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]
