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)
