Finance Act 1994 · Updated to 1 Jan 2006 · Chapter II · Amendments to the Income Tax Act 1967
Finance Act 1994 · Updated to 1 Jan 2006 · Chapter II · Amendments to the Income Tax Act 1967
Official textFrom Laws of Malaysia Online, unchanged
Schedule 7A to the principal Act is amended²
by substituting for paragraph 1 the following paragraph:
³1. Where a company which is resident in Malaysia for the basis year for a year of assessment has incurred in the basis period for that year of assessment capital expenditure on a factory, plant or machinery, used in
Malaysia for the purposes of any qualifying project, there shall be given to the company for that year of assessment a reinvestment allowance of fifty per cent of that expenditure:
Provided that in the case of a company other than a small scale company as defined under subsection 33(4) of the Promotion of Investments Act 1986
[Act 327] whose basis period for the year of assessment 1995 includes a period prior to 1 January 1994, the reinvestment allowance to be given shall be the total of²
forty per cent of the capital expenditure incurred prior to 1 January 1994; and
fifty per cent of the capital expenditure incurred after 31 December 1993:
Provided further that capital expenditure shall not include capital expenditure incurred on plant or machinery where such plant or machinery is provided wholly or partly for the use of a director or an individual who is a member of the management, administrative or clerical staff.´;
and
by substituting for subparagraph 2(b) the following subparagraph:
³(b) shall be given only in respect of expenditure incurred from 1 January 1979.´.
Chapter III