Malaysia Corporate Tax Gazette Orders

2012-11-09T23:56:00.001-08:00

PROMOTION OF INVESTMENTS (PROMOTED ACTIVITIES AND PROMOTED PRODUCTS) (AMENDMENT) ORDER 2001

In exercise of the powers conferred by section 4 of the Promotion of Investments Act 1986 [Act 327], the Minister makes the following order:

Citation and commencement

1. (1) This order may be cited as the Promotion of Investments (Promoted Activities and Promoted Products) (Amendment) Order 2001.

(2) This Order shall be deemed to have come into operation on 1 January 2001.

Amendment of the First and Second Schedules

2. The Promotion of Investments (Promoted Activities and Promoted Products) Order 1995 [P. U. (A) 31/95] is amended by substituting for the First and Second Schedules the following Schedules:

"FIRST SCHEDULES

(Subparagraph 2(1) )

Promoted Activities and Promoted Products

Industries Products/Activities

I. Agricultural production (1) Cultivation of tea

(2) Cultivation of fruits

(3) Cultivation of vegetables, tubers or roots

(4) Cultivation of rice or maize

(5) Cultivation of herbs or spices

(6) Cultivation of essential oil crops

(7) Production of planting materials

(8) Cultivation of crops for animal feed

(9) Floriculture

(10) Apiculture

(11)Livestock farming (excluding rearing of chickens, ducks or pigs)

(12) Production of breeder stock

(13) Spawning, breeding and culturing of aquatic products

(14) Off-shore fishing

(15) Cultivation of medicinal plants

II. Processing of agricultural produce (1) Chocolate and chocolate confectionery

(2) Fruits

(3) Vegetables, tubers or roots

(4) Essential oils

(5) Livestock products

(6) Aquatic products

(7) Agricultural waste or agricultural by-products

(8) Aquaculture feed

(9) Plant extracts for pharmaceutical, perfumery, cosmetic or food industries

(10) High fructose syrup

III. Forestry and forestry products (1) Cultivation of timber, bamboo or cane

(2) Cane products

(3) Bamboo products

IV. Manufacture of rubber products (1) Earthmover tyres, agricultural tyres, industrial tyres, commercial vehicle tyres, motocycle tyres, aircraft tyres or solid tyres

(2) Precured tread liners

(3) Retreading of aircraft tyres

(4) Latex products:

(a) Surgical gloves

(b) Safety/special function gloves

(c) Condoms

(d) Catheters

(e) Rubber (elastomeric) specialty coatings

(f) Rubberised fabrics

(5) Dry rubber products:

(a) Beltings

(b) Hoses, pipes and tubings

(c) Rubber profiles

(d) Inflatable rubber products

(e) Industrial and office equipment rollers

(f) Seals, gaskets, washers, packings and rings

(g) Anti-vibration, damping and sound insulation products

(h) Rubber linings

(i) Rubber floorings

(j) Rubber moulds

(k) Modified natural rubber

(6) Reclaimed rubber

V. Manufacture of palm and plam

kernel oil products and their derivatives (1) Oleochemicals or oleochemical derivatives or preparations

(2) Margarine, vanaspati, shortening or other manufactured fat products

VI. Manufacture of chemicals

and petrochemicals (1) Chemical derivatives from organic or inorganic sources

(2) Fine chemicals

(3) Basic manufacture of pesticides

(4) Petrochemical products

(5) Epoxy encapsulation moulding compounds

(6) Cable compound (excluding pvc cable compound)

(7) Titanium dioxide pigment

(8) Barium sulphate pigment

(9) Iron dioxide pigment

(10) Metallic pigment

(11) Recycling of chemicals

VII. Manufacture of pharmaceutical

and related products (1) Pharmaceutical goods

(2) Clinical diagnostic reagents

(3) Gelatine or gelatine products

(4) Intravenous, dialysis or irrigating solutions

(5) Vaccines

(6) Medicaments

VIII. Manufacture of wood

and wood products (1) Reconstituted wood-based panel boards or products

(2) Wooden solid or other specialised function doors or wooden solid windows

(3) Multi-ply parquet

(4) Wooden furniture or parts

(5) Insulation for cryogenic vessels

IX. Manufacture of pulp, paper

and paperboard (1) Pulp

(2) Newsprint

(3) Security paper

(4) Resin impregnated paper and products thereof

(5) Printing and writing paper

(6) Corrugated medium paper, testliner or kraftliner

(7) Kraft paper

(8) Paperboard

(9) Moulded paper

(10) Specialty paper

X. Manufacture of textiles and

textile products (1) Natural or man-made fibres

(2) Yarn of natural or man-made fibres

(3) Woven fabrics

(4) Finished knitted fabrics

(5) Finishing of fabrics such as bleaching, dyeing and printing

(6) Knitwear

(7) Skiwear or winter outerwear

(8) Non-woven products

(9) Elastic webbings

(10) Textile hose piping

XI. Manufacture of clay-based,

sand-based and other non-metallic

mineral products (1) High alumina or basic refractories

(2) Kiln furniture

(3) Laboratory, chemical or industrial wares

(4) Artware, ornaments or articles for adornment of ceramic or glass

(5) Glassware

(6) High tension electrical glass insulators

(7) Glass components or parts for electrical, electronic or industrial use

(8) Glass fibre in all forms produced from basic raw materials

(9) Finished woven fabrics of glass fibre

(10) Optical glass blanks

(11) Alumino-silicate ceramic fibres

(12) Ceramic components or parts for electrical, electronic or industrial uses

(13) Fritz, zirconium silicate powder, glaze or glaze stains

(14) Silicon dioxide fillers

(15) Rockwool

(16) Synthetic industrial diamonds

(17) Processed ball clay

(18) Articles of pressed or moulded glass such as bricks, tiles, slabs, pellets, paving blocks and squares

(19) Tableware

(20) Coated glass

(21) Integrated cement projects

XII. Manufacture of iron and steel (1) Blooms or slabs of steel

(2) Shapes or sections of steel of height more than 200 mm

(3) Plates, sheets, coils, hoops or strips of steel:

(a) Hot rolled plates, sheets, coils, hoops or strips

(b) Cold rolled/cold reduced plates, sheets, coils, hoops or strips

(4) Seamless steel pipes

(5) Seamless high pressure gas cylinders

(6) Steel tyre cord and high pressure reinforced hose wire

(7) Ferromanganese, silicon manganese or ferrosilicon

(8) Electrolytic galvanised steel sheet in coil

XIII. Manufacture of non-ferrous

metals and their products (1) Dressing and/or smelting of non-ferrous metals other than tin metals

(2) Primary ingots, billets or slabs of non-ferrous metals

(3) Bars, rods, shapes or sections of non-ferrous metals except EC copper rods

(4) Plates, sheets, coils, hoops or strips of non-ferrous metals

(5) Pipes or tubes of non-ferrous metals

(6) Copper clad laminates and products from in-house copper clad laminates

(7) Powder, cream or paste of non-ferrous metals

XIV. Manufacture of machinery

and machinery components (1) Specialised/process machinery or equipment associated with specific industry including-

(a) Agricultural machinery or equipment

(b) Mining or mineral extraction/processing machinery or equipment

(c) Construction machinery or equipment

(d) Waste water/sewage treatment equipment

(e) Industrial sewing machines

(2) Supporting services machinery or equipment including power generating machinery or equipment

(3) Material handling machinery or equipment including elevators or escalators

(4) Hand tools or power tools

(5) Machinery and industrial parts/componensts including-

(a) Printing rolls or embossing rolls

(b) Dicing blades, accessories for silicon wafers or ceramic substrates

(c) Offset printing plates

(d) Industrial seals or seal materials

(6) Machine tools (metalworking, woodworking and others) including welding/soldering equipment

(7) Packaging machinery

(8) Machinery or equipment for the services sector including-

(a) Fire fighting equipment

(b) Hand labellers

(9) Reconditioning of heavy machinery and equipment

XV. Manufacture of transport equipment,

components and accessories (1) Bicycle

(2) Bicycles parts:

(a) Drive set (chain wheel and crank)

(b) Brake set

(c) Speed change set

(d) Hub

(3) Specialty cars

(4) Engines

(5) Engine parts:

(a) Cylinder block, cylinder head, rocker cover, flywheel or pulley

(b) Crank shaft, connecting rod, cam shaft, rocker, rocker shaft, engine valve, sprocket, piston pin or piston ring

(c) Intake manifold or exhaust manifold

(d) Oil pan, oil pump, oil pump gear shaft, fuel pump, water pump or oil seal

(e) Timing belt, timing chain, carburettor, ignition coil or distributor

(f) Fuel injection mechanism (injector, pump, tubing, valves, regulator, sensors, electronic control modules)

(g) High tension cables

(h) Engine bracket

(i) Magneto

(j) Capacitor discharge unit

(6) Transmissions

(7) Transmission parts:

(a) Transmission shift lever and fork

(b) Transmission control linkages

(c) Speedometer pinion

(d) Clutch

(e) Torque converter

(f) Drive shaft

(8) Axle, wheel, wheel hub or knuckle

(9) Disc brake, drum brake, brake cylinder, brake master cylinder, brake booster, anti lock braking mechanism, clutch master cylinder or clutch operating cylinder

(10) Steering wheel, steering column, steering gear box, power steering pump, steering linkages, tie rod or constant velocity joints

(11) Stabilizer bar, suspension arm or suspension arm shaft and member

(12) Body panels, chassis frame, fuel tank, window regulator, locks and keys or hinges

(13) Head lights, indicating/signalling lights, meters, gauges, switches or horns

(14) Weather strips, control cables, speedometer cables, metalic tubings or hoses

(15) Catalytic converter

(16) Vehicle safety air bag

(17) Navigational system

(18) Automotive electronic module/component or sensor

(19) Seat mechanism including seat adjuster or locking mechanism or seat recliner

(20) System integrator:

(a) Front corner module

(b) Rear corner module

(c) Instrument panel module

(d) Strut and absorbers and spring assembly module

(e) Bumper assembly

(f) Front cross member module

(g) Function integrated door module

(h) Fuel tank module

(i) Seat assembly

(j) Pedal assembly

(k) Door trim assembly

(l) Floor console assembly

(m) Tyre and wheel assembly

(n) Brake system

(o) Wiper system

(p) Exhaust system

(q) Audio system

(r) HVAC (Heater Ventilation Air-conditioning system)

(s) Airbag system

(t) Power and signal distribution system

(u) Alarm system

(v) Seat belt system

(w) Exterior lighting system

(x) Body in white assembly

(21) Gear

(22) Cooling equipment, air-inlet equipment or exhaust equipment, compressor and expansion valve for automotive air-conditioning

(23) Aerospace industry:

(a) Manufacture and assembly or aircraft

(b) Manufacture of aircraft equipment, components, accessories or parts thereof

(c) Ground support equipment for aerospace industry

(24) Pleasure crafts, hydrofoils or hovercrafts

(25) Maintenance, repair, overhaul or service of aircraft, aircraft components or accessories or testing and repairing of avionics

(26) Manufacture of train and related equipment:

(a) Construction or locomotive, rail car

(b) Coach, wagon, bogie

(c) Electric multiple unit and power generating car

(d) Railway signalling and communication system

XVI. Supporting products/services (1) Metal castings

(2) Metal forgings

(3) Metal surface treatment/finishing

(4) Machining

(5) Moulds, tools and dies

(6) Overhaul, repair, reconditioning, modification or servicing and testing of turbine engines, components or sub-assemblies

(7) Storage, treatment and disposal of toxic or hazardous waste

(8) Power metallurgical parts (sintered metal parts)

(9) Advanced composite materials

(10) Heat treatment

(11) Mould texturing

(12) Irradiation service

(13) Gas sterilisation service

(14) Energy conservation services*

(15) Cold chain facilities and services for food products

(16) Utilisation of biomass for energy generation*

XVII. Manufacture of electrical and

electronic products and components

and parts thereof (1) Digital television receivers

(2) Colour television receiver parts:

(a) Cathode ray tubes

(b) Electron guns

(c) Polished glass panels or glass funnels for colour picture tubes

(3) Digital audio video recorders/players and parts:

(a) Digital audio video recorders/players

(b) Digital tape mechanisms

(c) Digital disc mechanisms

(d) Optical pick-up units

(e) Magnetic heads

(4) Computers, parts and peripherals:

(a) Computers (excluding detached peripherals not manufactured in-house)

(b) Monitors

(c) Computer printers (including printer mechanism)

(d) Printer heads

(e) Computer scanners

(f) Drive units

(g) Head gimbal assemblies/head carriage assemblies

(h) Headstack assemblies

(i) Computer magnetic heads

(j) Data storage media

(k) Voice coil motors

(l) Actuators

(m) Electronic games equipment including photodetector joysticks

(n) Disk substrates or disk blanks

(o) Re-manufacturing of computer drives

(5) Electronic components:

(a) Quartz crystals

(b) Motors

(c) Printed circuit boards (excluding rigid single sided circuit boards)

(d) Cables or wires for electronic devices including flat cables

(e) Hermetic seals

(f) Electrical/electronic components moulded with magnets

(g) Heat shrinkable cable joints and terminations

(h) Thermistors

(i) Connectors with or without wires or cables

(j) Bonding wires

(k) Lead-frames

(l) Magnets or ferrite cores

(m) Displays-electroluminescent, plasma or liquid crystal

(n) Membrane switches

(o) Surface mount components

(p) Optical fibres or optical fibre products

(q) SMT chipholders on lead-frames

(r) Solar cells

(s) Magnetron

(6) Recorded and unrecorded media:

(a) Compact discs

(b) Magnetic webs or pancakes

(7) Electronic machines and equipment/devices:

(a) Teller machines

(b) Office equipment

(c) Alarm equipment/systems or devices

(d) Ultrasonic cleaners

(e) Computing scales

(f) Cash registers

(g) Demagnetisers

(h) Industrial controllers

(i) Computer Aided Design (CAD) , Computer Aided Manufacturing (CAM) of Computer Aided Engineering (CAE) equipment

(j) Robots or robotics

(k) Multimedia integrated controller

(8) Wafer fabrication:

(a) Semiconductor wafer fabrication

(b) Reclaimed silicon wafers

(9) Electrical products:

(a) Uninterruptible power supplies

(b) Batteries excluding manganese dioxide, dry cells and lead acid batteries

(c) Solar panels

(d) Discharge tubes

(10) Telecommunication:

(a) Telecommunication equipment including multi feature mobile phones but excluding fixed line telephone sets

(b) Antennae for communication equipment

(c) Voice/pattern/vision recognition or synthesis equipment

(d) Data terminal displays

(e) Global positioning system

(f) Electronic navigational aid

(g) Electronic tracking aid

(11) Software development and production

XVIII. Manufacture of professional,

medical, scientific and measuring

devices/parts (1) Medical, surgical, dental or veterinary devices/equipment

(2) Gauges or measuring apparatus

(3) Surveying, hydrographic, navigational, meteorological, hydrological or geophysical instruments

(4) Testing equipment

(5) Clocks or watches

(6) Stainless steel cannulae or tubes for needles

XIX. Manufacture of photographic,

cinematographic, video and optical

goods (1) Cameras

(2) Lenses

(3) Binoculars, telescopes, magnifying glasses or microscopes

(4) Cinematographic or video equipment

XX. Manufacture of plastic products (1) Inflatable plastic products

(2) Specialised plastic films/sheets

(3) Geosystems products [Cellular Confinement System (ccs) and Porous Pavement System (pps) ]

(4) Plastic products for engineering use

(5) Precision engineering plastic products

XXI. Miscellaneous (1) Musical instrument

(2) Furniture hardware

(3) Souvenirs, handicrafts or giftware

(4) Electronic toys

(5) Sports goods or equipment

(6) Spectacles or spectacle frames

(7) Accessories for the textile industry

(8) Cutlery

(9) Lock sets or lock cylinder mechanisms

(10) Jewellery of precious metal

(11) Costume jewellery

(12) Designing and printing of decorative surfaces for commercial applications

(13) Integrated exhibits

(14) Microbials and probiotics

XXII. Hotel business and tourist industry (1) Establishment of medium and low-cost hotels (up to a three-star hotel)

(2) Expansion/modernisation of existing hotels

(3) Establishment of tourist projects

(4) Expansion/modernisation of tourist projects

(5) Establishment of recreational camps

(6) Establishment of convention centres

XXIII. Film industry (1) Film or video production

(2) Post production for film or video

SECOND SCHEDULE

(Subparagraph 2(2) )

Additional Promoted Activities and Promoted Products

for Promoted Areas

Industries Products/Activities

I. Agricultural production (1) Sericulture

(2) Cultivation of cocoa

(3) Cultivation of coconut

(4) Cultivation of sago palm

II. Processing of agriculture produce (1) Illipe products

(2) Coconut products except copra or crude coconut oil

(3) Starch products

(4) Cocoa paste, butter and powder

III. Manufacture of rubber products (1) Latex products:

(a) Carpet underlay

(b) Swimming caps

(c) Balloons

(d) Finger cots

(e) Toys

(f) Latex thread

IV. Manufacture of palm and palm kernel

oil products and their derivatives (1) Cocoa butter replacers, cocoa butter substitutes, cocoa butter equivalent, palm mid fraction or special olein

(2) Crude palm kernel oil or palm kernel meal

(3) Refining of palm oil or palm kernel oil

V. Manufacture of chemicals and

petrochemicals (1) Cleaning preparations, cosmetics or toilet preparations

(2) Wax products

(3) Specialised paints or coatings

VI. Manufacture of wood and

wood products (1) All wooden products except sawn timber, veneer and plain plywood

VII. Manufacture of pulp, paper

and paperboard (1) All types of paper and paper products from pulp

VIII. Manufacture of clay-based,

sand-based and other non-metallic

mineral products (1) Processed kaolin

(2) Ceramic wall or floor tiles

(3) Vitrified clay pipes

(4) Calcium carbonate powder

(5) Coated or uncoated talc or barium sulphate powders (average particle size less than 5 microns)

(6) High grade silica sand or powder

(7) Panel, boards, tiles, blocks or similar articles of vegetables fibre, wood fibre, straw, wood shavings or wood wastes, agglomerated with cement, plaster or other mineral binding substance

(8) Clay roofing tiles

IX. Manufacture of iron and steel (1) Welded steel pipes or pipe fittings

(2) Bars or wire rods (except those of mild steel) , angels, shapes or sections of all grades of steel either hot-rolled, cold-rolled or cold-finished

(3) Wires or wire products of iron or steel

(4) Steel fabricated products

X. Manufacture of non-ferrous

metals and their products (1) Wire or wire products of non-ferrous metals

(2) Fabricated products of non-ferrous metals

XI. Manufacture of transport

equipment, components and

accessories (1) Electrical or electronics systems instrumentation

(2) Shipbuilding

(3) Shiprepair

XII. Supporting products/services (1) Metal stamping

(2) Galvanishing, shearing or slitting of metal sheets or other related engineering services

XIII. Manufacture of electrical and

electronic products and components

and parts thereof (1) Transformers or coils

(2) Automatic gate mechanisms

(3) Consumer electronic products; parts, sub-assemblies or accessories thereof

(4) Industrial electronic products; parts, sub-assemblies and accessories thereof

(5) Electrical household appliances and part thereof

(6) Electrical industrial equipment or parts thereof

XIV. Manufacture of plastic products (1) Expanded polystyrene foam

XV. Miscellaneous (1) Toys (excluding electronic toys)

(2) Art and design apparatus-all types

(3) Enamelled householdware

(4) Cooker or barbeque sets".

Made 9 May 2001.

[MITI: ID/BDI/G (S) 314/3; PN(PU2) 451/IV]

RAFIDAH AZIZ

Minister of International Trade and Industry

Deputy Minister of Finance.

INCOME TAX (APPROVED FOOD PRODUCTION PROJECTS) ORDER 2001 [P.U. (A) 80]

2012-11-09T23:51:00.003-08:00

INCOME TAX (APPROVED FOOD PRODUCTION PROJECTS) ORDER 2001 [P.U. (A) 80]

(Gazetted on 29 March, 2001)

IN exercise of the powers conferred by paragraphs 1, 2 and 11 of Schedule 4C to 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 (Approved Food Production Projects) Order 2001.

(2) This Order shall be deemed to have come into effect from the year of assessment 2001.

Approved food production projects

2. The projects listed in the Schedule are the food production projects approved by the Minister for the purposes of Schedule 4C.

SCHEDULE

Projects

1. Planting of —

(a) kenaf;

(b) vegetables;

(c) fruits; and

(d) spices

2. Aquaculture; and

3. Rearing of —

(a) cattle;

(b) goats;and

(c) sheep.

Made 7 March 2001

[Perb.CR (8.20)116/1-138 (2001) Vol.3 (Sk.1); LHDN.01/35/(S)/42/51/82; PN(PU ²) 80/XXXIII]

On behalf and in the name of the Minister of Finance

CHAN KONG CHOY

Deputy Minister of Finance

INCOME TAX (PROMOTION OF EXPORTS) RULES 1986

2012-11-09T23:50:00.003-08:00

ACT 327
PROMOTION OF INVESTMENTS ACT 1986

SCHEDULE [Subsection 41 (3) ]

INCOME TAX (PROMOTION OF EXPORTS) RULES 1986

1. Citation and commencement.

(1) These Rules may be cited as the Income Tax (Promotion of Exports) Rules 1986.

(2) These Rules shall have effect with respect to approved outgoings and expenses incurred on or after the 1 January 1986.

2. Interpretation.

In these Rules, unless the context otherwise requires–

"approved outgoings and expenses" means outgoings and expenses allowable as a deduction under rule 4.

3. Company resident in Malaysia eligible for deduction.

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

4. Deduction of certain outgoings and expenses.

(1) Subject to these Rules, for the purpose of ascertaining under the principal 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 paragraph (2) which–

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

(b) were incurred primarily and principally for the purpose of seeking opportunities, or in creating or increasing a demand, for the export of goods or agricultural produce manufactured, produced, assembled, processed, packed, graded or sorted in Malaysia.

(2) The outgoings and expenses referred to in paragraph (1) are–

(a) expenses incurred in respect of publicity and advertisements in any media outside Malaysia;

(b) expenses directly attributable to the provision of samples without charge to prospective customers outside Malaysia, including the cost of delivery of the samples;

(c) expenses directly attributable to carrying out export market research or the obtaining of export marketing information;

(d) expenses directly attributable to the preparation of tenders for the supply of goods or agricultural produce (not being goods or agricultural produce of the same kind and specifications as those regularly manufactured, produced or supplied by the company) to prospective customers outside Malaysia;

(e) expenses by way of fares in respect of travel to a country outside Malaysia by a representative of the company, being travel necessarily undertaken for the purpose of negotiating or concluding contracts for sales of goods or agricultural produce on behalf of the company or for the purpose of participating in trade fairs or trade or industrial exhibitions approved by the Minister, and actual expenses, subject to a maximum of three hundred ringgit per day, for accommodation and a maximum of one hundred and fifty 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;

[Am. P.U.(A) 267/2003]

(f) expenses for giving technical information to persons outside Malaysia relating generally to goods or agricultural produce of the company offered for sale, excluding expenses for giving technical information to purchasers after purchase;

(g) expenses directly attributable to the provision of exhibits for trade fairs or trade or industrial exhibitions which are held outside Malaysia and approved by the Minister;

[Am. Act A751:s.22]

(h) expenses for services rendered for public relations work connected with export;

(i) expenses directly incurred for participating in trade fairs or trade or industrial exhibitions approved by the Minister other than the expenses specified in subparagraphs (e) and (g);

(j) expenses for the cost of maintaining sales offices overseas for the promotion of exports from Malaysia;

[Am. PU(A)170/2001]

(k) professional fees incurred in packaging design on condition that the goods are of export quality and the company employs local
professional services.

[Ins. PU(A)170/2001]

(3) Deductions allowed under this rule shall be in addition to any deductions allowable under section 33 of the principal Act.

(4) No deduction shall be allowed under this rule in respect of any outgoings, expenses or other payments of the kind mentioned subsection 39 (1) of the principal Act.

(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, exceeds 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 paragraph (1) of this rule, where two basis periods overlap, the period common to both shall be deemed to fall in the first basis period only.

5. Pioneer company.

Notwithstanding section 21 where a company which has incurred outgoings and expenses allowed under rule 4 is a pioneer company, then–

(a) for the purpose of computing its income for any accounting period in respect of its pioneer business under that section, no deductions shall be made under these Rules;

(b) all deductions under these Rules which but for paragraph (a) of this rule would have fallen to be made for the purpose of computing its income from its pioneer business under that section shall be accumulated, and the aggregate amount thereof shall be allowed as a deduction under these Rules for the purpose of ascertaining its income from its post-pioneer business for the first basis period appropriate to the post-pioneer business for a year of assessment.

6. Non-application of Rules.

These Rules shall not apply to any of the outgoings and expenses referred to in rule 4 which are incurred in relation to the export of any of the products excluded for the purposes of Chapters 4 and 5.

STAMP DUTY (REMISSION) (NO. 2) ORDER 2004 [P.U. (A) 23]

2012-11-09T23:50:00.000-08:00

STAMP DUTY (REMISSION) (NO. 2) ORDER 2004 [P.U. (A) 23]

(Gazetted on 8 January, 2004)

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) (No. 2) Order 2004.

(2) This Order is deemed to have come into operation on 13 September 2003.

Remission

2. The stamp duty on any instrument of an Asset Lease Agreement for a term loan under the principles of the Syariah executed between a customer and a financier 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.

3. For the purpose of this Order, the Asset Lease Agreement shall contain—

(a) the name of the financier from which the existing term loan was originally obtained; and

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

Made 17 December 2003

[Perb. CR(8.09)294/6/4-9 (SJ. 5) Vol. 3(Sk. 5); LHDN. 01/34/(S)/42/68-100-3-1(2003); PN(PU²)159/XXIX]

On behalf and in the name of the Minister of Finance

DR. NG YEN YEN

Deputy Minister of Finance II

STAMP DUTY (REMISSION) ORDER 2004 [P.U.(A) 22]

2012-11-09T23:49:00.002-08:00

STAMP DUTY (REMISSION) ORDER 2004 [P.U.(A) 22]

(Gazetted on 8 January, 2004)

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 2004.

(2) This Order is deemed to have come into operation on 13 September 2003.

Interpretation

2. In this Order—

“rescheduling” means changing the terms of repayment;

“restructuring” means changing the form or structure of the facility or other terms of the facility.

Remission

3. The stamp duty on any instrument of an Asset Lease Agreement executed between a customer and a financier made under the principles of the Syariah for the purpose of rescheduling or restructuring any existing Islamic financing

facility is remitted to the extent of the duty that would be payable on the balance of the principal amount of the existing Islamic financing facility:

Provided that the instrument for the existing Islamic financing facility had been duly stamped under item 22 or 27 of the First Schedule to the Act.

Matters to be stated in the Agreement

4. For the purpose of this Order, the Asset Lease Agreement referred to in paragraph 3 shall state—

(a) the name of the financier from which the existing Islamic financing facility was originally obtained; and

(b) the balance of the principal amount of the existing Islamic financing facility.

Made 17 December 2003

[Perb. CR(8.09)294/6/4-9 (SJ. 5) Vol. 3(Sk. 5); LHDN. 01/34/(S)/42/68-100-3-1(2003); PN(PU²)159/XXIX]

On behalf and in the name of the Minister of Finance

DR. NG YEN YEN

Deputy Minister of Finance II

STAMP DUTY (EXEMPTION) (NO. 4) ORDER 2004 [P.U. (A) 21]

2012-11-09T23:48:00.005-08:00

STAMP DUTY (EXEMPTION) (NO. 4) ORDER 2004 [P.U. (A) 21]

(Gazetted on 8 January, 2004)

IN exercise of the powers conferred by subsection 80(1) 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 (Exemption) (No. 4) Order 2004.

(2) This Order is deemed to have come into operation on 13 September 2003.

Exemption

2. All instruments of transfer of real property to a Real Estate Investment Trust or a Property Trust Fund approved by the Securities Commission are exempted from stamp duty.

Made 17 December 2003

[Perb. (8.09)294/6/4-9 (SJ. 5) Vol. 3(Sk. 5); LHDN. 01/34/(S)/42/68-100-3-1(2003); PN(PU²)159/XXIX]

On behalf and in the name of the Minister of Finance

DR. NG YEN YEN

Deputy Minister of Finance II

STAMP DUTY (EXEMPTION) (NO. 3) ORDER 2004 [P.U.(A) 20]

2012-11-09T23:48:00.002-08:00

STAMP DUTY (EXEMPTION) (NO. 3) ORDER 2004 [P.U.(A) 20]

(Gazetted on 8 January, 2004)

IN exercise of the powers conferred by subsection 80(1) 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 (Exemption) (No. 3) Order 2004.

(2) This Order is deemed to have come into operation on 13 September 2003.

Exemption

2. All instruments relating to a purchase of property by any financier for the purpose of lease back under the principles of the Syariah, or any instrument by which the financier shall assume the contractual obligations of a customer under a principal sale and purchase agreement, are exempted from stamp duty.

Made 17 December 2003

[Perb. CR(8.09)294/6/4-9 (SJ. 5) Vol. 3(Sk. 5); LHDN. 01/34/(S)/42/68-100- 3-1(2003); PN(PU²)159/XXIX]

On behalf and in the name of the Minister of Finance

DR. NG YEN YEN

Deputy Minister of Finance II

STAMP DUTY (EXEMPTION) (NO. 2) ORDER 2004 [P.U. (A) 19]

2012-11-09T23:46:00.006-08:00

STAMP DUTY (EXEMPTION) (NO. 2) ORDER 2004 [P.U. (A) 19]

(Gazetted on 8 January, 2004)

IN exercise of the powers conferred by subsection 80(1) 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 (Exemption) (No. 2) Order 2004.

(2) This Order is deemed to have come into operation on 13 September, 2003

Exemption

2. All instruments of an Asset Sale Agreement or an Asset Lease Agreement executed between a customer and a financier made under the principles of the Syariah for the purpose of renewing any Islamic revolving financing facility

are exempted from stamp duty if the instrument for the existing Islamic revolving financing facility had been duly stamped.

Made 17 December 2003

[Perb. CR(8.09)294/6/4-9 (SJ. 5) Vol. 3(Sk. 5); LHDN. 01/34/(S)/42/68-100-3-1(2003); PN(PU²)159/XXIX]

On behalf and in the name of the Minister of Finance

DR. NG YEN YEN

Deputy Minister of Finance II

INCOME TAX (DEDUCTION FOR IMPLEMENTATION OF ROSETTANET) RULES 2004 [P.U. (A) 8]

2012-11-09T23:46:00.002-08:00

INCOME TAX (DEDUCTION FOR IMPLEMENTATION OF ROSETTANET)

RULES 2004 [P.U. (A) 8]

(Gazetted on 1 January, 2004)

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 Implementation of RosettaNet) Rules 2004.

(2) These Rules are deemed to have effect from the year of assessment 2002.

Interpretation

2. In these Rules, unless the context otherwise requires—

“local manufacturer” means a company which is—

(a) incorporated in Malaysia and at least 60 per cent of the issued shared capital of the company is owned by Malaysian nationals;

(b) carrying on manufacturing activities; and

(c) adopting and implementing RosettaNet; and

“qualifying company” means—

(a) a company which is a member of RosettaNet Malaysia Berhad and which is assisting a local manufacturer to adopt and implement RosettaNet; or

(b) a company, association or statutory body which is a member of RosettaNet Malaysia Berhad and which is assisting RosettaNet Malaysia Berhad.

Company eligible for deduction

3. A qualifying company which is 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.

Deduction

4. Subject to these Rules, for the purpose of ascertaining under the Act the adjusted income of a qualifying company from its business for the basis period for a year of assessment, there shall be allowed as a deduction an amount

equivalent to the cost of the expenses of the kind specified in the Schedule incurred by that qualifying company for the purposes of implementation of RosettaNet as verified by the Small and Medium Industries Development

Corporation (SMIDEC).

Revocation

5. The Income Tax (Deduction For Implementation of RosettaNet) Rules 2002 [P.U. (A) 316/2002] is revoked.

SCHEDULE

1. Cost of new computer hardware, software and networking device provided by a qualifying company to RosettaNet Malaysia Berhad.

2. Cost of new office equipment provided by a qualifying company to RosettaNet Malaysia Berhad.

3. Basic salary of employees on secondment from a qualifying company to RosettaNet Malaysia Berhad for a period of not more than three years.

4. Basic salary of employees on secondment from a qualifying company to a local manufacturer for a period of two to six months.

5. Cost relating to fees, travelling expenses, accommodation of trainers and rental of facilities provided by a qualifying company for the provision of training to the employees of a local manufacturer of not more than RM100,000.00.

Made 13 December 2003

[Perb. CR(8.09)248/40/7-304 Vol. 8(SK.3)(22); LHDN. 01/35/(S)/42/51/ 231-17.2; PN(PU²)80/XL]

DATO’ DR. JAMALUDIN BIN MOHD JARJIS

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) (REVOCATION) ORDER 2004 [P.U. (A) 10]

2012-11-09T23:45:00.000-08:00

INCOME TAX (EXEMPTION) (REVOCATION) ORDER 2004 [P.U. (A) 10]

(Gazetted on 1 January, 2004)

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) (Revocation) Order 2004.

(2) This Order comes into operation from the year of assessment 2004.

Revocation

2. The Income Tax (Exemption) (No. 48) Order 1997 [P.U. (A) 469/1997] published on 27 November 1997 is revoked.

Made 17 December 2003

[Perb. CR(8.09)294/6/4-9(SJ.5)Vol. 3 (SK. 7); LHDN. 01/35/(S)/42/51/231- 17.5; PN(PU²)80/XL]

On behalf and in the name of the Minister of Finance

DR NG YEN YEN

Deputy Minister of Finance II

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

INCOME TAX (DEDUCTION FOR INCORPORATION EXPENSES) RULES 2003 [P.U. (A) 475]

2012-11-09T23:44:00.001-08:00

INCOME TAX (DEDUCTION FOR INCORPORATION EXPENSES) RULES 2003 [P.U. (A) 475]

(Gazetted on 31 December, 2003]

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 Incorporation Expenses) Rules 2003.

(2) These Rules come into operation from the year of assessment 2004.

Deduction

2. (1) For the purpose of ascertaining the adjusted income from a business for the basis period for a year of assessment of a company which is incorporated in Malaysia on or after 13 September 2003 and having authorized capital of not more than RM2,500,000 there shall be allowed a deduction of an amount equal to the expenditure incurred by that company in relation to its incorporation.

(2) Incorporation expenses referred to in subparagraph (1) shall be the following:

(a) the cost of preparing and printing the memorandum of association, the articles of association 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 payables thereon;

(c) the cost of drawing up the preliminary contracts and stamp duties payable thereon;

(d) the cost of printing debentures and stamp duty (if any) payable thereon and of share certificates and letters of allotment;

(e) the cost of the seal of the company; and

(f) underwriting commision.

(3) For the purpose of subparagraph (1), any incorporation expenditure incurred by the company shall be deemed to have been incurred in the basis period for a year of assessment in which the business of that company commences.

(4) In relation to a company which has an authorized capital of more than RM250,000 and not more than RM2,500,000 and has incurred incorporation expenditure during the period 13 September 2003 until 31 December 2003 and that period forms part of the basis period for the year of assessment 2003, that incorporation expenditure shall be deemed to have been incurred in the basis period for the year of assessment 2004.

Revocation

3. The Income Tax (Deduction of Incorporation Expenses) Rules 1974 [P.U. (A) 134/1974] are revoked with effect from the year of assessment 2004.

Made 15 December 2003

[Perb. CR(8.09) 294/6/4-9 (SJ. 5) Vol. 3 (SK. 6); LHDN. 01/35/(S)/42/51/231-17.5; PN(PU²)80/XXXIX]

DATO’ DR. JAMALUDDIN BIN MOHD JARJIS

Minister of Finance II

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

INCOME TAX (PRESCRIBED TRANSACTIONS) RULES 2003 [P.U.(A) 472]

2012-11-07T07:05:00.001-08:00

INCOME TAX (PRESCRIBED TRANSACTIONS) RULES 2003 [P.U.(A) 472]

(Gazetted on 31 December, 2003)

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 (Prescribed Transactions) Rules 2003.

(2) These Rules are deemed to have effect from the year of assessment 2003.

Prescribed transaction

2. Minister prescribes an asset backed debt securities transaction as a transaction under subparagraph 36(1)(a)(iv) to the Act.

Made 15 December 2003

[Perb. CR(8.09) 294/6/4-9 (SJ. 5) Vol. 3 (SK. 5); LHDN. 01/35/(S)/42/51/231-17.5;

PN(PU²)80/XXXIX]

DATO’ DR. JAMALUDDIN BIN MOHD JARJIS

Second Minister of Finance

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

REAL PROPERTY GAINS TAX (EXEMPTION) (NO. 4) ORDER 2003 [P.U. (A) 451]

2012-11-07T07:04:00.006-08:00

REAL PROPERTY GAINS TAX (EXEMPTION) (NO. 4) ORDER 2003 [P.U. (A) 451]

(Gazetted on 11 December, 2003)

IN exercise of the powers conferred by subsection 9(3) of the Real Property Gains Tax Act 1976 [Act 169], the Minister makes the following order:

Citation and commencement

1. (1) This order may be cited as the Real Property Gains Tax (Exemption) (No. 4) Order 2003.

(2) This Order is deemed to have come into operation on 13 September 2003.

Exemption

2. The Minister exempts any person from the payment of real property gains tax in respect of chargeable gains accruing on the disposal of any chargeable assets to a Real Estate Investment Trust (REIT) or a Property Trust Fund (PTF) which is approved by the Securities Commission.

Made 17 November 2003

[Perb. CR(8.09) 294/6/4-9 (Sj. 5) Vol. 3 (Sk. 4);

LHDN. 01/35/(S)/42/23/7; PN(PU²)325/II]

On behalf and in the name of the Minister of Finance

DR. NG YEN YEN

Deputy Minister of Finance II

[To be laid before the Dewan Rakyat pursuant to subsection 9(4) of the Real Property Gains Tax Act 1976]

REAL PROPERTY GAINS TAX (EXEMPTION) (NO. 3) ORDER 2003 [P.U.(A) 450]

2012-11-07T07:04:00.002-08:00

REAL PROPERTY GAINS TAX (EXEMPTION) (NO. 3) ORDER 2003 [P.U.(A) 450]

(Gazetted on 11 December, 2003)

IN exercise of the powers conferred by subsection 9(3) of the Real Property Gains Tax Act 1976 [Act 169], the Minister makes the following order:

Citation and commencement

1. (1) This order may be cited as the Real Property Gains Tax (Exemption) (No. 3) Order 2003.

(2) This Order is deemed to have effect from the year of assessment 2003.

Exemption

2. The Minister exempts any person from the payment of real property gains tax in respect of chargeable gains accruing on the disposal of any chargeable assets in relation to the issuance of private debt securities under Islamic principles.

Non-Application

3. This Order shall not apply to any person who has been granted an exemption under the Real Property Gains Tax (Exemption) (No. 4) Order 2002 [P.U. (A) 270/2003].

Made 17 November 2003

[Perb. CR(8.09) 294/6/4-9 (Sj. 5) Vol. 3 (Sk. 4);

LHDN. 01/35/(S)/42/23/7; PN(PU²)325/II]

On behalf and in the name of the Minister of Finance

DR. NG YEN YEN

Deputy Minister of Finance II

[To be laid before the Dewan Rakyat pursuant to subsection 9(4) of the Real Property Gains Tax Act 1976]

STAMP DUTY (EXEMPTION) (NO. 8) ORDER 2003 [P.U. (A) 183]

2012-11-07T07:03:00.006-08:00

STAMP DUTY (EXEMPTION) (NO. 8) ORDER 2003 [P.U. (A) 183]

(Gazetted on 5 June, 2003)

IN exercise of the powers conferred by subsection 80(1) of the Stamp Act 1949 [Act 378], the Minister makes the following order:

Citation

1. (1) This order may be cited as the Stamp Duty (Exemption) (No. 8) Order 2003.

(2) This Order is deemed to have effect from 22 May 2003.

Exemption

2. All loan instruments executed pursuant to a scheme under the Special Relief Guarantee Facility (SRGF) For A Business Affected By SARS (Severe Acute Respiratory Syndrome) Outbreak are exempted from stamp duty.

Made 2 June 2003

[Perb. CR(8.20) 116/1-138 (SJ.22)(SK.3); LHDN. 01/34/42/68-180-1(13/03); PN(PU²)159/XXVIII]

On behalf and in the name of the Minister of Finance

CHAN KONG CHOY

Deputy Minister of Finance

INCOME TAX (EXEMPTION) (NO. 60) ORDER 2003 [P.U.(A) 382]

2012-11-07T07:03:00.002-08:00

INCOME TAX (EXEMPTION) (NO. 60) ORDER 2003 [P.U.(A) 382]

(Gazetted on 9 October, 2003)

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. 60) Order 2003.

(2) This Order is deemed to have effect from the year of assessment 2003.

Interpretation

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

“regional office” means a regional office approved by the Minister of International Trade and Industry;

“operational headquarters company” means an operational headquarters company approved by the Minister of Finance.

Exemption

3. (1) The Minister exempts a non-citizen individual from the payment of income tax in respect of income derived from an employment with an operational headquarters company or a regional office.

(2) Subject to subparagraph (3), the amount of income exempted under subparagraph (1) is in respect of the employment exercised outside Malaysia which shall be determined in accordance with the following formula:

A x B

where A is the chargeable income for a year of assessment attributable to an operational headquarters company or a regional office;

B is the number of days in the year of assessment he is in employment with the operational headquarters or the regional office exercised outside Malaysia; and

C is the number of days in the year of assessment he is in employment with the operational headquarters company or the regional office.

(3) Where the non-citizen individual has sources of income other than that of employment with the operational headquarters or the regional office, the chargeable income referred to in subparagraph (2) shall be determined in accordance with the following formula:

D x E

where D is the chargeable income for a year of assessment;

E is the gross income from employment with the operational headquarters company or the regional office for a year of assessment; and

F is the total of gross income from all sources for a year of assessment.

(4) For the purpose of subparagraph (2), a non-citizen individual is deemed to be outside Malaysia for a day if he is outside Malaysia for the whole of that day.

Made 25 September 2003

[Perb. CR(8.09)681/2-61(SJ. 12) Vol. 3(33); LHDN. 01/35/42/51/231-17.3; PN(PU²)80/XXXIX]

On behalf and in the name of the Minister of Finance

DR. NG YEN YEN

Deputy Minister of Finance II

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

INCOME TAX (ACCELERATED CAPITAL ALLOWANCE) (CONSERVATION OF ENERGY) RULES 2003 [P.U.(A) 349]

2012-11-07T07:02:00.006-08:00

INCOME TAX (ACCELERATED CAPITAL ALLOWANCE) (CONSERVATION OF

ENERGY) RULES 2003 [P.U.(A) 349]

(Gazetted on 18 September, 2003)

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 (Accelerated Capital Allowance) (Conservation of Energy) Rules 2003.

(2) These Rules are deemed to have effect from the year of assessment 2003.

Interpretation

2. For the purposes of these Rules, “qualifying plant expenditure” means capital expenditure incurred under paragraph 2 of Schedule 3 to the Act.

Application

3. These Rules shall apply to a company in respect of qualifying plant expenditure incurred in the basis period for a year of assessment on the provision of plant or machinery as certified by the Ministry of Energy, Communications and

Multimedia as a plant or machinery used exclusively for the conservation of energy of its business.

Initial allowance

4. Initial allowance provided under paragraph 10 of Schedule 3 to the Act, shall be equal to two-fifth of the qualifying plant expenditure.

Annual allowance

5. (1) Subject to subparagraph (2), annual allowance provided under paragraph 15 of Schedule 3 to the Act shall be equal to three-fifth of the qualifying plant expenditure.

(2) Where a company had incurred qualifying plant expenditure and has been allowed an annual allowance under the Income Tax (Accelerated Capital Allowance) (Conservation of Energy) Rules 2001 [P.U. (A) 82/2001],

the annual allowance for the year of assessment 2003 shall be the amount of that qualifying plant expenditure reduced by the total allowances allowed under these Rules.

Non-application

6. 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]; or

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

Revocation

7. The Income Tax (Accelerated Capital Allowance) (Conservation of Energy) Rules 2001 [P.U. (A) 82/2001] is revoked with effect from the year of assessment 2003.

Made 28 August 2003

[Perb. 0.3865/305 vol. 3; LHDN. 01/35/(S)/42/51/231-17.3; PN(PU²)80/XXXIX]

DR. JAMALUDIN BIN MOHD. JARJIS

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 ON ACQUISITION OF A FOREIGN OWNED COMPANY) RULES 2003 [P.U. (A) 310]

2012-11-07T07:02:00.003-08:00

INCOME TAX (DEDUCTION FOR COST ON ACQUISITION OF A FOREIGN OWNED

COMPANY) RULES 2003 [P.U. (A) 310]

(Gazetted on 21 August, 2003)

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 on Acquisition of a Foreign Owned Company) Rules 2003.

(2) These Rules are deemed to have come into operation on 21 September 2002.

Interpretation

2. In these Rules, unless the context otherwise requires—

“acquisition of foreign owned company” means acquisition of a foreign owned company located outside Malaysia for the purpose of acquiring high technology for production within the country or for acquiring new export markets

for local products as approved by the Malaysian Industrial Development Authority;

“local owned company” means a company incorporated under the Company’s Act 1965 [Act 125] with at least 60% Malaysian equity ownership and involved in manufacturing, trading or marketing activities;

‘ “locally owned company” means a resident company in Malaysia which is established under the Companies Act 1965 [Act 125] and involved in manufacturing, trading or marketing activities of local products where—

(a) for a company which is not listed on the stock exchange established under subsection 8(2) of the Securities Industry Act 1983 [Act 280], at least sixty per cent of its equity is directly owned by Malaysian;

(b) for a company which is listed on the stock exchange established under subsection 8(2) of the Securities Industry Act 1983—

(i) at least fifty per cent of its equity is directly owned by the Malaysian; and

(ii) at least sixty per cent of its equity is directly owned by the Malaysian on the first day of listing on the stock exchange;’

(Amendment Rules 2008 [P.U. (A) 81])

“pioneer company” has the same meaning as defined under section 2 of the Promotion of Investments Act 1986 [Act 327].

Deduction

3. (1) In ascertaining the adjusted income from the business of a locally owned company which has incurred cost of acquisition of a foreign owned company in the basis period for a year of assessment, there shall be allowed a deduction of an amount equal to one-fifth of that cost for that year of assessment and for each of the four following years of assessment.

(2) For the purpose of deduction under subrule (1), the cost of acquisition of a foreign owned company is deemed to be incurred in the basis period for the year of assessment in which the date of completion of the acquisition falls as verified by the Malaysian Industrial Development Authority.

(3) Where the cost of acquisition of a foreign owned company is incurred by a pioneer company, the pioneer company may make an election that the deduction referred to in subrule (1) be allowed for the first year of assessment and four subsequent years of assessment in the post pioneer period.

(4) Where the acquired foreign owned company is disposed of within five years from the date of completion of the acquisition, the annual allowance shall be withdrawn in the respective years of assessment such allowance has been allowed.

“Non-application

(4) These Rules shall not apply to a company which submits its application to Malaysian Industrial Development Authority after 31 December 2008.”.

(Amendment Rules 2008 [P.U. (A) 81])

Made 5 August 2003

[Perb. 0.3865/325; LHDN. 01/35/(S)/42/51/231-17.3; PN(PU²)80/XXXVIII]

DR. JAMALUDIN BIN MOHD JARJIS

Second Minister of Finance

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

INCOME TAX (ALLOWANCE FOR INCREASED EXPORTS) (AMENDMENT) RULES 2003 [P.U. (A) 309]

2012-11-07T07:01:00.005-08:00

INCOME TAX (ALLOWANCE FOR INCREASED EXPORTS) (AMENDMENT)

RULES 2003 [P.U. (A) 309]

(Gazetted on 21 August, 2003)

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) (Amendment) Rules 2003.

(2) These Rules are deemed to have come into operation on 1 January 2002.

Amendment of rule 2

2. The Income Tax (Allowance for Increased Exports) Rules 1999 [P.U. (A) 128/1999] are amended in rule 2 in respect of the interpretation of “agricultural produce” by inserting after the words “ornamental fish” the words

“frozen raw prawn or shrimp, frozen cooked and peeled prawn and frozen raw cuttle fish and squid”.

Made 18 July 2003

[Perb. 0.3865/G/7(SJ.) Vol. 6(Sk.1)(4); LHDN. 01/35/(S)/42/51/82-10.1; PN(PU²)80/XXXVIII]

DR. JAMALUDIN BIN MOHD JARJIS

Second Minister of Finance

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

INCOME TAX (PROMOTION OF EXPORTS) (AMENDMENT) RULES 2003 [P.U. (A) 267]

2012-11-07T07:01:00.002-08:00

INCOME TAX (PROMOTION OF EXPORTS) (AMENDMENT) RULES 2003 [P.U. (A) 267]

(Gazetted on 17 July, 2003)

IN exercise of the powers conferred by subsection 41(1) of the Promotions of Investment Act 1986 [Act 327], the Minister makes the following rules:

Citation and commencement

1. (1) These rules may be cited as the Income Tax (Promotion of Exports) (Amendment) Rules 2003.

(2) These Rules are deemed to have effect from the year of assessment 2002.

Amendment of rule 4

2. The Income Tax (Promotion of Exports) Rules 1986, contained in the Schedule to the Act, are amended in paragraph 4(2)(e)—

(a) by substituting for the word “two” the word “three”; and

(b) by inserting after the words “accomodation and” the words “a maximum of one hundred and fifty ringgit per day for”.

Made 26 June 2003

[Perb. 0.3865/73 Vol. 21(SK.4); LHDN. 01/35/(S)/42/51/82-9; PN(PU²)451/V]

DR. JAMALUDIN BIN MOHD JARJIS

Second Minister of Finance

INCOME TAX (DEDUCTIONS FOR OVERSEAS EXPENSES FOR PROMOTION OFTOURISM) (AMENDMENT) RULES 2003 [P.U.(A) 263]

2012-11-07T07:00:00.009-08:00

INCOME TAX (DEDUCTIONS FOR OVERSEAS EXPENSES FOR PROMOTION OF

TOURISM) (AMENDMENT) RULES 2003 [P.U.(A) 263]

(Gazetted on 17 July, 2003)

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 Overseas Expenses for Promotion of Tourism) (Amendment) Rules 2003.

(2) These Rules are deemed to have effect from the year of assessment 2002.

Amendment of rule 4

2. The Income Tax (Deductions for Overseas Expenses for Promotion of Tourism) Rules 1991 [P.U. (A) 412/1991] are amended in paragraph 4(2)(d)—

(a) by substituting for the word “two” the word “three”; and

(b) by inserting after the words “one hundred” the words “and fifty”.

Made 26 June 2003

[Perb. 0.3865/G/4 Jld. 12 (SK.1); LHDN. 01/35/(S)/42/51/82-7; PN(PU²)80/XXXVIII]

DR. JAMALUDIN BIN MOHD JARJIS

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)(AMENDMENT) RULES 2003 [P.U. (A) 262]

2012-11-07T07:00:00.005-08:00

INCOME TAX (DEDUCTIONS FOR PROMOTION OF EXPORT OF SERVICES)

(AMENDMENT) RULES 2003 [P.U. (A) 262]

(Gazetted on 17 July, 2003)

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) (Amendment) Rules 2003.

(2) These Rules are deemed to have effect from the year of assessment 2002.

Amendment of rule 3

2. The Income Tax (Deductions for Promotion of Export of Services) Rules 1999 [P.U. (A) 193/1999] Notes Link are amended in paragraph 3(2)(d)—

(a) by substituting for the word “two” the word “three”; and

(b) by inserting after the words “one hundred” the words “and fifty”.

Made 26 June 2003

[Perb. 0.3865/73 (SJ.14) Vol. 2 (SK.5); LHDN. 01/35/(S)/42/51/82-36.1; PN(PU2)XXXVIII]

DR. JAMALUDIN BIN MOHD JARJIS

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 HIGHER EDUCATION) (AMENDMENT) RULES 2003 [P.U. (A) 261]

2012-11-07T07:00:00.001-08:00

INCOME TAX (DEDUCTIONS FOR PROMOTION OF EXPORT OF HIGHER

EDUCATION) (AMENDMENT) RULES 2003 [P.U. (A) 261]

(Gazetted on 17 July, 2003)

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 Higher Education) (Amendment) Rules 2003.

(2) These Rules are deemed to have effect from the year of assessment 2002.

Amendment of rule 4

2. The Income Tax (Deductions for Promotion of Export of Higher Education) Rules 2001 [P.U. (A) 185/2001] Notes Linkare amended in paragraph 4(2)(d)—

(a) by substituting for the word “two” the word “three”; and

(b) by inserting after the words “one hundred” the words “and fifty”.

Made 26 June 2003

[Perb. 0.3865/73 (SJ.14) Vol. 3 (SK.2); LHDN. 01/35/(S)/42/51/82-11.1; PN(PU²)80/XXXVIII]

DR. JAMALUDIN BIN MOHD JARJIS

Second Minister of Finance

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

STAMP DUTY (EXEMPTION) (No. 13) ORDER 2003 [P. U. (A) 255]

2012-11-07T06:59:00.003-08:00

STAMP DUTY (EXEMPTION) (No. 13) ORDER 2003 [P. U. (A) 255]

(Gazetted on 17 July, 2003)

IN exercise of the powers conferred by subsection 80(1) of the Stamp Act 1949 [Act 378], the Minister makes the following order:

Citation

1. This order may be cited as the Stamp Duty (Exemption) (No. 13) Order 2003.

Interpretation

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

“incorporated body” means—

(a) a company or a corporation registered or incorporated under the Companies Act 1965 [Act 125];

(b) a statutory body or a corporation established under a Federal or State law; and

(c) a co-operative society registered under the Co-operative Societies Act 1993 [Act 502];

“financial institution” means—

(a) a bank, a merchant bank, a finance company or a discount house licensed under the Banking and Financial Institutions Act 1989 [Act 372];

(b) an Islamic bank licensed under the Islamic Banking Act 1983 [Act 276]; and

(c) the Bank Simpanan Nasional incorporated under the Bank Simpanan Nasional Act 1974 [Act 146].

Exemption

3. Every instrument operating to—

(a) transfer, convey, assign, vest, effect or complete a disposition of any legal or equitable right, title or interest in, to or under the following rights (in this paragraph referred to as “those rights”) whether under Islamic principles or otherwise:

(i) credit card receivables, charge card receivables, credit card charges, charge card charges, finance charges, profits, loans, debts, advances of credit, other receivables, credit or financing facilities to finance or that are incurred or receivable, instalments, other payments or repayments in connection with the purchase of goods and services under credit sale or deferred payment terms or otherwise howsoever in connection with the utilization of credit cards or charge cards; and

(ii) the assignments, guarantees or other agreements or the securities or documents relating thereto,

to or in favour of—

(A) Cagamas Berhad (in this paragraph referred to as “Cagamas”) and made pursuant to a Master Sale and Purchase Agreement or any other agreement or arrangement entered into between Cagamas and a financial institution or an incorporated body; or

(B) a financial institution or an incorporated body and made pursuant to a Master Agreement or any other agreement or arrangement entered into between such financial institution or incorporated body and the original holder of those rights (in this paragraph referred to as the “first transferee” and the “original holder”) for the purchase of those rights for resale of the same to Cagamas; or

(b) transfer or retransfer, convey or reconvey, assign or reassign, vest or revest or otherwise complete a disposition of those rights, whether under Islamic principles or otherwise—

(i) from Cagamas to or in favour of the original holder, the first transferee, a financial institution, a trust corporation, a trustee, an incorporated body or the purchaser of those rights;

(ii) from the first transferee to the original holder or the purchaser of those rights after resale of those rights by Cagamas to the first transferee;

(iii) from the first transferee to the original holder, a trust corporation, a trustee or the purchasers of those rights for and on behalf of Cagamas as beneficial owner of those rights;

(iv) from the original holder, a financial institution, or an incorporated body or any other person to Cagamas, a trust corporation, a trustee or the purchaser of those rights for and on behalf of Cagamas as beneficial owner or vendor or transferor of those rights; or

(v) from a trust corporation, a trustee or the purchaser of those rights to Cagamas, the first transferee, the original holder, or the purchaser of those rights; or

(c) assign or create a charge or security, whether under Islamic principles, or otherwise over those rights to or in favour of a trust corporation, a trustee or the purchaser of those rights,

is exempted from stamp duty which would otherwise be chargeable under the Act.

4. The Stamp Duty (Exemption) Order 2003 [P.U. (A) 11/2003] is revoked.

Made 26 June 2003

[Perb. (8.09)248/39/6-5(SJ.27); LHDN. 01/34/42/68-180-1(20/02); PN(PU²)159/XXIX]

On behalf and in the name of the Minister of Finance

CHAN KONG CHOY

Deputy Minister of Finance

EXEMPTION AND REVOCATION OF EXEMPTION UNDER SECTION 6 [P.U. (B) 195]

2012-11-07T06:59:00.000-08:00

EXEMPTION AND REVOCATION OF EXEMPTION UNDER SECTION 6 [P.U. (B) 195]

IN exercise of the powers conferred by section 6 of the Service Tax Act 1975 [Act 151 ],the Minister exempts the provision of rooms for lodging or sleeping accommodation prescribed in the Second Schedule to the Service Tax Regulations [P.U.(A)52/75 ] given on a complimentary basis by any hotel operator from the whole or any part of the service tax which otherwise would have been payable.

Date of commencement

2. The exemption comes into operation on 1 June 2003.

Revocation

3. Exemption under Section 6 published in P.U.(B)248/2000 is revoked.

Made 30 May 2003

[Sulit KE.HE (117)669/26;Perb.CR(8.09)198-61 Vol.7(59); PN(PU 2 )268/III ]

On behalf and in the name of the Minister of Finance

CHAN KONG CHOY

Deputy Minister of Finance