PERINTAH CUKAI PENDAPATAN (PENGECUALIAN) (NO. 4) 2016

Aktiviti yang layak yang disebut dalam Perintah ini ialah aktiviti yang dinyatakan dalam ruang (3) Jadual berhubung dengan sektor yang dinyatakan dalam ruang (2)—

Jika perbelanjaan modal yang layak dilakukan oleh orang yang layak ke atas bangunan, kilang, jentera atau loji yang digunakan bagi maksud suatu aktiviti yang layak dan bangunan, kilang, jentera atau loji itu dilupuskan pada bila-bila masa dalam tempoh dua tahun dari tarikh perolehan bangunan, kilang, jentera atau loji itu, pengecualian

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yang diberikan berkenaan dengan amaun pendapatan berkanun yang bersamaan dengan amaun elaun bagi perbelanjaan modal yang layak itu hendaklah ditarik balik dalam tempoh asas bagi tahun taksiran yang bangunan, kilang, jentera atau loji itu dilupuskan.

Penentuan perbelanjaan modal yang layak bagi bangunan, kilang, jentera atau loji yang dilupuskan kepada syarikat berkaitan 9.

Jika orang yang layak melupuskan kepada syarikat berkaitannya apa-apa bangunan, kilang, jentera atau loji yang berkenaan dengannya pengecualian dipohon oleh orang yang layak itu di bawah Perintah ini, amaun perbelanjaan modal yang layak yang dilakukan oleh syarikat berkaitan itu hendaklah disifatkan sebagai suatu jumlah yang bersamaan dengan sifar.

Penarikan balik pengecualian

Jadual 7B kepada Akta;

(ii)

telah diberikan apa-apa insentif di bawah Akta Penggalakan

Pelaburan 1986 berkenaan dengan aktiviti yang layak yang sama; atau

(iii)

telah diberikan pengecualian di bawah seksyen 127 Akta berkenaan dengan aktiviti yang layak yang sama.

JADUAL

(1)

(2)

Sektor

(3)

Aktiviti yang layak

(4)

Perbelanjaan modal yang layak

1.

Pertanian

(a)

Pembersihan dan penyediaan tanah

(b)

Penanaman tanaman

(c)

Penyediaan sistem pengairan dan penyaliran

(d)

Penyediaan jentera atau

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(1)

(2)

Sektor

(3)

Aktiviti yang layak

(4)

Perbelanjaan modal yang layak hiasan

(f)

Perikanan pedalaman atau perikanan laut dalam

(e)

Pembinaan jalan masuk termasuk jambatan

(f)

Pembinaan atau pembelian bangunan

(termasuk yang disediakan bagi tujuan kebajikan pekerja atau sebagai tempat tinggal pekerja)

(g)

Penambahbaikan struktur atas tanah atau struktur lain atas tanah, bagi pertanian dan, pembangunan dan penyelidikan berasaskan pertanian 2.

Perkhidmatan berkaitan pertanian

Maklumat, komunikasi dan teknologi

Perkhidmatan dan pembangunan maklumat, komunikasi dan teknologi

Pembinaan atau pembelian suatu bangunan, jentera atau loji

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(1)

(2)

Sektor

(3)

Aktiviti yang layak

(4)

Perbelanjaan modal yang layak

4.

Pendidikan dan latihan

Penubuhan universiti, kolej, institut latihan kemahiran, pusat latihan, pusat perkhidmatan atau institusi pembangunan dan penyelidikan

Pembinaan atau pembelian bangunan, jentera atau loji

5.

Perkilangan

(a)

Pembinaan atau pembelian kilang

(b)

Pembinaan atau pembelian bangunan

(c)

Penyediaan jentera atau loji 6.

Minyak, gas dan petrokimia

Aktiviti terpilih yang berhubungan dengan produk minyak, gas atau petrokimia

Perkhidmatan berkaitan perkilangan

Perkhidmatan berkaitan perkilangan terpilih

Pembinaan atau pembelian bangunan, jentera atau loji

8.

Hotel

Operasi hotel

(a)

Pembinaan atau pembelian suatu bangunan hotel mengikut standard yang diluluskan di Malaysia

(b)

Pengubahan, peluasan dan pengubahsuaian suatu bangunan hotel

(c)

Penyediaan jentera, loji atau kemudahan lain

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(1)

(2)

Sektor

(3)

Aktiviti yang layak

(4)

Perbelanjaan modal yang layak

9.

Pelancongan

(a)

Pembersihan dan penyediaan tanah

(b)

Penanaman pokok dan tumbuh-tumbuhan

(c)

Pembinaan jalan dan kemudahan infrastruktur lain dalam kawasan projek pelancongan

(d)

Mengadakan pameran burung, binatang dan pameran lain

(e)

Penyediaan jentera atau loji

(f)

Pembinaan atau pembelian bangunan

(termasuk yang disediakan bagi tujuan kebajikan pekerja atau sebagai tempat tinggal pekerja)

(g)

Penambahbaikan struktur atas tanah dan struktur lain atas tanah, yang merupakan sebahagian daripada tanah dalam kawasan projek pelancongan 10.

Kebudayaan dan warisan

Pembinaan atau pembelian bangunan, jentera atau loji

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(1)

(2)

Sektor

(3)

Aktiviti yang layak

(4)

Perbelanjaan modal yang layak

(kecuali fotografi)

atau memahat

Dibuat 8 Jun 2016

[Perb. 0.3865/73 (SJ.107) (SK.4); LHDN.01/35/(S)/42/51/82-84; PN(PU2)80/LXXIX]

DATO’ SERI AHMAD HUSNI BIN MOHAMAD HANADZLAH

Menteri Kewangan Kedua

[Akan dibentangkan di

Dewan

Rakyat menurut subseksyen 127(4)

Akta Cukai Pendapatan 1967]

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INCOME TAX ACT 1967

INCOME TAX (EXEMPTION) (NO. 4) ORDER 2016

IN exercise of the powers conferred by paragraph 127(3)(b)

of the

Income Tax Act 1967 [Act 53], the Minister makes the following order:

Citation and commencement 1.

(1)

This order may be cited as the Income Tax (Exemption) (No. 4)

Order 2016.

(2)

This Order is deemed to have come into operation on 13 June 2008.

Interpretation 2.

(1)

In this Order—

“related company” has the same meaning assigned to it in section 2 of the

Promotion of Investments Act 1986 [Act 327];

“East Coast Economic Region” has the same meaning assigned to it in the

East Coast Economic Region Development Council Act 2008 [Act 688].

(2)

Except for subparagraphs 6(1) and (2), paragraphs 46 and 55 of

Schedule 3 to the Act shall apply in relation to any reference to “incurred” in this Order, and the word “incurs” shall be construed accordingly.

Qualifying person 3.

(1)

The qualifying person referred to in this Order is—

(a)

a company incorporated under the Companies Act 1965 [Act 125]

and resident in Malaysia;

(b)

an agro-based co-operative society;

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(c)

a Farmers’ Organization;

(d)

an Area Fishermen’s Association, a National Fishermen’s

Association or a State Fishermen’s Association; or

(e)

an association solely engaged in agriculture and resident in

Malaysia.

(2)

Where the qualifying person is a company which has been granted an exemption under this Order, any related company to the company is not entitled to be granted an exemption under this Order in relation to the same qualifying activity.

(3)

For the purposes of this paragraph—

“agro-based co-operative society” has the same meaning assigned to it in the

Farmers’ Organization Act 1973 [Act 109];

“Area Fishermen’s Association” has the same meaning assigned to it in the

Fishermen’s Associations Act 1971 [Act 44];

“National Fishermen’s Association” has the same meaning assigned to it in the

Fishermen’s Associations Act 1971;

“State Fishermen’s Association” has the same meaning assigned to it in the

Fishermen’s Associations Act 1971;

“Farmers’ Organization” has the same meaning assigned to it in the Farmers’

Organization Act 1973.

Qualifying activity 4.

A qualifying activity referred to in this Order is an activity as set out in column (3) of the Schedule in relation to the sector as set out in column (2)—

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(a)

which has not been carried on in the East Coast Economic Region on the date the application referred to in subparagraph 6(4) is made; or

(b)

which has been carried on in the East Coast Economic Region not more than one year prior to the date the application referred to in subparagraph 6(4) is made, and approved by the Minister.

Qualifying capital expenditure 5.

(1)

Subject to subparagraph (2), a qualifying capital expenditure referred to in this Order is a capital expenditure as set out in column (4) of the Schedule incurred by a qualifying person in relation to a building, factory, machinery or plant used in

Malaysia solely for the purpose of carrying on a qualifying activity.

(2)

Unless otherwise stated in the Schedule, qualifying capital expenditure shall not include capital expenditure incurred on—

(a)

any building which is used as living accommodation for a person; or

(b)

any machinery or plant which is provided wholly or partly for the use of a director or an individual who is a member of the management, administration or clerical staff of that qualifying person.

Exemption 6.

(1)

The Minister exempts a qualifying person in the basis period for a year of assessment from the payment of income tax in respect of statutory income derived from a qualifying activity, which is equivalent to the amount of allowance of one hundred per cent of the qualifying capital expenditure incurred by the qualifying person.

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(2)

The exemption referred to in subparagraph (1) shall be for a period of five consecutive years commencing from the date of the first qualifying capital expenditure incurred by the qualifying person as determined by the

East Coast Economic Region Development Council.

(3)

The commencement date referred to in subparagraph (2) shall not be earlier than three years before the date of the application for exemption is made and shall not be earlier than 13 June 2008.

(4)

An application for exemption under this Order shall be made to the

Minister through the East Coast Economic Region Development Council on or after 13 June 2008 but not later than 31 December 2020.

(5)

An exemption granted under this Order is subject to the qualifying person complying with all the conditions imposed by the Minister in relation to the exemption.

(6)

Nothing in subparagraph (1) shall absolve or be deemed to have absolved the qualifying person from complying with any requirement to submit any return or statement of accounts or to furnish any other information, under the Act.

(7)

For the purposes of this paragraph, the “East Coast Economic Region

Development Council” means the council established under the East Coast Economic

Region Development Council Act 2008.

Statutory Income 7.

(1)

Subject to subparagraph (2), the statutory income referred to in subparagraph 6(1) in the basis period for each year of assessment shall be determined after deducting the allowances which fall to be made under Schedule 3 to the Act notwithstanding that no claim for such allowances has been made.

(2)

Where a building, factory, machinery or plant is used for the purposes of a qualifying activity is also used for the purposes of an activity other than a qualifying activity, then the allowances which fall to be made under Schedule 3 to the Act shall be

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deducted as is reasonable having regard to the extent to which the building, factory, machinery or plant is used for the purposes of the qualifying activity.

(3)

Where an exemption is granted to a qualifying person under subparagraph 6(1) for a year of assessment, an amount equal to the amount of the allowance referred to in subparagraph 6(1) shall be exempted from tax for that year of assessment.

(4)

Where, by reason of the absence or insufficiency of the statutory income, exemption cannot be granted or cannot be granted in full as the qualifying person is entitled under subparagraph 6(1) for that year of assessment, then so much of the statutory income in respect of which exemption cannot be granted for that year of assessment, shall be granted exemption for the first subsequent year of assessment for the basis period for which the qualifying person has statutory income from the qualifying activity, and for subsequent year or years of assessment until the exemption is granted in respect of the whole statutory income as the qualifying person is entitled under subparagraph 6(1).

Disposal of building, factory, machinery or plant within two years 8.

Where a qualifying capital expenditure is incurred by a qualifying person on a building, factory, machinery or plant used for the purposes of a qualifying activity and such building, factory, machinery or plant is disposed of at any time within the period of two years from the date of acquisition of the building, factory, machinery or plant, the exemption granted in respect of the amount of statutory income which is equal to the amount of allowance for such qualifying capital expenditure shall be withdrawn in the basis period for the year of assessment in which the building, factory, machinery or plant is disposed of.

Determination of qualifying capital expenditure for building, factory, machinery or plant disposed to related company 9.

Where the qualifying person disposes to its related company any building, factory, machinery or plant in respect of which an exemption is applied by the

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qualifying person under this Order, the amount of the qualifying capital expenditure incurred by the related company shall be deemed to be a sum equal to zero.

Withdrawal of exemption 10.

(1)

The

Minister may withdraw the exemption granted under subparagraph 6(1) if the qualifying person fails to comply with any condition imposed in relation to the exemption.

(2)

Where the exemption is withdrawn in accordance with subparagraph (1), the exemption granted in respect of any amount of the statutory income under subparagraph 6(1) shall be deemed to have not been granted to the qualifying person from the first year of the period referred to in subparagraph 6(2).

Separate source and separate account 11.

(1)

Where a qualifying person carries on a qualifying activity and activity other than a qualifying activity, each activity shall be treated as a separate and distinct source of the activity.

(2)

The qualifying person who is granted an exemption under subparagraph 6(1) shall maintain a separate account for the income derived from each activity referred to in subparagraph (1).

Non-application 12.

This Order shall not apply to a qualifying person who—

(a)

commences a qualifying activity after one year from the date of the approval by the Minister or after such extended period approved by the

Minister; or

(b)

in the basis period for a year of assessment—

(i)

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

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(ii)

has been granted any incentive under the Promotion of

Investments Act 1986 in respect of the same qualifying activity; or

(iii)

has been granted an exemption under section 127 of the Act in respect of the same qualifying activity.

(1)

(2)

Sector

(3)

Qualifying activity

(4)

Qualifying capital expenditure 1.

Agriculture

(f)

Inland fishing or deep sea fishing

(f)

Construction or purchase of buildings

(including those provided for the welfare of employees or as living accommodation for employees)

Agriculture related services

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(1)

(2)

Sector

(3)

Qualifying activity

(4)

Qualifying capital expenditure produce

Information, communication and technology

Information, communication and technology services and development

Construction or purchase of building, machinery or plant

4.

Education and training

Establishment of universities, colleges, skills training institutes, training centres, service centres or research and development institutions

Construction or purchase of building, machinery or plant 5.

Manufacturing

Oil, gas and petrochemical

Selected activity relating to oil, gas or petrochemical products

Manufacturing related service

Selected manufacturing-related services

Construction or purchase of building, machinery or plant 8.

Hotel

Operation of hotel

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(1)

(2)

Sector

(3)

Qualifying activity

(4)

Qualifying capital expenditure approved standard in

Malaysia

Tourism

(f)

Integrated resort

(i)

Health tourism

(c)

Construction of roads and other infrastructure facilities within the area of tourism project

(e)

Provision of machinery or plant

(f)

Construction or purchase of buildings

(including those provided for the welfare of employees or as living accommodation for employees)

Culture and heritage

Construction or purchase of

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(1)

(2)

Sector

(3)

Qualifying activity

(4)

Qualifying capital expenditure royal tenun

(except photography)

or sculpting building, machinery or plant

Made 8 June 2016

[Perb. 0.3865/73 (SJ.107)(SK.4); LHDN.01/35/(S)/42/51/82-84; PN(PU2)80/LXXIX]

DATO’ SERI AHMAD HUSNI BIN MOHAMAD HANADZLAH

Second Minister of Finance

[To be laid before the Dewan Rakyat pursuant to subsection 127(4) of the Income Tax

Act 1967]