Promotion of Investments (Amendment) Act 2011

Paragraphs 2(a),(b) and (f), paragraph 3(b), paragraphs 14(a) and (b), and sections 21, 26, 27, 31, 35, 37, 42, 43, 46, 49 and 50 are deemed to have come into operation on 8 September 2007.

Section 33 is deemed to have come into operation on 21 May 2003.

by inserting after paragraph (1D) (b) the following paragraph:

"（c）Any company or person proposing to register a company in Malaysia, being desirous of establishing a medical devices testing laboratory in

Malaysia, may make an application in writing to the Minister for pioneer status provided that such application is received from 8 September 2007 until 31 December 2012.";

in subsection (1DB)—

by inserting after the words "participating in a promoted activity or" the words "of producing";

a pioneer company or a company which has been granted approval for the purposes of an investment tax allowance under section 271 participating in the same promoted activity as that company;

in subsection (1DC), by inserting after the words "participating in a promoted activity or" the words "of producing";

in paragraph (1DD) (a)—

by inserting after the words "in relation to a promoted activity or" the words "of producing"; and

in subsection (1DE)—

by deleting the words "an existing promoted activity or promoted product relating to"; and

by deleting subsection (1DG);

in subsection (1E)—

by substituting for the words "， $ 2 7 \mathrm {L} (1) $ or section 270" the words "or $ 2 7 \mathrm {L} (1) $";

in subsection (2), by substituting for the words "subsection (1) or (1A)" the words "this section".

Amendment of section 6

in subsection (1AH), by deleting the words "an existing promoted activity or promoted product relating to";

by deleting subsection (1AJ); and

in paragraph (3)(a), by substituting for the words "，(1AI) or (1AJ)" the words "or (1AI)".

by substituting for subsection (3) the following subsection:

"(3) Where an amount is found under subsection (1) or under subsections (1) and (2), as the case may be, or where such amount is reduced by an adjusted loss from a pioneer business of that company pursuant to subsection 25(2), the company shall maintain a statement showing that amount in question or reduced amount in question, as the case may be."; and

by deleting subsection (4).

an adjustment to the statutory income of the pioneer company ascertained under section 21 for that year of assessment; or

an assessment for that year of assessment as appears to him to be necessary in order to counteract any benefit of exemption obtained before the adjustment of that loss.".

Amendment of section 21B

by substituting for subsection (5) the following subsection:

"（5）The company shall maintain a statement showing the amount of income found under subsection (3)."; and

by deleting subsection (6).

by substituting for subsection (4) the following subsection:

"（4）The company shall maintain a statement showing the amount of income found under subsection (2) or (3), as the case may be."; and

by deleting subsection (5).

Amendment of section 21D

by substituting for subsection (5) the following subsection:

"（5）The company shall maintain a statement showing the amount of income found under subsection (3)."; and

by deleting subsection (6).

by substituting for subsection (4) the following subsection:

"（4）The company shall maintain a statement showing the amount of income found under subsection (2) or (3), as the case may be."; and

by deleting subsection (5).

Amendment of section 21F

in the shoulder note, by substituting for the words "or company participating in industrial linkage programme" the words "company participating in industrial linkage programme, etc. under subsection 6(1) for an application under subsection 5(1D)";

by substituting for subsection (1) the following subsection:

"(1) This section shall apply to a high technology company or a company participating in a promoted activity or producing a promoted product in an industrial linkage programme or a company establishing a medical devices testing laboratory which has been granted pioneer status under subsection 6(1) for an application under subsection 5(1D).";

by substituting for subsection (4) the following subsection:

"（4）The company shall maintain a statement showing the amount of income found under subsection (2) or (3), as the case may be."; and

by deleting subsection (5).

in subsection (2), by substituting for the words " (4), (5) and (6)" the words " (3), (4) and (5)";

in subsection (3), by substituting for the words " (3), (4) and (5)" the words " (3) and (4)";

in subsection (4), by substituting for the words "subsections 21c(2A), (3), (4) and (5)" the words "subsections 21c(2), (2A), (3) and (4)"; and

in subsection (5), by substituting for the words "under subsection 21c(2A), and subsections 21c(3), (4) and (5)" the words "of the company for that year of assessment, and subsections 21c(2), (2A), (3) and (4)".

Amendment of section 21k

in the shoulder note, by deleting the words "an existing promoted activity or promoted product relating to"; and

in subsection (2), by substituting for the words " (3), (4) and (5)" the words " (3) and (4)".

in subsection (3), by deleting the words " , if the Director General is satisfied with the entries in the exempt account,";

by substituting for subsection (5) the following subsection:

"（5）The company shall keep a copy of the exempt account until the Director General is satisfied that there is no further need to maintain the exempt account."; and

in subsection (6), by deleting the words " , to the extent that the Director General is satisfied that the dividends so paid are paid out of that amount,".

Amendment of section 24

in paragraph (b), by substituting for the comma at the end of the paragraph the words "; or";

by inserting after paragraph (b) the following paragraph:

"（c）any other adjustment to the statutory income of the pioneer company ascertained under section 21, 21B, 21BA, 21C, 21D, 21DA, 21E, 21F, 21G, 21H, 21I, 21J, 21K or 21L,"; and

by substituting for the words "direction or cancellation, make such additional assessments upon any person" the words "direction, cancellation or adjustment, make such additional assessments upon any company".

Amendment of section 25

in subsection (1), by substituting for the words "21K(2), 21L(2) or 21M(2)" the words "21K(2) or 21L(2)";

in paragraph (2)(b), by substituting for the words "21K(2), 21L(2) or 21M(2)" the words "21K(2) or 21L(2)"; and

in the English language text, in paragraph (b) of the proviso to subsection (4), by substituting for the words "date of surrendering of" the words "date of surrender of the".

Amendment of section 26F

in the shoulder note, by substituting for the words "or company participating in industrial linkage programme" the words "company participating in industrial linkage programme or company establishing or upgrading a medical devices testing laboratory"; and

by inserting after subsection (2) the following subsection:

"（2A）Any company intending to establish a medical devices testing laboratory or upgrade an existing medical devices testing laboratory in Malaysia may make an application in writing to the Minister for approval for purposes of an investment tax allowance.".

Amendment of section 261

by inserting after subsection (1) the following subsection:

"（1A）Notwithstanding subsection (1), where an application is made by a company participating or intending to participate in Malaysia in the generation of renewable energy, which has been prescribed as a promoted activity under the Promotion of Investments (Promoted Activities and Promoted Products for Selected Industries) Order 2008 [P.U. (A) 458/2008], and that company is controlled directly or indirectly by—

a pioneer company or a company which has been granted approval for the purposes of an investment tax allowance under section 271 participating in the same promoted activity as that company;

a company granted pioneer status in relation to the same promoted activity as that company; or

a post-pioneer company or a company which has been granted approval for the purposes of an investment tax allowance under section 271 and the period as prescribed under section 291 has ended, such application shall be considered by the Minister if the application is received from 8 September 2007 until 31 December 2010.";

in subsection (3)一

by deleting the words "in the production of a";

in subsection (4), by substituting for the words "subsection (1)" the words "this section".

Amendment of section 26J

in subsection (3)一

by deleting the words "in the production of a";

in subsection (4), by substituting for the words "subsection (1)" the words "this section".

Amendment of section 26k

in subsection (1), in paragraph (b) of the proviso, by inserting after the words "for that company" the words "in relation to the promoted activity or promoted product";

in subsection (3)一

by deleting the words "or services thereof";

in subsection (4)—

by deleting the words "in the production of a";

in subsection (5), by substituting for the words "subsections (1) and (2)" the words "this section".

Amendment of section 26L

in the shoulder note, by deleting the words "an existing promoted activity or promoted product relating to";

in subsection (1), by deleting the words "an existing promoted activity or existing promoted product relating to";

in subsection (2), by deleting the words "in a promoted area under section 4c"; and

in subsection (3), by substituting for the words "subsection (1)" the words "this section".

by inserting after the words "engaged in an activity" the words "or in the production of a product";

by inserting after the words "from such activity" the words "or product"; and

in the English language text, by inserting after the words "a promoted activity" the words "or promoted product".

Amendment of section 27c

in subsection (1), by substituting for the proviso the following proviso:

"Provided that一

where the Minister is satisfied that the company was engaged in an activity or had otherwise incurred capital expenditure in relation thereto, from a date prior to the date from which the activity was deemed as a promoted activity under section 4B, the approval may be granted retrospectively from a date not earlier than the date from which the company has been engaged in that activity or the capital expenditure had been incurred in relation thereto; and

no approval shall be granted retrospectively under subsection (1) or under the foregoing proviso from a date which is earlier than three years from the date the application under subsection 26c(1) is received by the Minister."; and

in subsection (3), by substituting for the words "subsections (1) and (2)" the words "this section".

Amendment of section 27E

in subsection (1), by substituting for the proviso the following proviso:

"Provided that—

where the Minister is satisfied that the company was engaged in an activity or had otherwise incurred capital expenditure in relation thereto, from a date prior to the date from which the activity was deemed as a promoted activity under section 4B, the approval may be granted retrospectively from a date not earlier than the date from which the company has been engaged in that activity or the capital expenditure had been incurred in relation thereto; and

no approval shall be granted retrospectively under subsection (1) or under the foregoing proviso from a date which is earlier than three years from the date the application under subsection 26E(1) is received by the Minister."; and

in subsection (3), by substituting for the words "subsections (1) and (2)" the words "this section".

Amendment of section 27F

in the shoulder note, by inserting after the words "subsection 26F(1)" the words "or (2A)";

in subsection (1), by substituting for the proviso the following proviso:

"Provided that—

where the Minister is satisfied that the company was engaged in an activity or had otherwise incurred capital expenditure in relation thereto, from a date prior to the date from which the activity was deemed as a promoted activity under section 4, the approval may be granted retrospectively from a date not earlier than the date from which the company has been engaged in that activity or the capital expenditure had been incurred in relation thereto; and

no approval shall be granted retrospectively under subsection (1) or under the foregoing proviso from a date which is earlier than three years from the date the application under subsection 26F(1) is received by the Minister.";

by inserting after subsection (1) the following subsection:

“(1A) The Minister may grant approval in respect of an application for an investment tax allowance made under subsection 26F(2A) subject to such terms and conditions as he deems fit:

Provided that—

where the Minister is satisfied that the company had established a medical devices testing laboratory or had upgraded an existing medical devices testing laboratory, or had otherwise incurred capital expenditure in relation thereto, the approval may be granted retrospectively from a date not earlier than 8 September 2007; and

no approval shall be granted retrospectively under subsection (1A) or under the foregoing proviso from a date which is earlier than three years from the date the application under subsection 26F(2A) is received by the Minister.";

in subsection (2), by substituting for the words "subsection (1)" the words "subsections (1) and (1A)"; and

in subsection (3), by substituting for the words "subsections (1) and (2)" the words "this section".

Amendment of section 27G

in subsection (1), by substituting for the proviso the following proviso:

"Provided that—

where the Minister is satisfied that the company was engaged in an activity or had otherwise incurred capital expenditure in relation thereto, from a date prior to the date from which the activity was deemed as a promoted activity under section 4B, the approval may be granted retrospectively from a date not earlier than the date from which the company has been engaged in that activity or the capital expenditure had been incurred in relation thereto; and

no approval shall be granted retrospectively under subsection (1) or under the foregoing proviso from a date which is earlier than three years from the date the application under subsection 26G(1) is received by the Minister."; and

in subsection (4), by substituting for the words "subsections (1), (2) and (3)" the words "this section".

Amendment of section 271

in subsection (1), in paragraph (a) of the proviso, by inserting after the words "engaged in an activity" the words "or in the production of a promoted product"; and

in subsection (3), by substituting for the words "subsections (1) and (2)" the words "this section".

Amendment of section 27J

in subsection (1), in paragraph (a) of the proviso, by inserting after the words "engaged in an activity" the words "or in the production of a promoted product"; and

in subsection (3), by substituting for the words "subsections (1) and (2)" the words "this section".

Amendment of section 27k

in subsection (1), in the proviso, by inserting after the words "engaged in an activity" the words "or in the production of a promoted product,"; and

in subsection (4), by substituting for the words "subsections (1), (2) and (3)" the words "this section".

Amendment of section 27L

in subsection (1), by substituting for paragraph (a) of the proviso the following paragraph:

"（a） the approval may be granted retrospectively from a date not earlier than 11 September 2004; and"; and

in subsection (3), by substituting for the words "subsections (1) and (2)" the words "this section".

in subsection (1), in paragraph (a) of the proviso—

by inserting after the words "in relation thereto," the words "from a date prior to the date from which the activity was deemed as a promoted activity,";

in subsection (3), by substituting for the words "subsections (1) and (2)" the words "this section".

in subsection (1)

by substituting for the words " $ 2 7 \mathrm{M}, $ $ 2 7 \mathrm{N} $ or $ 2 7 \mathrm{O} $ " the words " $ 2 7 \mathrm{M} $ or $ 2 7 \mathrm{N} $ ";

in subsection (2)一

by inserting after the words " $ 2 7{\mathrm{F}}(1), $ " the words $ " (1{\mathrm{A}}), $ ";

by inserting after the words "27F(1)," the words "（1A）,"; and

by deleting the words "，270(1)，(2)”.

by substituting for subsection (2) the following subsection:

"(2) Where a company which has been granted approval under section 27L has incurred, in the basis period for a year of assessment in respect of a manufacturing activity, capital expenditure for the purpose of relocating that manufacturing activity, the company shall be given for that year of assessment an investment tax allowance of one hundred per cent of that expenditure."; and

in subsection (3), in subparagraph (b)(i) of the proviso, by substituting for the words "promoted activity or promoted product" the words "manufacturing activity".

Amendment of section 290

by inserting after subsection (2) the following subsection:

"（2A）Notwithstanding subsection (2), for an application received from 8 September 2007 until 31 December 2010, the company shall be given for that year of assessment an investment tax allowance of one hundred per cent of that expenditure.";

by substituting for subsection (3) the following subsection:

“(3) An allowance for expenditure given under subsection (2) or (2A)—

shall be given only in the basis period for the year of assessment for which that expenditure was incurred; and

shall be given in respect of expenditure incurred within five years from the date from which the approval is to take effect:

Provided that where a company incurs capital expenditure from the date from which the approval is to take effect referred to in paragraph (b) in relation to a business which it is about to carry on in respect of a promoted activity, that expenditure shall be deemed to be incurred in the basis period in which it commences to carry on the business and where the company incurs capital expenditure—

prior to its application under section 26N and the approval under paragraph (a) of the proviso to subsection 27N(1), the allowance is granted retrospectively from a date not earlier than 1 October 2005; or

by substituting for subsection (6) the following subsection:

"（6）For the purposes of subsection (2) and subparagraph (3)(b)(i) of the proviso, subsections 29A(5), (6) and (7) shall apply mutatis mutandis."; and

by inserting after subsection (6) the following subsection:

“(7) For the purposes of subsection (2A) and subparagraph (3)(b)(ii) of the proviso, subsections 29AA(4), (5) and (6) shall apply mutatis mutandis."

in subsection (1)—

by substituting for the words "27M, 27N or 270" the words "27M or 27N"; and

in subsection (3), by substituting for the words " $ 2 7 \mathrm{M}, $ $ 2 7 \mathrm{N} $ or 27o" the words " $ 2 7 \mathrm{M} $ or $ 2 7 \mathrm{N} $ ".