Malaysia legislation
Section 29h
Section 29h
(2)
An allowance for expenditure given under subsection
(1)
—
(a)
subject to subsection (4), shall be given only for the year of assessment in the basis period for which that expenditure was incurred;
(b)
shall be given in respect of expenditure incurred within ten 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 (2)(b) in relation to a business which it is about to carry on in respect of an activity relating to technical or vocational training, that expenditure shall be deemed to be incurred in the basis period in which it commences to carry on the business.
24
Act 531
(3)
Where an allowance is given to a company under subsection (1) for a year of assessment, so much of the statutory income of the business of the company in respect of an activity relating to technical or vocational training for that year of assessment as is equal to the amount of the allowance (or to the aggregate amount of any such allowance, as the case may be) shall be exempt from tax under the principal Act:
Provided that the amount so exempt shall not exceed seventy per cent of the statutory income of that business of the company for that year of assessment.
(4)
Where, by reason of an insufficiency or absence of statutory income of the business of the company in respect of an activity relating to technical or vocational training for a year of assessment, effect cannot be given or cannot be given in full to any allowance or allowances to which the company is entitled under this section for that year in relation to the source consisting of that business, then, notwithstanding subsections (1), (2) and (3), so much of the allowance or allowances in question as cannot be given for that year shall be deemed to be an allowance to be given to the company under this section for the first subsequent year of assessment for which there is statutory income from that business, and so on for subsequent years of assessment until the company has received the whole of the allowance or allowances to which it is so entitled.
(5)
Where any income is exempt from tax by virtue of subsection (3), section 23 shall apply to that income (with any necessary modifications) as it applies to income exempt under section 22.
(6)
For the purposes of this section and subject to subsection (7), “capital expenditure”, in relation to technical or vocational training, means capital expenditure incurred on a building or on any plant and machinery used in Malaysia in connection with and for the purposes of an activity relating to training.
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Finance
(7)
Notwithstanding subsection (6), “capital expenditure”
shall not include capital expenditure incurred on buildings
(which are used as living accommodation for persons), plant and machinery where such buildings, plant or machinery are provided wholly or partly for the use of a director or an individual who is a member of the management, administrative or clerical staff.”.
Amendment of section 37