STAMP DUTY (REMISSION) ORDER 2001

STAMP DUTY (REMISSION) ORDER 2001

 

IN exercise of the powers conferred by subsection 80(2) of the Stamp Act 1949 [Act 378], the Minister makes the following order:

Citation and commencement

1.  (1)     This order may be cited as the Stamp Duty (Remission) Order 2001.

(2)     This Order shall be deemed to have come into operation on 24 October 1998.

Interpretation

2.  In this Order, "financial institution" means a bank or a finance company licensed under the Banking and Financial Institutions Act 1989 [Act 372] or under the Islamic Banking Act 1983 [Act 276], or Bank Kerjasama Rakyat Malaysia Berhad, or Bank Pembangunan dan Infrastruktur Malaysia Berhad.

Remission

3.  The duty on any instrument of-

(a)     a term loan agreement executed between a borrower and a financial institution; or

(b)     an asset sale agreement for a term loan under syariah law executed between a customer and a financial institution,

for the purpose of refinancing any existing term loan, is remitted to the extent of the duty that would be payable on the balance of the principal amount of the existing term loan:

Provided that the existing term loan was obtained for the purposes of a business, other than for working capital, and the instrument for the existing term loan had been duly stamped under item 22 or 27 of the First Schedule to the Act.

4.  For the purpose of this Order, the term loan agreement or the asset sale agreement shall contain-

(a)     the name of the financial institution or the Islamic financial institution from which the existing term loan was originally obtained; and

(b)     the balance of the principal amount of the existing term loan.

Revocation

5.  The Stamp Duty (Remission) Order 1999 [P. U. (A) 21/99] published on 14 January 1999 is revoked.

 

Made 10 January 2001.

[Perb. CR(8. 09) 248/39/7-217(SK. 2) ; LHDN. 01/34/42/68-180-2(2/2000) ; PN(PU2) 159/XXIV]

On behalf and in the name of the Minister of Finance,

 

CHAN KONG CHOY

Deputy Minister of Finance

INCOME TAX (ALLOWANCE FOR INCREASED EXPORTS) RULES 1999

INCOME TAX (ALLOWANCE FOR INCREASED EXPORTS) RULES 1999.

 

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 (Allowance for Increased Exports) Rules 1999.

(2)     These Rules shall be deemed to have come into operation on 1 January 1 998.

Interpretation

2.  For the purposes of these Rules-

"agricultural produce" means fresh and dried fruits, fresh and dried flowers, ornamental plants and ornamental fish;

"export" means direct exports not including sales to Free Industrial Zones and Licensed Manufacturing Warehouses;

"value added" means the sale price of goods at ex-factory price less the total cost of raw materials; and

"value of increased export" means the difference of the Free-On-Board (FOB) value of products exported in the basis period and that of the immediately preceding basis period.

Allowance for increased exports

3. Subject to rules 4 and 5, where a manufacturing company or a company engaged in agriculture, resident in Malaysia, exports manufactured products or agricultural produce in the basis period for a year of assessment, there shall be given to the company an allowance to be determined in the manner as prescribed in rule 4:

Provided that an exemption on exports manufactured products is only given to manufacturer.

Determination of allowance

4.  The allowance mentioned in rule 3 refers to-

(a)     10 per cent of the value of increased exports of manufactured products by the company where the products exported attained at least 30 per cent of value added;

(b)     15 per cent of the value of increased exports of manufactured products by the company where the products exported attained at least 50 per cent of value added; and

(c)     10 per cent of the value of increased exports of agricultural produce by the company.

Allowed amount exempt from tax

5. Where an allowance is given to a company under rule 3 for the year of assessment, so much of the statutory income of that business of that company for that year of assessment, as is equal to the amount of the allowance (or to the aggregate amount of any such allowances as the case may be) but not exceeding 70 per cent of the statutory income shall be exempt from tax.

Insufficiency of income

6. Where, by reason of the restriction of the allowance to 70 per cent of the statutory income or of an insufficiency or absence of statutory income from a business of the company for the basis period for a year of assessment, effect cannot be given or cannot be given in full to any allowance or allowances to which the company is entitled under rule 3 for that year of assessment and so much of the allowance or allowances as cannot be given for that year shall be given to the company 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 company has received the whole of the allowance or allowances to which it is so entitled.

Conditions to qualify for allowance

7. The exemption under rule 5 shall be granted subject to the conditions as prescribed by the Minister.

Non-application

8. These Rules shall not apply to a company-

(a)     for the period during which the company has been granted any incentives (except for deductions for promotion of exports) under the Promotion of Investment Act 1986[Act 327];

(b)     for the period during which the company has been granted reinvestment allowance under Schedule 7A of the Act.

Exclusion list

9. The exemption under rule 5 shall not apply to export of products listed in the Schedule.

Application of paragraphs 5 and 6 of Schedule 7A

10. Paragraphs 5 and 6 of Schedule 7A to the Act shall apply mutatis mutandis to the amount of income exempted under rule 5.

 

SCHEDULE

 

	Description	Harmonized System Code (H.S)
(i)	Tin ingots or slabs, tin ore and concentrates;	8001.00 000; 2609.00 000
(ii)	Natural rubber sheet and slabs, Standard Malaysian Rubber, crepe natural rubber, natural rubber latex and natural gums;	4001.10; 4001.21; 4001.22; 4001.29; 4001.30
(iii)	Crude palm kernel oil, palm kernel cakes and crude palm oil;	1511.10 000; 1513.21 100; 2306.60 200
(iv)	Copra, copra cakes and crude coconut oil;	1203.00 000; 1513.11 000; 2306.50 000
(v)	Logs, sawn timber (ungraded and non-kiln dry) and wood chips (except briquettes);	44.08; 44.07; 44.01; 44.30
(vi)	Petroleum oils (crude and other than crude) and petroleum gases and other gaseous hydrocarbons (liquified or in gaseous state) hydrogen, nitrogen and oxygen.	2709.00; 2710.00; 27.11;27.12;27.13; 2804.10 000; 2804.30 000; 2804.40 000

 

 

Made 2 April 1999.

[Perb. 0.3865/75 (SJ. 45); LHDN. 01/35/(S)/42/51/82-10.1; PN(PU2)80/XXVI]

 

DATO' MUSTAPA BIN MOHAMED

Second Minister of Finance

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

INCOME TAX (DEDUCTIONS FOR PROMOTION OF EXPORT OF SERVICES) RULES 1999

 

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 (Deductions for Promotion of Export of Services) Rules 1999.

(2)     These Rules shall have effect for the year of assessment 1996 and subsequent years of assessment.

Company eligible for deduction

2.  Every company resident in Malaysia for the basis year for a year of assessment shall be eligible for the deduction under these Rules for that year of assessment.

Deductions

3.  (1)     Subject to these Rules, for the purpose of ascertaining under the Act the adjusted income of a company from its business for the basis period for a year of assessment, there shall be allowed as a deduction any outgoings and expenses of the kind described in subparagraph (2) which-

(a)  were incurred by that company during that basis priced with respect to that business; and

(b)  were incurred primarily and principally for the purpose of promoting the export of services.

(2)     The outgoings and expenses referred to in subparagraph (1) are-

(a)  expenses incurred in respect of market research for the purpose of the export of services;

(b)  the cost of tender preparations for the purpose of the export of services;

(c)  the cost of preparing technical information for the export of services;

(d)  expenses by way of fares in respect of travel to a country outside Malaysia by a representative of the company being a travel necessarily undertaken for the promotion of export of services and actual expenses subject to a maximum of two hundred ringgit per day for accommodation and a maximum of one hundred ringgit per day for sustenance for the whole of the period commencing with the representative's departure from Malaysia and ending with his return to Malaysia;

(e)  expenses for the cost of maintaining sales office overseas for the purpose of promoting the export of services; and

(f)  expenses incurred in respect of publicity and advertisement in any media outside Malaysia for the promotion of the export of services.

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

(4)   No deduction shall be allowed under these Rules in respect of any outgoings, expenses or other payments which are-

(a)  of the kind mentioned in subsection 39(1) of the Act; or

(b)  incurred by a company havings a place of business and subject to tax in the country where such outgoings or expenses were incurred.

(5)     Where the amount of any outgoings and expenses, the whole of which would have been allowable as a deduction under these Rules but for this paragraph, exceed the amount which in the opinion of the Director General would reasonably be expected to be incurred in the ordinary course of the business with respect to which those outgoings and expenses were incurred, the Director General may to the extent of that excess disallow that amount as a deduction under these Rules.

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

 

Made 20 April 1999

[Perb. 0.3865/73 (SJ 14) (Vol. 2); LHDN. 01/35/(S)/42/51/82-36.1; PN(PU2)80/XXVI]

 

DATO' MUSTAPA BIN MOHAMED

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. 16) ORDER 1999

INCOME TAX (EXEMPTION) (NO. 16) ORDER 1999

 

 

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. 16) Order 1999.

(2)     This Order shall have effect from the year of assessment 1999.

Interpretation

2.  In this Order, unless the context otherwise requires -

"export sales" means sales derived from exports of local and imported goods and commodities, but does not include trading commissions and profits derived from trading at the Commodity Exchange and sales to Free Industrial Zones and Licensed Manufacturing Warehouses;

"Malaysia External Trade Development Corporation" means the corporation established under section 3 of the Malaysia External Trade Development Corporation Act 1992 [Act 490];

"Malaysian International Trading Company" means a company approved by the Malaysia External Trade Development Corporation which has fulfilled the following conditions:

(a)     the company is incorporated in Malaysia and at least 70 per cent of the issued share capital of the company is Malaysian owned;

(b)     the company has achieved annual sales of more than RM25 million; and

(c)     the company exports manufactured goods especially from Malaysian small and medium companies;

"Malaysian small and medium company" means a company with annual sales of less than RM25 million and with not more than 150 employees;

"related company" means a company where -

(a)     at least 20 per cent of Malaysian International Trading Company issued share capital is beneficially owned, either directly or indirectly, by that company; or

(b)     at least 20 per cent of the issued share capital of that company is beneficially owned, either directly or indirectly, by the Malaysian International Trading Company.

Exemption

3. (1)     The Minister exempts the Malaysian International Trading Company from the payment of income tax up to an amount equivalent to 70 per cent of the statutory income of the company for the basis period for a year of assessment arising from an increase of its export sales, which shall be determined in accordance with the following formula:

A x   B

         C

where

A is the statutory income of the company in relation to its export sales in that basis period;

B is the increase of the export sales of the company in that basis period over the export sales in the immediately preceding basis period; and

C is the total of the export sales of the company in that basis period.

(2)     The exemption under paragraph (1) shall be granted to the Malaysian International Trading Company for five consecutive years of assessment beginning from the year of assessment in which that company first qualified for the exemption.

Qualifications for exemption

4.  To qualify for the exemption under paragraph 3, the Malaysian International Trading Company claiming the exemption shall obtain a letter from the Malaysia External Trade Development Corporation certifying that the following conditions have been fulfilled:

(a) that the company is incorporated in Malaysia and at least 70 per cent of the issued share capital of the company is Malaysian owned;

(b) that the company has achieved annual sales of more than RM25 million;

(c) that the company exports manufactured goods especially from Malaysian small and medium companies;

(d) that not more than 20 per cent of the company's annual sales is derived from the trading of commodities;

(e) that not more than 20 per cent of the company's annual sales is derived from the sales of goods of related companies; and

(f) that the company uses local services for the purposes of banking, finance and insurance and uses local ports airports.

 

Made 13 July 1999.

[Perb. 0. 3865/73(SJ51) ; LHDN. 01/35/(S) /42/51/82-10. 1; PN(PU2) 80/XXVI]

 

DATO' MUSTAPA BIN MOHAMED

Second Minister of Finance

[To be laid before the Dewan Rakyat pursuant to subsection 127(4) of the Income Tax Act 1967].

INCOME TAX (EXEMPTION) (NO. 17) ORDER 1999

INCOME TAX (EXEMPTION) (NO. 17) ORDER 1999

 

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. 17) Order 1999.

     (2)   This Order shall have effect for the year of assessment 2000 and subsequent years of assessment.

Exemption

2. The Minister exempts non-resident film companies, actors and film crews who are in Malaysia from the payment of income tax in respect of income derived from filming activities commencing on or after 31 March 1999 which has been approved by the Jawatankuasa Filem Asing, Ministry of Home Affairs, Malaysia.

 Made 24 July 1999.

[Perb. (8.09) 248/40/7-1102 (29); LHDN. 011351(S)1421511231-4 Klt. 8; PN(PU2)80/XXVI]

 

DATO' MUSTAPA BIN MOHAMED

Second Minister of Finance

[To be laid before the Dewan Rakyat pursuant to subsection 127(4) of the Income Tax Act 1967]

INCOME TAX (QUALIFYING PLANT ANNUAL ALLOWANCES)(COST OF PROVISION OF COMPUTER SOFTWARE) RULES 1999

INCOME TAX (QUALIFYING PLANT ANNUAL ALLOWANCES)(COST OF PROVISION OF COMPUTER SOFTWARE) RULES 1999

 

IN exercise of the powers conferred by paragraphs 154(1)(b) and (f) 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 (Qualifying Plant Allowances) (Cost of Provision of Computer Software) Rules 1999.

(2)     These Rules shall have effect for the year of assessment 1999 and subsequent years of assessment.

Interpretation

2. In these Rules, unless the context otherwise requires, "qualifying plant expenditure" means capital expenditure incurred on the cost of provision of computer software, either the software system or software package.

Initial allowance

3. Initial allowance under paragraph 10 of Schedule 3 to the Act, on qualifying plant expenditure under these Rules, shall be calculated at the rate of twenty per centum.

Annual allowance

4. Annual allowance under paragraph 15 of Schedule 3 to the Act, on qualifying plant expenditure under these Rules, shall be calculated at the rate of forty per centum.

Non-application

5. These Rules shall not apply to qualifying plant expenditure which has been granted the initial and the annual allowances under the Income Tax (Qualifying Plant Allowances) (Computers and Information Technology Equipment) Rules 1998[P.U. (A) 187/98].

 

Made 13 May 1999.

[Perb. SR (8.09) 294/614-7; PN(PU2)80/XXVI; LHDN. 01/35/(S)/42/51182-35.1]

 

DATO' MUSTAPA BIN MOHAMED

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 Freight Charges From Sabah Or Sarawak To Peninsular Malaysia) Rules 2000

Income Tax (Deduction For Freight Charges From Sabah Or Sarawak To Peninsular Malaysia) Rules 2000

 

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 Freight Charges from Sabah or Sarawak to Peninsular Malaysia) Rules 2000.

(2)     These Rules shall have effect for the year of assessment 2000 in respect of the basis period ending in the year 2000 and subsequent years of assessment.

Interpretation

2.  In these Rules, "freight charges" means ship freight charges incurred by manufacturers for the shipment of their manufactured goods from Sabah or Sarawak to any port in Peninsular Malaysia.

Deduction

3.  For the purposes of ascertaining the adjusted income of a person from his business for the basis period for a year of assessment, there shall be allowed, in addition to any deduction allowable under section 33 of the Act, a further deduction equal to the amount of any freight charges incurred in that basis period.

Made 26 January 2000.

[Perb. R(8. 20) 116/1-138 (2000) (SK. 11) ; LHDN. 01/35/(S) /42/51/82-35. 1; PN(PU2) 80/XXVII]

 

On behalf and in the name of the Minister of Finance,

CHAN KONG CHOY

Deputy Minister of Finance

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