INCOME TAX (DEDUCTION) OF INCORPORATION EXPENSES RULES 1974

INCOME TAX (DEDUCTION) OF INCORPORATION EXPENSES RULES 1974

 

PU (A) 134

 

IN exercise of the powers conferred by section 154(1)(b) and 33(1)(d) of the Income Tax Act, 1967 the Minister of Finance hereby makes the following rules:

 

RULE 1           CITATION AND COMMENCEMENT

 

1   These rules may be cited as the Income Tax (Deduction of Incorporation Expenses) Rules, 1974 and shall have effect for the year of assessment 1974 and subsequent years of assessment.

 

RULE 2           DEDUCTION OF INCORPORATION EXPENSES

 

2   In case of any company incorporated in Malaysia on or after the first day of January, 1973 and having an authorised capital of not exceeding two hundred an fifty thousand dollars, for the purpose of ascertaining under section 33 of the Act the adjusted income of that company from a source of it consisting of a business for the basis period for a year of assessment, there shall be allowed as a deduction from the gross income of that company that source all expenses incurred by that company in connection with the incorporation of that company.

 

RULE 3           TYPES OF EXPENSES ALLOWABLE

 

3   The expenses referred to in Rule 2 shall be the following-

 

(a)   the cost of preparing and printing the Memorandum, the Articles and the Prospectus, and of circulating and advertising the Prospectus;

(b)   the cost of registering the company and the statutory documents, together with fees and stamp duties payable thereon;

(c)   the cost of drawing up the preliminary contracts and stamp duties thereon;

(d)   the cost of printing and stamping debentures (if any) and of share certificates and letters of allotment;

(e)   the cost of the seal of the company; and

(f)    underwriting commission

 

 

Made this 19th day of March, 1974.