Income Tax (Exemption) (No. 7) Order 2009
In exercise of the powers conferred by paragraph 127(3)(b) of the Income Tax Act 1967 [Act 53], the Minister makes the following order:
Citation and commencement
1. (1) This order may be cited as the Income Tax (Exemption) (No. 7) Order 2009.
(2) This Order is deemed to have come into operation on 24 October 2009 and shall have effect subject to paragraph 3.
Interpretation
2. In this Order—
“company” means—
(a) a bank licensed under the Banking and Financial Institutions Act 1989 [Act 372]; or
(b) a bank licensed under the Islamic Banking Act 1983 [Act 276]; “investee company” means a company where at least twenty percent of its issued share capital is directly owned by a company referred to in subparagraph 3(1).
Exemption
3. (1) The Minister exempts for five consecutive years of assessment (hereinafter referred to as “exempt period”) a company resident in Malaysia from the payment of income tax in respect of statutory income in relation to sources of income derived from its branch or investee company—
(a) which carries or will carry on banking, Islamic banking or any part of banking or Islamic banking; and
(b) which is located outside Malaysia.
(2) To qualify for an exemption under this Order—
(a) an application for such exemption shall be made by the company;
(b) the application under subsubparagraph (a) is received by the Central Bank on or after 24 October 2009 but not later than 31 December 2015; and
(c) the branch or investee company referred to in subparagraph 3(1) shall commence the banking, Islamic banking or any part of the banking or Islamic banking business within two years from the date of approval issued by the Central Bank.
(3) The commencement of the exempt period referred to in subparagraph 3(1) shall be determined by the company but shall not be later than the third year of assessment the branch or investee company commences the banking, Islamic banking or any part of the banking or Islamic banking business.
(4) Nothing in subparagraph 3(1) shall absolve or be deemed to have absolved the company from complying with any requirement to submit any return or statement of accounts or to furnish any other information under the provisions of the Act.
Application of paragraphs 5 and 6 Schedule 7A
4. Paragraphs 5 and 6 of Schedule 7A to the Act shall apply, mutatis mutandis, to the amount of income exempted under subparagraph 3(1).
Separate account
5. The branch or investee company shall maintain a separate account for the income exempted from tax under subparagraph 3(1).
Exemption
6. (1) Where a company has been granted an exemption under the Income Tax (Exemption) (No. 16) Order 2007 [P.U. (A) 278/2007], such exemption shall continue to remain in full force and effect and that Order shall be deemed to continue to apply for the remaining years of assessment of the exempt period of that company.
(2) In relation to a company which has been granted approval by the Central Bank on or before 23 October 2009 to carry on banking, Islamic banking or any part of banking or Islamic banking business under the provisions of the Order referred to in subparagraph 6(1) but has not commenced the business, the exempt period of the company shall commence in accordance with the provisions of this Order.
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 (Exemption) (No. 8) Order 2009
Income Tax (Exemption) (No. 8) Order 2009
In exercise of the powers conferred by paragraph 127(3)(b) of the Income Tax Act 1967 [Act 53], the Minister makes the following order:
Citation and commencement
1. (1) This order may be cited as the Income Tax (Exemption) (No. 8) Order 2009.
(2) This Order shall have effect from the year of assessment 2009 and subsequent years of assessment subject to paragraph 3 and subsubparagraph 5(3)(b).
Interpretation
2. In this Order—
“Board of Architects Malaysia” means a board which is established under section 3 of the Architects Act 1967 [Act 117];
“person” means a person resident in Malaysia and with respect to a company, refers to a company incorporated under the Companies Act 1965 [Act 125];
“qualifying expenditure” means an additional expenditure incurred in relation to construction of a building, alteration, renovation, extension or improvement of an existing building.
Application
3. This Order shall apply to a person who has obtained a green building index certificate issued by the Board of Architects Malaysia from 24 October 2009 until 31 December 2014.
Non-application
4. This Order shall not apply to a person who has been granted with investment tax allowance or pioneer status under the Promotion of Investments Act 1986 [Act 327] in respect of qualifying expenditure incurred on activity for generation of renewable energy or for conservation of energy.
Exemption
5. (1) The Minister exempts a person in the basis period for a year of assessment from the payment of income tax in respect of the statutory income which is equal to the amount of qualifying expenditure incurred by that person for the purpose of obtaining a green building index certificate issued by the Board of Architects Malaysia.
(2) The qualifying expenditure incurred by the person referred to in subparagraph (1), prior to the issuance of a green building index certificate—
(a) shall be deemed to have been incurred on the day the green building index certificate is issued; and
(b) may be claimed in the basis period for a year of assessment when the person commences to carry on with his business at the building which is issued with that green building index certificate.
(3) Where by reason of an absence or insufficiency of statutory income of a person from his business for the basis period for a year of assessment—
(a) an exemption shall not be given or shall not be given in full to the amount to which the person is entitled under subparagraph (1) for that year of assessment; and
(b) the amount, which shall not be given exemption or shall not be given exemption in full as referred to in subsubparagraph (a) for that year of assessment, shall be exempted for the first subsequent year of assessment for the basis period for which there is statutory income from that business, and for subsequent years of assessment until the whole of the amount to which the person is so entitled is exempted.
(4) Nothing in subparagraph (1) shall absolve or be deemed to have absolved the person 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.
Qualifying expenditure under a hire-purchase agreement
6. (1) Where the person referred to in subparagraph 5(1) becomes a party of a hire-purchase agreement to purchase an asset for the purpose of his business which is being conducted at a building which is issued to it with the green building index certificate and incurs a qualifying expenditure, the person shall be entitled for an exemption in accordance with subparagraph 5(1).
(2) The amount of an exemption to be given in respect of the qualifying expenditure incurred by the person for the basis period for a year of assessment shall be—
(a) the capital portion of any instalment payment made by the person under a hire-purchase agreement; or
(b) where there is more than one payment, the aggregate of those payments, made by the person under a hire-purchase agreement.
(3) For the purpose of this Order, the person shall be deemed to be the owner of the asset purchased under a hire-purchase agreement.
Capital allowance and industrial building allowance
7. For the purpose of this Order, a person who incurs a qualifying expenditure referred to in subparagraph 5(1) shall only be entitled to make a claim for a capital allowance and industrial building allowance under Schedule 3 of the Act if the qualifying expenditure is a qualifying capital expenditure under that Schedule.
Certification by the Board of Architects Malaysia
8. The Board of Architects Malaysia may certify any other expenditure incurred, for the purpose referred to in subparagraph 5(1), to be the qualifying expenditure.
Application of paragraphs 5 and 6 of Schedule 7A
9. Paragraphs 5 and 6 of Schedule 7A of the Act shall apply, mutatis mutandis, to the amount of statutory income exempted from income tax which is derived from the activity referred to in subparagraph 5(1).
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 127(4) of the
Income Tax Act 1967]
In exercise of the powers conferred by paragraph 127(3)(b) of the Income Tax Act 1967 [Act 53], the Minister makes the following order:
Citation and commencement
1. (1) This order may be cited as the Income Tax (Exemption) (No. 8) Order 2009.
(2) This Order shall have effect from the year of assessment 2009 and subsequent years of assessment subject to paragraph 3 and subsubparagraph 5(3)(b).
Interpretation
2. In this Order—
“Board of Architects Malaysia” means a board which is established under section 3 of the Architects Act 1967 [Act 117];
“person” means a person resident in Malaysia and with respect to a company, refers to a company incorporated under the Companies Act 1965 [Act 125];
“qualifying expenditure” means an additional expenditure incurred in relation to construction of a building, alteration, renovation, extension or improvement of an existing building.
Application
3. This Order shall apply to a person who has obtained a green building index certificate issued by the Board of Architects Malaysia from 24 October 2009 until 31 December 2014.
Non-application
4. This Order shall not apply to a person who has been granted with investment tax allowance or pioneer status under the Promotion of Investments Act 1986 [Act 327] in respect of qualifying expenditure incurred on activity for generation of renewable energy or for conservation of energy.
Exemption
5. (1) The Minister exempts a person in the basis period for a year of assessment from the payment of income tax in respect of the statutory income which is equal to the amount of qualifying expenditure incurred by that person for the purpose of obtaining a green building index certificate issued by the Board of Architects Malaysia.
(2) The qualifying expenditure incurred by the person referred to in subparagraph (1), prior to the issuance of a green building index certificate—
(a) shall be deemed to have been incurred on the day the green building index certificate is issued; and
(b) may be claimed in the basis period for a year of assessment when the person commences to carry on with his business at the building which is issued with that green building index certificate.
(3) Where by reason of an absence or insufficiency of statutory income of a person from his business for the basis period for a year of assessment—
(a) an exemption shall not be given or shall not be given in full to the amount to which the person is entitled under subparagraph (1) for that year of assessment; and
(b) the amount, which shall not be given exemption or shall not be given exemption in full as referred to in subsubparagraph (a) for that year of assessment, shall be exempted for the first subsequent year of assessment for the basis period for which there is statutory income from that business, and for subsequent years of assessment until the whole of the amount to which the person is so entitled is exempted.
(4) Nothing in subparagraph (1) shall absolve or be deemed to have absolved the person 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.
Qualifying expenditure under a hire-purchase agreement
6. (1) Where the person referred to in subparagraph 5(1) becomes a party of a hire-purchase agreement to purchase an asset for the purpose of his business which is being conducted at a building which is issued to it with the green building index certificate and incurs a qualifying expenditure, the person shall be entitled for an exemption in accordance with subparagraph 5(1).
(2) The amount of an exemption to be given in respect of the qualifying expenditure incurred by the person for the basis period for a year of assessment shall be—
(a) the capital portion of any instalment payment made by the person under a hire-purchase agreement; or
(b) where there is more than one payment, the aggregate of those payments, made by the person under a hire-purchase agreement.
(3) For the purpose of this Order, the person shall be deemed to be the owner of the asset purchased under a hire-purchase agreement.
Capital allowance and industrial building allowance
7. For the purpose of this Order, a person who incurs a qualifying expenditure referred to in subparagraph 5(1) shall only be entitled to make a claim for a capital allowance and industrial building allowance under Schedule 3 of the Act if the qualifying expenditure is a qualifying capital expenditure under that Schedule.
Certification by the Board of Architects Malaysia
8. The Board of Architects Malaysia may certify any other expenditure incurred, for the purpose referred to in subparagraph 5(1), to be the qualifying expenditure.
Application of paragraphs 5 and 6 of Schedule 7A
9. Paragraphs 5 and 6 of Schedule 7A of the Act shall apply, mutatis mutandis, to the amount of statutory income exempted from income tax which is derived from the activity referred to in subparagraph 5(1).
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 127(4) of the
Income Tax Act 1967]
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]
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]
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]
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]
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]
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]
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