHDN. 01/35/(S)/42/51/231-17.2; PN(PU²)80/XXXIV]

 

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]