PROMOTION OF INVESTMENTS (AMENDMENT) ACT 2014

Paragraphs 2(a) and (b), section 4, paragraph 5(a), subparagraph 5(b)(i), subsubparagraphs 5(b)(ii)(a) and (b), subparagraph 5(d)(iii), paragraphs 5(e) and (f), 6(a) and (c), sections 7, 9 and 10, paragraph 11(a), subparagraph 11(b)(ii), sections 13 and 18, paragraphs 19(a), (b) and (c), subparagraph 21(a)(iv), sections 22, 23, 24, 25, 28, 30 and 37, subparagraphs 41(a)(ii) and (b)(ii), sections 45, 46 and 49 of this Act are deemed to have come into operation on 1 January 2011.

Section 3, paragraphs 5(c) and 6(b), sections 12, 20, 26

and 43 of this Act are deemed to have come into operation on 1 January 2012.

promotion of investments (amendment)

act 2014

Subparagraphs 5(d)(i) and (ii), 5(g)(ii) and (iii), subsubparagraphs 5(g)(iv)(b) and (c), subparagraph 11(b)(i), paragraphs 11(c) and 19(d), subparagraphs 21(a)(i), (ii) and (iii), paragraph 21(b), section 27, subparagraphs 41(a)(i) and (b)(i), subparagraph 44(a)(i), paragraphs 44(b) and (c), subparagraphs 50(a)(ii) and (iii) and 50(b)(ii) and (iii) of this Act are deemed to have come into operation on 8 September 2007.

Subparagraph 5(g)(i) of this Act, in relation to the deletion of subsections 5(1b), 5(1de), 27b(1) and 27l(1) of the principal Act, is deemed to have come into operation on 1 January 2011.

Subsubparagraph 5(g)(iv)(A) of this Act, in relation to the deletion of subsections 27b(1) and 27l(1) of the principal Act, is deemed to have come into operation on 1 January 2011.

Subparagraph 5(g)(i) of this Act, in relation to the deletion of subsections 5(1da) and 27h(1) of the principal Act, is deemed to have come into operation on 1 January 2012.

Subsubparagraph 5(g)(iv)(a) of this Act, in relation to the deletion of subsection 27h(1) of the principal Act, is deemed to have come into operation on 1 January 2012.

Paragraph 6(d) of this Act, in relation to the deletion of subsection 6(1ad) of the principal Act, is deemed to have come into operation on 1 January 2012.

Paragraph 6(d) of this Act, in relation to the deletion of subsection 6(1ah) of the principal Act, is deemed to have come into operation on 1 January 2011.

Section 14 of this Act, in relation to the deletion of sections 21d, 21da and 21k of the principal Act, is deemed to have come into operation on 1 January 2011.

Section 14 of this Act, in relation to the deletion of section 21g of the principal Act, is deemed to have come into operation on 1 January 2012.

Section 15, paragraphs 16(a) and (b), 33(b), 34(b), sections 35, 36, 38, 39 and 40, paragraph 41(c) and section 42 of this Act are deemed to have come into operation on 20 August 2011.

Promotion of Investments (Amendment)

Paragraph 16(b) of this Act, in relation to the deletion of sections 21d, 21da and 21k of the principal Act, is deemed to have come into operation on 1 January 2011.

Paragraph 16(b) of this Act, in relation to the deletion of section 21g of the principal Act, is deemed to have come into operation on 1 January 2012.

Paragraphs 17(a) and (b) of this Act, in relation to the deletion of subsections 21d(2), 21da(2) and 21k(2) of the principal Act, are deemed to have come into operation on 1 January 2011.

Paragraphs 17(a) and (b) of this Act, in relation to the deletion of subsection 21g(2) of the principal Act, are deemed to have come into operation on 1 January 2012.

Paragraph 32(a) of this Act, in relation to the deletion of section 27b and subsections 27b(1) and (2) and section 27l and subsections 27l(1) and (2) of the principal Act, is deemed to have come into operation on 1 January 2011.

Paragraph 32(a) of this Act, in relation to the deletion of section 27h and subsections 27h(1) and (2) of the principal Act, is deemed to have come into operation on 1 January 2012.

Subparagraph 32(b)(i) of this Act, in relation to the deletion of subsections 27b(1) and 27l(1) of the principal Act, is deemed to have come into operation on 1 January 2011.

Subparagraph 32(b)(i) of this Act, in relation to the deletion of subsection 27h(1) of the principal Act, is deemed to have come into operation on 1 January 2012.

Subparagraph 32(b)(ii) of this Act, in relation to the deletion of subsections 27b(1) and (2) and 27l(1) and (2) of the principal Act, is deemed to have come into operation on 1 January 2011.

Subparagraph 32(b)(ii) of this Act, in relation to the deletion of subsections 27h(1) and (2) of the principal Act, is deemed to have come into operation on 1 January 2012.

Paragraphs 33(a) and 34(a) of this Act are deemed to have come into operation on 31 August 2007.

Paragraph 33(c) of this Act is deemed to have come into operation on 31 March 2011.

Section 48 of this Act, in relation to the deletion of subsections 29c(7) and 29m(4) of the principal Act, is deemed to have come into operation on 1 January 2011.

Section 48 of this Act, in relation to the deletion of subsection 29i(4) of the principal Act, is deemed to have come into operation on 1 January 2012.

Subparagraph 50(a)(i) of this Act, in relation to the deletion of sections 27b and 27l, paragraphs 29c(2)(b) and (c)

and 29m(3)(b) of the principal Act, is deemed to have come into operation on 1 January 2011.

Subparagraph 50(a)(i) of this Act, in relation to the deletion of section 27h and paragraph 29i(3)(b) of the principal Act, is deemed to have come into operation on 1 January 2012.

Subparagraph 50(a)(i) of this Act, in relation to the deletion of sections 27i and 27n and paragraph 29o(3)(b) of the principal Act, is deemed to have come into operation on 8 September 2007.

Subparagraph 50(b)(i) of this Act, in relation to the deletion of sections 27b and 27l of the principal Act, is deemed to have come into operation on 1 January 2011.

Subparagraph 50(b)(i) of this Act, in relation to the deletion of section 27h of the principal Act, is deemed to have come into operation on 1 January 2012.

Subparagraph 50(b)(i) of this Act, in relation to the deletion of sections 27i and 27n of the principal Act, is deemed to have come into operation on 8 September 2007.

Promotion of Investments (Amendment)

7

Amendment of section 2

by deleting the definition of “promoted area”;

by deleting the definition of “industrial linkage programme”;

by inserting after the definition of ‘ “Area Fishermen’s

Association”, “Federal Fishermen’s Association” and “State

Fishermen’s Association” ’ the following definition:

‘ “company” means a company—

incorporated in Malaysia under the Companies

Act 1965 [Act 125]; and

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

in the definition of ‘ “small company” or “medium company” ’—

by deleting the words ‘ or “medium company” ’;

and

in the shoulder note—

by deleting the words “5(1da),” and “and 26h”;

and

by—

by deleting the words “5(1da),” and “and 26h”;

and

by deleting subsection (1b);

in subsection (1d)—

in paragraph (a), by deleting the words “, or any company participating in a promoted activity or producing a promoted product in an industrial linkage programme,”; and

by deleting the words “or 5(1b)” and

“or 27b(1)”; and

in the proviso, by substituting for the words

“, 29(2)(c), 29c(2)(b) or 29c(2)(c)” the words “or 29(2)(c)”;

by deleting subsection (1da);

in the proviso to subsection (1db)—

by inserting after the words “in the generation of renewable energy” the words “or provision of energy conservation services”;

in subparagraph (ii) of the proviso to paragraph (1dd)(a), by deleting the words “29c,” and “, 29m”;

by deleting subsection (1de); and

in subsection (1e)—

by deleting the words “27b(1),”, “27h(1),”,

“or 27l(1)”, “(1b),”, “(1da),” and “, (1de)”;

by deleting the words “27b(1),”, “27h(1),”

and “or 27l(1)”;

by inserting after the words “27i(1),” the words “27i(1a),”; and

by inserting after the words “27k(1)” the words “or section 27n”.

Amendment of section 6

in subsection (1), by deleting the words “, 5(1b)”;

by deleting subsection (1ad);

by deleting subsection (1ah); and

in paragraph (3)(a), by deleting the words “(1ad),” and

“, (1ah)”.

Amendment of section 7

by substituting for the shoulder note the following shoulder note:

“Computation of income during tax relief period in respect of pioneer status granted under subsection 6(1)

for an application under subsection 5(1d)”;

in subsection (1)—

by inserting after the words “testing laboratory” the words “or upgrading an existing medical devices testing laboratory in Malaysia,”; and

in subsection (2)—

in paragraph (b), by substituting for the full stop at the end of the paragraph a colon; and

in subsection (1), by substituting for the words

“section 22” the words “section 22a”; and

in subsection (2), by substituting for the words

“section 22” the words “section 22a”.

Amendment of section 24

by substituting for the words “section 22” wherever they appear the words “section 22a”; and

in paragraph (c), by deleting the words “21d, 21da,”,

“21g,” and “, 21k”.

Amendment of section 25

in subsection (1), by deleting the words “21d(2), 21da(2),”,

“21g(2),” and “, 21k(2)”; and

in paragraph (2)(b), by deleting the words “21d(2),

21da(2),”, “21g(2),” and “, 21k(2)”.

Deletion of section 26b

by substituting for the shoulder note the following shoulder note:

“Application for approval for investment tax allowance to a high technology company or a company establishing or upgrading medical devices testing laboratory”;

in subsection (1), by deleting the words “or any company participating in a promoted activity or producing a promoted product in an industrial linkage programme”;

in subsection (2), by deleting the words “or 5(1b)” and

“or 27b(1)”; and

in subsection (2a), by inserting after the words

“investment tax allowance” the words “provided that such application is received from 8 September 2007 until 31 December 2012”.

Deletion of section 26h

in subsection (1a)—

by substituting for the words “the Promotion of

Investments (Promoted Activities and Promoted

Products for Selected Industries) Order 2008

[P.U. (A) 458/2008]” the words “section 4d”;

by inserting after subsection (1a) the following subsection:

“(1b) Notwithstanding subsections (1) and (1a), where an application is made by a company participating or intending to participate in Malaysia in the generation of renewable energy for own consumption, which has been prescribed as a promoted activity under section 4d, 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 subsection 27i(1a) 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 subsections 27i(1a), (2) and (3) and the period as prescribed under subsections 29j(2a), (3a) and (4) has ended, such application shall be considered by the

Minister if the application is received from 8

September 2007 until 31 December 2015.”.

Amendment of section 26k

in the shoulder note, by substituting for the words

“subsection 26i(1)” the words “subsections 26i(1), (1a)

and (1b)”;

in subsection (1)—

by substituting for the words “subsection 26i(1)”

the words “subsections 26i(1) and (1a)”; and

Promotion of Investments (Amendment)

where the Minister is satisfied that the company was engaged in an activity or in the production of a promoted product, or had otherwise incurred capital expenditure in relation thereto, from a date prior to the date from which the activity or product was deemed as a promoted activity or promoted product under section 4d in relation to renewable energy for own consumption, the approval may be granted retrospectively from a date not earlier than the date such activity or product is prescribed by the

Minister as a promoted activity or promoted product under section 4d; 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 26i(1b) is received by the Minister.”; and

by inserting after subsection (1) the following subsection:

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

Provided that—

in subsection (2), by substituting for the words “subsection

” the words “subsections (1) and (1a)”.

Deletion of section 27l

An application for an extension under subsection (1)

shall be made before the expiry of the period of twenty-four months or such extended period as the Minister may allow.

A company requesting for the determination of the effective date for its investment tax allowance under subsection (1) shall state the capital expenditure incurred by the company.

The capital expenditure referred to in subsection (3)

is as defined in subsections 29(7) and 29(8).

Promotion of Investments (Amendment)

Where a company has been granted the determination of the effective date for its investment tax allowance under subsection (1), the company shall, within the period of the investment tax allowance approved by the Minister of

Finance, provide the Minister of Finance with particulars as may be determined for the purposes of compliance of any of the conditions imposed.”.

Amendment of section 28

in subsection (1), by deleting the words “27b,”, “27h,”,

“27l,”, “27b(1), (2),”, “27h(1), (2),” and “27l(1), (2),”;

and

in subsection (2)—

by deleting the words “27b(1),”, “27h(1),” and

“27l(1),”; and

”, “27h(1), (2),” and “27l(1), (2),”.

Amendment of section 29

in subsection (5)—

by substituting for the colon at the end of the subsection a full stop; and

in subsection (6), by substituting for the words

“section 22” the words “section 22a”; and

in paragraph (7)(iii), by inserting after the words “incurred on the” the words “purchase of a building or”.

Amendment of section 29a

in subsection (6)—

by substituting for the colon at the end of the subsection a full stop; and

in subsection (7), by substituting for the words

“section 22” the words “section 22a”.

Amendment of section 29aa

in subsection (1)—

by inserting after the words “new and emerging technologies or in respect of” the words “a company establishing a medical devices testing laboratory or upgrading an existing medical devices testing laboratory in Malaysia or in respect of”; and

in the proviso to subsection (2)—

by inserting after the words “new and emerging technologies or in respect of” the words “a company establishing a medical devices testing laboratory or upgrading an existing medical devices testing laboratory in Malaysia or in respect of”; and

in subsection (5), by substituting for the words

“section 22” the words “section 22a”.

Amendment of section 29h

in subsection (2)—

by substituting for the words “section 27i” the words “subsection 27i(1)”; and

by inserting after subsection (2) the following subsection:

“(2a)  Where a company which has been granted approval under subsection 27i(1a) has incurred, in the basis period for a year of assessment in respect of a promoted activity or promoted product in relation to renewable energy for own consumption, capital expenditure for that purpose, the company shall be given for that year of assessment an investment tax allowance of one hundred per cent of that expenditure.”;

and

by inserting after subsection (3) the following subsection:

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

shall be given only for the year of assessment in the basis period 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 or promoted product, that expenditure shall be deemed to be incurred in the basis period in which it commences to carry on the business;

and

Promotion of Investments (Amendment)

in subsection (1)—

by deleting the words “27b,”, “27h, 27i,”,

“, 27l,”, “or 27n”, “29c(2)(b) or (c),”,

“29i(3)(b),”, “29m(3)(b),” and “or 29o(3)(b)”;

by substituting for the comma after the words

“6(a)(ii)” the word “or”; and

in subsection (3)—

by deleting the words “27b,”, “27h, 27i,”, “, 27l,”

and “or 27n”;

The definition of "company" as introduced in paragraph 2(c)

of this Act shall not apply to the company referred to in subsection (1).

KUALA LUMPUR