INCOME TAX (DEDUCTIONS FOR APPROVED TRAINING) RULES 1992

INCOME TAX (DEDUCTIONS FOR APPROVED TRAINING) RULES 1992

 

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

 

RULE 1           CITATION AND COMMENCEMENT

 

1(1)   These Rules may be cited as the Income Tax (Deductions for Approved Training) Rules 1992 and except for rules 2(2) and 5 shall have effect for the year of assessment 1992 and subsequent years of assessment.

 

1(2)   Rules 2(2) and 5 shall be deemed to have effect for the years of assessment 1991 and subsequent years of assessment.

 

RULE 2           INTERPRETATION

 

2(1)   For purposes of these Rules –

 

“employee” means an employee of a company who is a citizen of Malaysia.

 

“expenditure incurred” in relation to a training programme conducted by a training institution shall be the amount paid by a company to that training institution in respect of a training programme;

 

“training institution” means a training institution approved by the Minister of Finance

 

History

Definitation of “training institution substitued by PU (A)       “training institution” means a

111/95, r.2, effective for year of assessment 1992 and           institution specified in the Schedule.

subsequent years of assessment.  Definition formerly

read:

 

2(2)   For purpose of rule 5 –

 

“hotel business” means the carrying on of a business in a hotel including a motel, chalet or hostel, where such business provides sleeping accommodation and may include providing of food, drinks and other services or facilities and the granting of concessions of any part of such hotel for purposes connected with and incidental to the promotion of tourism;

  

“tour operating business” has the meaning assigned to it under the Tourist Development Corporation (Tour Operating Business and Travel Agency Business) Regulations 1985.

 

 

RULE 3           DEDUCTIONS FOR MANUFACTURING COMPANY

 

3(1)   Subject to rules 7 and 8 for the purpose of ascertaining the adjusted income of a manufacturing company, which has commenced business, there shall be allowed as a deduction any expenditure incurred by such a company in training its employees for the purpose of upgrading and developing the employees’ craft, supervisory and technical skills or increasing the productivity or quality of its products under –

 

(a)     a training programme approved by the Malaysian Industrial Development Authority; or

(b)     a training programme conducted by a training institution.

 

3(2)   Subject to rules 7 and 8 for the purpose of ascertaining the adjusted income of a manufacturing company, which has not commenced business, for the year of assessment in which the gross income first arises, there shall be allowed as a deduction double the amount of any expenditure incurred by such a company during its precommencement period in training its employees for the acquisition of craft, supervisory or technical skills which will contribute directly to the future production of its products under –

 

(a)     a training programme approved by the Malaysian Industrial Development Authority; or

(b)     a training programme conducted by a training institution.

 

RULE 4           DEDUCTION FOR NON-MANUFACTURING COMPANY

 

4.      Subject to rules 7 and 8 for the purpose of ascertaining the adjusted income of a non-manufacturing company there shall be allowed as a deduction any expenditure incurred in training its employees under –

 

(a)     a training programme approved by the Minister of Finance or any agency appointed by the Minister of Finance; or

(b)     a training programme conducted by a training institution.

 

RULE 5           DEDUCTION FOR COMPANY CARRYING ON A HOTEL OR TOUR OPERATING BUSINESS

 

5.      Subject to rules 7 and 8 for the purpose of ascertaining the adjusted income of a company carrying on a hotel business in a hotel registered with the Tourist Development Corporation of Malaysia or a company carrying on a tour operating business registered with the Tourist Development Corporation of Malaysia, there shall be allowed as a deduction any expenditure incurred in training its employees under –

 

(a)     a training programme approved by the Minister of Culture, Arts and Tourism; or

(b)     a training programme conducted by a training institution.

 

 

RULE 6           DEDUCTION FOR TRAINING OF HANDICAPPED PERSONS

 

6.      Subject to rules 7 and 8 for the purpose of ascertaining the adjusted income of a company there shall be allowed as a deduction double the amount of any expenditure incurred in training any handicapped person registered with the Ministry of National Unity and Social Development, who is not an employee of the company under –

 

(a)     a training programme approved by the Minister of Finance, which is conducted in Malaysia; or

(b)     a training programme conducted by a training institution.

 

and the training programme is for the purpose of enhancing his employment prospect.

 

RULE 7           SATISFICATION OF CONDITIONS TO QUALITY FOR DEDUCTION

 

7.      In order to qualify for a deduction under these Rules, a company claiming the deduction shall –

 

(a)     in the case of an approved training programme, produce a letter of approval from the relevant approving authority; and

(b)     in the case of a training programme conducted by a training institution, produce a letter from the training institution certifying that the employee of the company has attended such training programme.

 

RULE 8           REVOCATION OF APPROVAL

 

8.      Where an approval of a training programme under rule 7(a) is at any time revoked, no deduction shall be allowed under rule 3(1)(a), 3(2)(a), 4(a), 5(a) or 6(a) for any expenditure incurred for such training for the year or years of assessment to which the revocation relates.

 

RULE 9           REVOCATION

 

9.      The Income Tax (Deductions for the Construction Industry) Rules 1981, the Income Tax (Deductions for Approved Training) Rules 1987 and the Income Tax (Deductions for Approved Training for Small Scale Companies) Rules 1990 shall be revoked with effect from the year of assessment 1992 and subsequent years of assessment.

 

 

SCHEDULED (DELETED)

 

History

Schedule deleted by PU (A) 111/95, r.3,                         (iii)      Mara Institute of Technology (ITM)

effective for year of assessment 1992 and                       (iv)       Malaysian Agricultural and Research

subsequent years of assessment.                                                 Development Institute (MARDI)

                                                                                        (v)        Forest Research Institute of Malaysia (FRIM)

Schedule formerly read:                                                  (vi)       Penang Skills Development Centre (PSDC)

“SCHEDULE          Rule 2(I)                                        

 

Training Insitutions                                                                                    

(i)  National Productivity Centre (NPC)                         (vii)      Institut Kemahiran Mara (IKM)

(ii) Standard and Industrial Research                            (viii)     The Centre for Instructor and

                Institute of Malaysia (SIRIM)                  Advanced Skill Training (CIAST) (for training programmes for a period not exceeding six months)

INCOME TAX (DEDUCTION OF PRE-COMMENCEMENT OF BUSINESS TRAINING EXPENSES) RULES 1996

INCOME TAX (DEDUCTION OF PRE-COMMENCEMENT OF

BUSINESS TRAINING EXPENSES) RULES 1996

 

PU (A) 160

 

IN exercise of the powers conferred by paragraph 154(1)(b) of the Income Tax Act 1967, the Minister makes the following rules :

 

RULE 1           CITATION AND COMMENCEMENT

 

1          These rules may be cited as the Income Tax (Deduction of Pre-commencement of Business Training Expenses) Rules 1996 and shall effect from the year of assessment 1996 and subsequent years of assessment.

 

RULE 2           INTERPRETATION

 

2       For the purposes of these Rules –

 

“potential employee” means an employee of a company who has been contracted as an employee prior to the commencement of the employer’s business; and

 

“qualifying training expenses” means expenditure incurred –

 

(a)     on the training of potential employees to impart basic skills to enable the company to commence its business;

 

(b)     within the period of one year prior to the commencement of business; and

 

(c)     being of the kind allowable under Section 33 of the Income Tax Act 1967

 

RULE 3           DEDUCTION FOR TRAINING EXPENSES OF POTENTIAL EMPLOYEES

 

3          Subject to rules 2 and 4, for the purposes of ascertaining the adjusted income of a company from a business under the Act, shall be allowed as a deduction, qualifying training expenses incurred by the company in respect of the training of potential employees prior to the commencement of its business.

 

RULE 4           EXEMPTION

 

4          Companies qualifying for a deduction under these Rules shall not include –

 

(a)        a company receiving training grants from the Governments; or

 

(b)        a small or medium scale company (not participating in the Human Resources Development Fund Scheme) claiming double deduction of training expenses under the Income Tax (Deduction for Approved Training) Rules 1992.

 

 

Made 23 March 1996

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.

Income Tax (Deduction for Promotion of Malaysia International

Income Tax (Deduction for Promotion of Malaysia International
Islamic Financial Centre) Rules 2009

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 Malaysia International Islamic Financial Centre) Rules 2009.

(2) These Rules shall have effect from year of assessment of 2011 until year of assessment 2015.

Deduction

2. (1) Subject to these Rules, for the purpose of ascertaining an adjusted income of a person as defined in paragraph 7(c) resident in Malaysia from its business for a basis period for a year of assessment, a deduction shall be allowed for any outgoings and expenses as described in subrule (2) which were incurred by that person in the basis period relating to his or it business for promoting Malaysia as an international Islamic financial centre.

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

(a) expenses incurred in respect of market research and feasibility study;

(b) the cost of preparing technical information to a person outside Malaysia relating to the type of services offered but excluding expenses for giving technical information to that person after purchase;

(c) expenses directly incurred for participating in an event, as defined in paragraph 7(b), other than expenses specified in paragraph (d);

(d) expenses by way of fares in respect of travel to a country outside Malaysia by a representative of a person for the purpose of any event and the actual expenses are subject to—

(i) a maximum of three hundred ringgit per day for accommodation; and

(ii) a maximum of one hundred and fifty ringgit per day for sustenance, for the whole period commencing from the representative’s departure from Malaysia and ending with his return to Malaysia for participating in the event;

(e) expenses incurred for the cost of maintaining sales office overseas provided that the sales office has been approved by the Malaysia International Islamic Financial Centre Secretariat;

(f) expenses verified by the Malaysia International Islamic Financial Centre Secretariat which is incurred for participating in an event other than those specified in paragraphs (c) and (d); and

(g) expenses incurred in respect of publicity and advertisement in any media outside Malaysia.

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

(4) No deduction shall be allowed under these Rules in respect of any outgoings and expenses—

(a) which are specified in subsection 39(1) of the Act; and

(b) which are incurred by a person which has a place of business and subject to tax in the country where such outgoings or expenses were incurred.

(5) Where the total amount of any outgoings and expenses which would have been allowed as a deduction under these Rules exceeds the amount which in the opinion of the Director General of Inland Revenue would reasonably be expected to be incurred in the ordinary course of business, the Director General of Inland Revenue may disallow that amount, to the extent of that excess, as a deduction under these Rules.

(6) For the purpose of subrule (1), where two basis periods overlap, the period common to both periods shall be deemed to fall in the first basis period only.

(7) In this rule—

(a) “event” means an event for promoting Malaysia as an international Islamic financial centre which is organized in the following forms:

(i) a Global Islamic Finance Forum organized by or on behalf of Malaysia International Islamic Financial Centre Secretariat; and

(ii) any exhibition, conference, promotional fair, seminar, summit, road show or meeting or any participation in relation to the Global Islamic Finance Forum which will be held inside or outside Malaysia as approved by the Malaysia International Islamic Financial Centre Secretariat;

(b) “Malaysia International Islamic Financial Centre Secretariat” means a secretariat established by the Central Bank of Malaysia pursuant to the Malaysia International Islamic Financial Centre initiatives; and

(c) “person” means—

(i) a person approved by the Malaysia International Islamic Financial Centre Secretariat who establishes, manages and owns a private higher educational institution registered with the Ministry of Higher Education that provides professional courses in Islamic finance;

(ii) a person licensed, registered or approved by the Securities Commission under the Capital Markets and Services Act 2007 [Act 671];

(iii) a person licensed under the Islamic Banking Act 1983 [Act 276];

(iv) a person licensed under the Banking and Financial Institutions Act 1989 [Act 372];

(v) a person registered under the Takaful Act 1984 [Act 312];

(vi) Bursa Malaysia Berhad and its related companies; or

(vii) such other persons as the Malaysia International Islamic Financial Secretariat may approve.


Made 23 November 2009

[Per.CR(8.09)294/6/4-9(SJ.9)(2010); LHDN.01/35/(S)/42/51/231-7.11;
PN(PU2)80/LVIII]

Dato’ Seri Haji Ahmad Husni bin Mohamad Hanadzlah
Second Minister of Finance

[To be laid before Dewan Rakyat pursuant to subsection 154(2) of the
Income Tax Act 1967]

Income Tax (Deduction for Investment in an Approved Consolidation of

Income Tax (Deduction for Investment in an Approved Consolidation of
Management of Smallholding and Idle Land Project) Rules 2009

In exercise of the powers conferred by paragraph 154(1)(b) of the Income Tax Act 1967 [Act 53], the Minister makes the following order:

Citation and commencement

1. (1) These rules may be cited as the Income Tax (Deduction for Investment in an Approved Consolidation of Management of Smallholding and Idle Land Project) Rules 2009.

(2) These Rules are deemed to have effect for the year of assessment 2002 and subsequent years of assessment subject to subsubparagraph 2(2)(b).

Deduction

2. (1) In ascertaining the adjusted income of a resident who is—

(a) an individual;

(b) a partnership established under the Partnership Act 1961 [Act 135];

(c) a co-operative society registered under any written law relating to the registration of co-operative societies in Malaysia; or

(d) a company established under the Companies Act 1965 [Act 125], and has a business source in Malaysia (hereinafter referred to as “resident”) investing in an approved consolidation of management of smallholding and idle land project (hereinafter referred to as the “approved consolidation project”) in the basis period for a year of assessment, there shall be allowed a deduction equivalent to the consolidation project, undertaken by other resident in the basis period for that year of assessment.

(2) To qualify for a deduction under this Rules—

(a) an application for such exemption shall be made by the resident who makes the investment to the Minister; and

(b) the application for approval to carry out the approved consolidation project is made by the resident will carry out such project the Minister responsible for such project on or after 21 October 2002 but not later than 31 December 2011.

(3) For the purpose of this rules, “investment” means an investment in the form of cash or holding of shares solely for the purpose of the approved consolidation project.

(4) Nothing in subparagraph (1) shall absolve or be deemed to absolve the resident who makes the investment from complying with any requirement to submit any return or statement of accounts or to furnish any other information under the provision of the Act.

Made 23 November 2009

[Perb. CR(8.09) 294/6/4-9(SJ.9)(2010); LHDN.01/35/(S)/42/51/231-17.11;
PN(PU2)80/LVIII]

Dato’ Seri Haji Ahmad Husni bin Mohamad Hanadzlah
Second Minister of Finance

[To be laid before the Dewan Rakyat pursuant to subsection 154(2) of the
Income Tax Act 1967]

Income Tax (Deduction for Expenditure on Registration of Patent and

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 Expenditure on Registration of Patent and Trade Mark) Rules 2009.

(2) These Rules shall have effect from the year of assessment 2010 until the year of assessment 2014.

Interpretation

2. In these Rules—

“trade mark” has the same meaning assigned to it under the Trade Marks Act 1976 [Act 175];

“patent” means an exclusive right granted for an invention under the Patents Act 1983 [Act 291];

“company” has the same meaning assigned to it under the Companies Act 1965 [Act 125];

“related company”, in relation to a company, means a company—

(a) the operations of which are or can be controlled, either directly or indirectly, by the first-mentioned company;

(b) which controls or can control, either directly or indirectly, the operations of the first-mentioned company; or

(c) the operations of which are or can be controlled, either directly or indirectly, by a person who control or can control, either directly or indirectly, the operations of the first-mentioned company.

Deduction

3. (1) For the purpose of ascertaining the adjusted income of a qualifying person as specified in subrule (4) from his business for the basis period for a year of assessment, there shall be allowed a deduction of an amount equal to the qualifying expenditure incurred by the qualifying person on the registration of trade mark or patent in Malaysia, as the case may be.

(2) The qualifying expenditure incurred by a qualifying person referred to in subrule (1) shall be deemed to have been incurred in the basis period for a year of assessment in which the qualifying person obtained the certificate of registration of a trade mark or the certificate of grant of a patent, as the case may be.

(3) The qualifying expenditure referred to in these Rules shall be the following:

(a) in respect of a trade mark under the Trade Mark Act 1976—

(i) an application for registration of a mark;

(ii) a certificate of registration of a trade mark; and

(iii) fee for service of an agent registered and authorized to undertake trade mark registration; and

(b) in respect of a patent under the Patents Act 1983—

(i) an application for grand of a patent;

(ii) a request for substantive examination or modified substantive examination;

(iii) a certificate of grant of a patent; and

(iv) fee for service of an agent registered and authorized to undertake patent registration.

(4) A qualifying person under these Rules shall be as follows:

(a) a company which has a paid-up capital in respect of ordinary share of two million and five hundred thousand ringgit and less at the beginning of the basic period for a year of assessment but shall not include—

(i) a company where fifty per cent of its paid up capital in respect of ordinary share of the company is directly or indirectly owned by a related company;

(ii) a company where fifty per cent of the paid-up capital in respect of ordinary shares of a related company is directly or indirectly owned by the first mentioned company; and

(iii) a company where fifty per cent of the paid-up capital in respect of ordinary shares of the company and a related company is directly or indirectly owned by another company;

(b) an enterprise in the manufacturing industry, manufacturing related services industry and agro-based industry, resident in Malaysia, which at the end of the basis period for a year of assessment—

(i) has not more than one hundred and fifty full-time employees; or

(ii) has achieved annual sales of not more than twenty-five million ringgit; and

(c) an enterprise in the services industries, primary agriculture, information and communication technology industry, resident in Malaysia, which at the end of the basis period for a year of assessment—

(i) has not more than fifty full-time employees; or

(ii) has achieved annual sales of not more than five million ringgit.

Made 23 November 2009

[Perb. CR(8.09) 294/6/4-9(SJ.9)(2010); LHDN.01/35/(S)/42/51/231-17.11;
PN(PU2)80/LVIII]

D ato’ Seri Haji Ahmad Husni bin Mohamad Hanadzlah
Second Minister of Finance

[To be laid before the Dewan Rakyat pursuant to subsection 154(2) of the
Income Tax Act 1967]

Income Tax (Deduction for Cost of Preparation of Corporate

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 Preparation of Corporate Knowledge-Based Master Plan) Rules 2009.

(2) These Rules are deemed to have come into operation from the year of assessment 2003 and subsequent years of assessment subject to rule 3.

Application

2. (1) These Rules apply to a company—

(a) incorporated under the Companies Act [Act 125] and is resident in Malaysia; and

(b) approved by the Minister to participate in a strategic knowledge-intensive activity—

(i) based on the corporate knowledge based master plan referred to in subrule 3(1); and

(ii) which the application for participation in the activity is made by the company to the Minister on or after 21 September 2002 but not later than 31 December 2011.

(2) The strategic knowledge-intensive activity referred to in paragraph (1)(b) shall be a promoted activity under the Promotion of Investment Act 1986 [Act 327] which is approved by the Minister charged with such responsibility under such Act.

Deduction

3. (1) In ascertaining the adjusted income of a company referred to in subrule 2(1) from its business for the basis period for a year of assessment in the basis period for a year of assessment, there shall be allowed as deduction the cost incurred by that company in the basis period for a year of assessment for the preparation of the corporate knowledge-based master plan which shall be the corporate strategic knowledge plan used for the business of a company verified by the Malaysian Industrial Development Authority established under the Malaysian Industrial Development Authority (Incorporation) Act 1965 [Act 397].

(2) For the purposes of subrule (1), the cost incurred shall be deemed to be incurred in the basis period for a year of assessment in which the corporate knowledge-based master plan is implemented.

(3) The corporate knowledge-based master plan referred to in these Rules shall be implemented within two years from the date of verification by the Malaysian Industrial Development Authority as required under subrule (1).

(4) Any cost incurred by the company in the preparation of subsequent corporate knowledge-based master plan shall only be allowed as a deduction after a period of three years from the end of the basis period for a year of assessment where the company is deemed to have incurred the cost under subrule (2).

Made 23 November 2009

[Perb. CR(8.09) 294/6/4-9(SJ.9)(2010); LHDN. 01/35/(S)/42/51/231-17.11;
PN(PU2)80/LVIII]

Dato’ Seri Haji Ahmad Husni bin Mohamad Hanadzlah
Second Minister of Finance

[To be laid before the Dewan Rakyat pursuant to subsection 154(2) Income
Tax Act 1967]

Income Tax (Deduction for Expenditure on Issuance of Islamic

In exercise of the powers conferred by paragraph 154(1)(b) of the Income Tax 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 Expenditure on Issuance of Islamic Securities) Rules 2009.

(2) These Rules shall have effect from the year of assessment 2011 until the year of assessment 2015 in respect of the approval for the issuance of Islamic securities under paragraph 2(1)(a).

(3) These Rules shall have effect from the year of assessment 2010 until the year of assessment 2015 in respect of the approval for the issuance of Islamic securities under paragraph 2(1)(b).

Deduction

2. (1) For the purpose of ascertaining the adjusted income of a company resident in Malaysia and a company incorporated under the Offshore Companies Act 1990 [Act 441], from its business for the basis period for a year of assessment, there shall be allowed a deduction of an amount equal to the expenditure incurred on the issuance of Islamic securities approved, as the case may be, by—

(a) the Securities Commission; or

(b) the Labuan Offshore Financial Services Authority established under section 3 of the Labuan Offshore Financial Services Authority Act 1996 [Act 545].

(2) The deduction referred to in subrule 2(1) shall be pursuant to the principle of mudharabah, musyakarah, ijarah or istisna’ or any other Syariah principle approved by the Minister.

Made 23 November 2009

[CR(8.09)294/6/4-9(SJ.9)(2010); LHDN.01/35/(S)/42/51/231-17.11;
PN(PU2)80/LVIII]

D ato’ Seri Haji Ahmad Husni bin Mohamad Hanadzlah
Second Minister of Finance

[To be laid before the Dewan Rakyat pursuant to subsection 154(2) of the
Income Tax Act 1967]

Income Tax (Deduction on Expenditure for Establishment of an Islamic Stock Broking Business)(Amendment) Rules 2009

Income Tax (Deduction on Expenditure for Establishment of an Islamic Stock Broking Business)(Amendment) Rules 2009

In exercise of the powers conferred by paragraph 154(1)(b) of the Income Tax 1967 [Act 53], the Minister makes the following rules:

Citation and commencement

1. (1) These rules may be cited as the Income Tax (Deduction on Expenditure for Establishment of an Islamic Stock Broking Business) (Amendment) Rules 2009.

(2) These Rules come into operation on 1 January 2010.

Amendment of rule 4

2. Subrule 4(1) of the Income Tax (Deduction on Expenditure for Establishment of an Islamic Stock Broking Business) Rules 2007 [P.U. (A) 65/2007] is amended by substituting for the words “31 December 2009” the words “31 December 2015”.

Made 26 October 2009

[Perb.CR(8.09)294/6/4-9(SJ. 9) (2010); LH DN.01/35/(S)/42/51/231-17.11;
PN (PU2)80/LVII]

Dato’ Seri Haji Ahmad Husni bin Mohd Hanadzlah

Second Minister of Finance

[To be laid before the Dewan Rakyat pursuant to subsection 154(2) of the
Income Tax Act 1967]

Income Tax (Deduction for Benefit and Gift from Employer to Employee) Rules 2009

Income Tax (Deduction for Benefit and Gift from Employer to Employee) Rules 2009

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 Benefit and Gift from Employer to Employee) Rules 2009.

(2) These Rules shall have effect from the year of assessment 2008 and subsequent years of assessment except for paragraph 2(1)(b).

(3) Paragraph 2(1)(b) shall have effect from the year of assessment 2008 until the year of assessment 2010.

Deduction

2. In ascertaining the adjusted income of a person resident in Malaysia from its business in the basis period for a year of assessment, there shall be allowed as deduction expenses incurred by such person in respect of the following benefit and gift to his employees:

(a) payment of monthly bill for subscription of broadband, fixed line telephone, mobile phone or pager issued in the name of the employee or in the name of such person as the employer;

(b) travelling allowance, petrol card or petrol allowance provided for employees from home to place of work and from place of work to home; and

(c) personal digital assistant, telephone, mobile phone or pager.


Made 6 April 2009

[Perb. CR(8.09)294/6/4-9 (Sj. 9)(2009)(Sk. 7); LHDN 01/35/(S)/42/51/231-17.10; PN(PU2)80/LVI]

Tan Sri Nor Md bin Yakcop
Second Minister of Finance

[To be laid before the Dewan Rakyat pursuant to subsection 154(2) of the Income Tax Act 1967]

Income Tax (Deduction for Expenses Relating to Remuneration of Employee) Rules 2009

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 Expenses relating to Remuneration of Employee) Rules 2009.

(2) These Rules have effect for the year of assessment 2009 and subsequent years of assessment.


Interpretation

2. In these Rules—

“employee” means an employee as described in subrule 4(2);

“remuneration” means any wages, salary, or allowance in respect of having or exercising employment.


Application

3. These Rules shall apply to a person who is a resident in Malaysia who employs an employee on full-time basis between the period of 10 March 2009 until 31 December 2010.


Deduction

4. (1) Subject to these Rules, in ascertaining the adjusted income of a person who is a resident in Malaysia from its business in the basis period for a year of assessment, there shall be allowed to that person a further deduction equal to the amount of expenses incurred and allowable under section 33 of the Act in respect of the remuneration paid to his employee.

(2) The deduction under subrule (1) apply only in respect of an employee—

(a) who is a citizen and resident in Malaysia;

(b) whose employment with a previous employer has been terminated pursuant to a separation scheme or retrenchment, on or after 1 July 2008; and

(c) whose termination of employment has been registered with the Director General of Labour, the Ministry of Human Resources.

(3) For the purposes of subrule (1), the amount of the further deduction shall not exceed a maximum amount of ten thousand ringgit for each month in respect of each employee for a maximum period of twelve consecutive months commencing from the first month the employee is employed.


Non-application

5. (1) These Rules shall not apply where—

(a) the employee is employed by a person to replace a former employee of that person for the purpose of carrying out the same or similar function of that former employee;

(b) the former employer and the present employer are associates as defined in section 139 of the Act;

(c) the former employer and the present employer one of whom has control over the other; or

(d) the former employer and the present employer both of whom are controlled by another person.

(2) In this rule, a person has control—

(a) where the person has the power to exercise or is able to exercise or is entitled to acquire, control (whether direct or indirect) over the affairs of another;

(b) where the person has the power to possess or acquire the greater part of the share capital or voting power in another; or

(c) in relation to a partnership, where the person has the right to a share of more than one-half of the assets of the partnership, or to more than one-half of the divisible profits of the partnership.


Made 10 March 2009
[Perb.0.3865/410;LHDN 01/35/(S)/42/51/231-17.11;PN(PU2)80/LIV]

Tan Sri Nor Md bin Yakcop
Second Minister of Finance

[To be laid before the Dewan Rakyat pursuant to subsection 154(2) of the Income Tax Act 1967]