KAEDAH-KAEDAH CUKAI PENDAPATAN (SKIM INSENTIF BAGI PENGILANG PRODUK FARMASEUTIKAL) 2022

“aktiviti isi dan kemasan” ertinya proses pengisian bebuli dengan vaksin dan menyiapkan proses pembungkusan ubat untuk pengagihan;

“Skim Insentif bagi Pengilang Produk Farmaseutikal” ertinya suatu skim insentif bagi syarikat yang layak yang menjalankan perniagaan berkenaan dengan suatu aktiviti yang layak dan diluluskan oleh Menteri;

“Lembaga Pembangunan Pelaburan Malaysia” ertinya Lembaga Pembangunan

Pelaburan Malaysia yang ditubuhkan di bawah Akta Lembaga Pembangunan Pelaburan

Malaysia (Pemerbadanan) 1965 [Akta 397];

“pengilang produk farmaseutikal” ertinya suatu syarikat—

Bagi maksud subseksyen 6(1A) Akta dan Kaedah-Kaedah ini, suatu aktiviti yang layak ialah suatu aktiviti yang ditetapkan oleh Menteri sebagaimana yang dinyatakan dalam Garis Panduan Insentif bagi Pengilang Produk Farmaseutikal termasuk vaksin di bawah Belanjawan 2021 yang dikeluarkan atau sebagaimana yang disemak oleh

Lembaga Pembangunan Pelaburan Malaysia dan diluluskan oleh Menteri.

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kepada, Akta dan Kaedah-Kaedah ini, cukai pendapatan hendaklah dikenakan bagi tahun taksiran yang ditentukan ke atas pendapatan yang boleh dikenakan cukai bagi suatu syarikat yang layak yang menjalankan perniagaan berkenaan dengan suatu aktiviti yang layak di bawah Skim Insentif bagi Pengilang Produk Farmaseutikal pada kadar—

Kaedah-Kaedah ini ialah tempoh sehingga sepuluh tahun taksiran berturut-turut berkenaan dengan kadar yang disebut dalam perenggan 5(a)

atau sepuluh tahun taksiran berturut-turut berikutnya berkenaan dengan kadar yang disebut dalam perenggan 5(b) bagi pelaksanaan Skim Insentif bagi

Pengilang Produk Farmaseutikal bermula dari tarikh sebagaimana yang ditentukan oleh Menteri.

Produk Farmaseutikal di bawah Kaedah-Kaedah ini hendaklah mematuhi semua syarat yang dinyatakan seperti yang berikut:

JADUAL

Syarat-syarat bagi suatu syarikat yang layak di bawah

Skim Insentif bagi Pengilang Produk Farmaseutikal

Bilangan minimum pekerja sepenuh masa di Malaysia dengan gaji pokok minimum lima ribu ringgit (RM5,000.00) sebulan

15%

daripada jumlah pekerja sepenuh masa

Bilangan minimum pekerja yang mempunyai diploma atau ijazah dalam bidang sains dan teknikal

20% daripada jumlah pekerja

Bilangan minimum pekerja sepenuh masa warganegara Malaysia

80% daripada jumlah pekerja

Amaun minimum perbelanjaan operasi tahunan di Malaysia (dalam ringgit Malaysia)

(hendaklah dipatuhi pada akhir tahun terakhir tahun taksiran yang ditentukan)

Sebagaimana yang dinyatakan dalam surat kelulusan

Bilangan pelatih daripada universiti tempatan, politeknik atau penempatan latihan industri di institusi Pendidikan dan

Latihan Teknikal dan Vokasional (TVET)

Sekurang-kurangnya 6 orang pelatih warganegara Malaysia setiap tahun dengan tempoh minimum latihan selama 3 bulan

Nilai tambah bagi produk

Sekurang-kurangnya 40%

Aktiviti tanggungjawab sosial korporat (CSR) Menjalankan aktiviti

CSR dengan sekurang-kurangnya 1 buah hospital atau institusi kesihatan di Malaysia yang diiktiraf oleh

Kementerian

Kesihatan Malaysia setiap tahun dalam tahun taksiran yang ditentukan

Dibuat 16 Februari 2022

[MOF.TAX(S)700-2/1/204; LHDN.AY.A.600-12/1/7(29)-81; PN(PU2)80/JLD. 105]

TENGKU DATUK SERI UTAMA ZAFRUL BIN TENGKU ABDUL AZIZ

Menteri Kewangan

[Akan dibentangkan di

Dewan

Rakyat menurut subseksyen 154(2)

Akta Cukai Pendapatan 1967]

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INCOME TAX ACT 1967

INCOME TAX (THE INCENTIVE FOR MANUFACTURERS OF

PHARMACEUTICAL PRODUCTS SCHEME) RULES 2022

IN exercise of the powers conferred by paragraph 154(1)(b)

of, and subsection 6(1A) and paragraph 2 of Part XVII of Schedule 1 to, the Income Tax Act 1967 [Act 53], the Minister makes the following rules:

Citation and commencement 1.

(1)

These rules may be cited as the

Income

Tax

(The Incentive for Manufacturers of Pharmaceutical Products Scheme) Rules 2022.

(2)

These Rules have effect from the year of assessment 2021.

Application 2.

(1)

These Rules shall apply to a manufacturer of pharmaceutical products whose application for the Manufacturers of Pharmaceutical Products Incentive Scheme under these Rules has been approved by the Minister under subrule (2)

(hereinafter referred to as the “qualifying company”).

(2)

The application referred to in subrule (1) shall be received by the Minister through the Malaysian Investment Development Authority on or after 1 January 2021

but not later than 31 December 2022.

(3)

The qualifying company referred to in subrule (1) shall comply with all the conditions as specified in the Guidelines for Incentive for Manufacturers of

Pharmaceutical Products including vaccines under the 2021 Budget issued or as revised by the Malaysian Investment Development Authority and approved by the Minister.

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Interpretation 3.

In these Rules—

“fill and finish activity” means the process of filling vials with vaccine and finishing the process of packaging the medicine for distribution;

“The Incentive for Manufacturers of Pharmaceutical Products Scheme” means an incentive scheme for the qualifying company which carries on business in respect of a qualifying activity and approved by the Minister;

“Malaysian Investment Development Authority” means the Malaysian Investment

Development Authority established under the Malaysian Investment Development

Authority (Incorporation) Act 1965 [Act 397];

“manufacturer of pharmaceutical products” means a company—

(a)

incorporated under the Companies Act 2016 [Act 777] and resident in Malaysia;

(b)

possess a manufacturing license under the Industrial Co-ordination

Act 1975 [Act 156] from Ministry of International Trade and Industry or a confirmation letter of exemption from manufacturing license from

Malaysia Investment Development Authority;

(c)

undertakes manufacturing of pharmaceutical products including formulation in Malaysia but excluding fill and finish activity.

Qualifying activity 4.

For the purposes of subsection 6(1A) of the Act and these Rules, a qualifying activity referred to in these Rules is an activity prescribed by the Minister as specified in the Guidelines for Incentive for Manufacturers of Pharmaceutical Products including vaccines under the 2021 Budget issued or as revised by the Malaysian

Investment Development Authority and approved by the Minister.

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Applicable rate 5.

For the purposes of paragraph 6(1)(m) of, and paragraph 2 of Part XVII of

Schedule 1 to, the Act and these Rules, income tax shall be charged for the specified years of assessment on the chargeable income of a qualifying company which carries on business in respect of a qualifying activity under the Incentive for Manufacturers of

Pharmaceutical Products Scheme at the rate of—

(a)

for the first period of ten years of assessment, zero to ten percent; or

(b)

for the next period of ten years of assessment, ten percent.

Specified years of assessment 6.

Specified years of assessment referred to in these Rules is a period up to ten consecutive years of assessment in respect of the rate referred to in paragraph 5(a)

or the next ten consecutive years of assessment in respect of the rate referred to in paragraph 5(b) for the implementation of the Incentive for Manufacturers of

Pharmaceutical Products Scheme commencing from the date as determined by the Minister.

Conditions for Incentive for Manufacturers of Pharmaceutical Products Scheme 7.

A qualifying company approved under the Incentive for Manufacturers of

Pharmaceutical Products Scheme under these Rules shall comply with all the conditions specified as follows:

(a)

the qualifying company shall incur the first qualifying capital expenditure excluding land within one year from the date the approval letter is issued;

(b)

the qualifying company shall incur the full amount of the qualifying capital expenditure as specified in the approval letter within five years from the date the first qualifying expenditure is incurred; and

(c)

any conditions in the Schedule and any other conditions imposed by the Minister as specified in the approval letter and Guidelines for Incentive

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for Manufacturers of Pharmaceutical Products including vaccines under the 2021 Budget issued or as revised by the Malaysian Investment

Development Authority and approved by the Minister.

Surrender of the Incentive for Manufacturers of Pharmaceutical Products Scheme 8.

(1)

The Minister may, at any time, except where the qualifying company fails to comply with any conditions imposed in relation to the Incentive for Manufacturers of Pharmaceutical Products Scheme, accepts the surrender of the Incentive for

Manufacturers of Pharmaceutical Products Scheme by the qualifying company granted under these Rules by a notice in writing from the qualifying company to the Minister through the Malaysian Investment Development Authority.

(2)

The surrender of the Incentive for Manufacturers of Pharmaceutical

Products Scheme shall have effect on the first day in the basis period for the year of assessment in which the application for surrender of the Incentive for Manufacturers of

Pharmaceutical Products Scheme is received by the Minister through the Malaysian

Investment Development Authority.

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Conditions for a qualifying company under the

Incentive for Manufacturers of Pharmaceutical Products Scheme

Minimum number of full time employees in Malaysia with a minimum basic salary of five thousand ringgit (RM5,000.00)

per month

15% of total full time employees

Minimum number of employees having a diploma or degree in the field of science and technical

20% of total employees

Minimum number of Malaysian citizen full time employees

80% of total employees

Minimum amount of annual operating expenditure in Malaysia (in ringgit Malaysia)

(to be complied with at the end of the last year of the specified years of assessment)

As specified in the approval letter

The number of trainee from local university, polytechnics or industrial training placement at Technical and Vocational Education and

Training (TVET) institution

At least 6 Malaysian trainees each year with a minimum training period of 3 months

Value added for product

At least 40%

Corporate social responsibility (CSR) activity Undertake

CSR activity with at least 1 hospital or health institution in Malaysia recognized by Ministry of

Health Malaysia each year within the specified years of assessment

Made 16 February 2022

[MOF.TAX(S)700-2/1/204; LHDN.AY.A.600-12/1/7(29)-81; PN(PU2)80/JLD. 105]

TENGKU DATUK SERI UTAMA ZAFRUL BIN TENGKU ABDUL AZIZ

Minister of Finance

[To be laid before Dewan Rakyat pursuant to subsection 154(2) of the

Income Tax Act 1967]