KAEDAH-KAEDAH CUKAI PENDAPATAN (POTONGAN BAGI KOS PENGAMBILAN SYARIKAT MILIK ASING) 2013

“pengilangan” mempunyai erti yang sama yang diberikan kepadanya dalam perenggan 9 Jadual 7A Akta dibaca bersama Kaedah-Kaedah Cukai Pendapatan

(Penetapan Aktiviti yang Dikecualikan daripada Takrif “Pengilangan”) 2012

[P.U. (A) 23/2012];

“perniagaan” ertinya perniagaan pengilangan atau penyediaan perkhidmatan

(tidak termasuk kewangan dan kemudahan) yang disebut dalam perenggan 3(b);

“syarikat milik asing” ertinya suatu syarikat sebagaimana yang diperuntukkan di bawah kaedah 4;

“syarikat milik tempatan”

ertinya suatu syarikat sebagaimana yang diperuntukkan di bawah kaedah 3;

“teknologi tinggi” ertinya teknologi baru dan membangun.

3

Tertakluk kepada kaedah 5, syarikat milik tempatan yang layak mendapat potongan di bawah Kaedah-Kaedah ini ialah suatu syarikat yang⎼⎼

Syarikat milik asing yang dimaksudkan bagi maksud mendapat potongan di bawah Kaedah-Kaedah ini ialah suatu syarikat yang terletak di luar Malaysia⎼⎼

Schedule 7A of the Act read together with the Income Tax (Prescription of Activity

Excluded from the Definition of “Manufacturing”) Rules 2012 [P.U. (A) 23/2012];

“business” means the business of manufacturing or provision of services

(excluding financial and utilities) referred to in paragraph 3(b);

“foreign owned company” means a company as provided under rule 4;

“locally owned company” means a company as provided under rule 3;

“high tecnology” means new and emerging technology.

Locally owned company 3.

Subject to rule 5, a locally owned company eligible for deduction under these

Rules is a company which is⎼⎼

9

(a)

incorporated under the Companies Act 1965 [Act 125] and resident in

Malaysia; and

(b)

carrying on the business of manufacturing of product or the provision of selected services in Malaysia approved by the Minister—

(i)

for a company which is not listed on the stock exchange established under subsection 15(2) of the Capital Markets and

Services Act 2007 [Act 671], which at least sixty per cent of its paid-up capital in respect of ordinary shares are directly owned by

Malaysian citizen; or

(ii)

for a company which is listed on the stock exchange established under subsection 15(2) of the Capital Markets and Services

Act 2007—

(A)

which at least sixty per cent of its paid-up capital in respect of ordinary shares are directly owned by the Malaysian citizen on the first day of listing on the stock exchange; and

(B)

which at least fifty per cent of its ordinary shares are directly owned by the Malaysian citizen.

Foreign owned company 4.

A foreign owned company referred to for the purpose of deduction under these

Rules is a company located outside Malaysia⎼⎼

(a)

which is established under any written law relating to the establishment of a company outside Malaysia;

(b)

which is wholly owned, directly or indirectly, by non-Malaysian citizen;

and

10

(c)

which owns and uses high technology in the activity of manufacturing or provision of selected services outside Malaysia.

Application

5. These Rules shall apply to a locally owned company which⎼⎼

(a)

submits an application for deduction for cost of acquisition of foreign owned company on or after 3 July 2012 but not later than 31 December 2016 to the Malaysian Investment Development Authority, and the said application has been approved by the Minister;

(b)

acquires at least fifty one percent of paid-up capital in respect of ordinary shares of a foreign owned company in the form of cash transaction;

(c)

uses the high technology acquired from that foreign company in his business for the purpose of creating or increasing a demand on the product manufactured in Malaysia or services provided in Malaysia, as the case may be and with the objective of using the said technology for⎼⎼

(i)

the production or improvement of material, devices, products, produce or processes; or

(ii)

the improvement of processing or quality of the selected services;

and

(d)

has not been granted any incentives under the Promotion of

Investments Act 1986 [Act 327] except pioneer status or investment tax allowance as a high technology company.

Deduction 6.

(1)

For the purpose of ascertaining the adjusted income from the business of a locally owned company which has paid cost of acquisition of a foreign owned company in the basis period for a year of assessment, a deduction shall be allowed of an amount

11

equal to one-fifth of that cost for that year of assessment and for each of the four following years of assessment.

(2)

The cost of acquisition of a foreign owned company approved by the

Minister is deemed to be made in the basis period for the year of assessment in which the date of the full settlement for the acquisition falls as verified by the Malaysian

Investment Development Authority.

(3)

The acquisition must be completed within three years from the date of application to the Malaysian Investment Development Authority.

(4)

Subject to subrule (5), where the cost of acquisition of foreign owned company is paid by a pioneer company, the pioneer company may make an election that the deduction referred to in subrule (1) be allowed commencing from the year of assessment in the first basis period in respect of its post-pioneer business and the four following years of assessment.

(5)

Where the paid-up capital in respect of ordinary shares of the acquired foreign owned company is disposed of within five years from the date of completion of the acquisition, the deduction referred to in subrule (1) shall be withdrawn and be treated as gross income of the locally owned company in the year of assessment in which those shares are disposed of in the respective years of assessment where such deduction has been allowed.

(6)

In this rule⎼⎼

(a)

“disposed of” means sold, conveyed, transferred or assigned, or alienated with or without consideration; and

(b)

“post-pioneer business” and “pioneer company” has the same meaning as assigned to it in section 2 of the Promotion of

Investments Act 1986.

12

Ineligibility for deduction 7.

(1)

The deduction under these Rules is not eligible for a locally owned company which in the basis period for a year of assessment⎼⎼

(a)

has made a claim for reinvestment allowance under Schedule 7A or investment allowance for service sector under Schedule 7B of the Act;

(c)

has made a claim for a deduction under any Rules made under section 154 of the Act except for allowance under Schedule 3 to the

Act; or

(d)

is a related company of a locally owned company which application for deduction under these Rules has been approved.

(2)

In this rule, “related company” has the same meaning assigned to it in section 2 of the Promotion of Investments Act 1986.

Made 26 June 2013

[Perb.0.3865/325JLD.6;LHDN01/35/(S)/42/51/82-60; PN(PU2)80/LXX]

DATO’ SERI AHMAD HUSNI BIN MOHAMAD HANADZLAH

Second Minister of Finance

[To be laid before the Dewan Rakyat pursuant to subsection 154(2) of the Income Tax Act 1967]