INCOME TAX (DEDUCTION FOR PROMOTION OF EXPORTS) RULES 2002 [P.U.(A) 115]

INCOME TAX (DEDUCTION FOR PROMOTION OF EXPORTS) RULES 2002 [P.U.(A) 115]

(Gazetted on 28 March, 2002)

 

 

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 Promotion of Exports) Rules 2002.

 

      (2)   These Rules shall have effect from the year of assessment 2002.

 

Interpretation

 

2.   In these Rules,unless the context otherwise requires —

 

      “virtual trade show ” means an international virtual trade show as verified by the Malaysia External Trade Development Corporation (MATRADE);

 

      “trade portal ” means a trade portal for the promotion of local products as verified by the Malaysia External Trade Development Corporation (MATRADE).

 

Company eligible for deduction

 

3.   Every company resident in Malaysia for the basis year for a year of assessment shall be eligible for the deduction

under these Rules for that year of assessment.

 

Deduction

 

4.   (1)   Subject to these Rules,for the purpose of ascertaining under the Act the adjusted income of a company from its business for the basis period for a year of assessment, there shall be allowed as a deduction any outgoings and expenses

of the kind described in subparagraph (2) which were incurred —

 

(a)   by the company during that basis period with respect of the business; and

 

(b)   primarily and principally for the purpose of promoting the exports.

 

(2)  The outgoings and expenses referred to in subparagraph (1) are —

 

(a)   expenses incurred in respect of participation in a virtual trade show;

 

(b)   expenses incurred in respect of participation in a trade portal; and

 

(c)   costs of maintaining warehouse overseas.

 

(3)  The deduction allowed under these Rules shall be in addition to any deduction allowable under section 33 of the Act.

 

(4)  No deduction shall be allowed under these Rules in respect of any outgoings,expenses or other payments which          are —

 

(a)   of the kind mentioned in subsection 39(1) of the Act; or

 

(b)   incurred by a company having a place of business and subject to tax in the country where such outgoings or expenses were incurred.

 

(5)  Where the amount of any outgoings and expenses, the whole of which would have been allowable as a deduction under these Rules, exceed the amount which in the opinion of the Director General would reasonably be expected to be incurred in the ordinary course of the business with respect to the outgoings and expenses that were incurred, the Director General may not allow the excess amount as a deduction under these Rules.

 

Made 13 March 2002.

[Perb.0.3865/73 (SJ.45); LHDN.01/12/35/(S)/42/51/82-11; PN(PU²)80/XXXII]

 

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]