Section 60D — AKTA KEWANGAN 1990

(2)

Paragraphs 5 and 6 of Schedule 7A shall apply mutatis mutandis to the amount exempt under subsection (1).

(3)

Where a venture capital company incurs a loss in respect of a disposal of shares in a venture company in the basis period for a year of assessment, there shall not be made any deduction under section 43(2) or 44(2) in respect of such loss in computing the aggregate income or total income of the venture capital company, as the case may be.

(4)

In ascertaining the total income of the venture capital company for the basis period for a year of assessment, there shall be deducted before any deduction falling to be made under section 44 (1) (c) an amount in respect of expenses incurred by that company during that period, which amount shall be determined in accordance with the formula

$$

\mathrm {A} \times \frac {\mathrm {B}}{4 \mathrm {C}},

$$

A is the total of the permitted expenses incurred for that basis period;

B is the gross income consisting of dividend, interest and rent chargeable to tax for that basis period; and

C is the aggregate of the gross income consisting of dividend (whether exempt or not), interest and rent, and gains made from the disposal of

KEWANGAN shares in. a venture company (whether chargeable to tax or not) for that basis period:

Provided that where, by reason of an absence or insufficiency of aggregate income for that year of assessment, effect cannot be given or cannot be given in full to any deduction falling to be made to the venture capital company under this section for that year, that deduction which has not been so made shall not be made to the company for any subsequent year of assessment.

(5)

In this section—

"permitted expenses" means expenses incurred by the venture capital company in respect of—

(a)

directors' fees;

(b)

wages, salary, allowances;

(c)

management and advisory fees paid to fund managers;

(d)

secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage; and

(e)

rent and other expenses incidental to the maintenance of an office, which are not deductible under section 33 (1);

"venture capital company" means a company, incorporated in Malaysia, which—

(a)

is resident in Malaysia for the basis year for a year of assessment;

(b)

holds shares exclusively in a venture company, the shares in which are not listed for quotation in the official list of a stock exchange in Malaysia at the time of acquisition of such shares by that venture capital company; and

(c)

is approved by the Minister for the purposes of this section;

"venture company" means a company incorporated in Malaysia which—

(a)

is resident in Malaysia for the basis year for a year of assessment; and

(b)

is involved in any high-risk venture or new technology in relation to a product or activity which the Minister is satisfied would promote or enhance the economic or technological development of Malaysia.