PERINTAH CUKAI PENDAPATAN (PENGECUALIAN) (NO. 7) 2016

Dalam Perintah ini, “Wilayah Ekonomi Pantai Timur” mempunyai erti yang sama yang diberikan kepadanya dalam Akta Majlis Pembangunan Wilayah Ekonomi Pantai

Timur 2008 [Akta 688].

Apa-apa amaun pendapatan berkanun yang tidak dikecualikan di bawah subperenggan 5(1) hendaklah disifatkan sebagai pendapatan menyeluruh atau sebahagian daripada pendapatan menyeluruh orang yang layak itu bagi tahun taksiran itu.

P.U. (A) 160 7

Jadual 7B kepada Akta;

(ii)

telah diberikan apa-apa insentif di bawah Akta Penggalakan

Pelaburan 1986 berkenaan dengan aktiviti khas yang layak yang sama; atau

(iii)

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

JADUAL

(1)

(2)

Aktiviti khas yang layak

1.

Pertanian

2.

Perkhidmatan berkaitan pertanian

3.

Maklumat, komunikasi dan teknologi

4.

Pendidikan dan latihan

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(1)

(2)

Aktiviti khas yang layak

5.

Perkilangan

6.

Minyak, gas dan petrokimia

7.

Perkhidmatan berkaitan perkilangan

8.

Hotel

9.

Pelancongan

10.

Kebudayaan dan warisan

11.

Lain-lain projek yang diluluskan oleh Menteri

Dibuat 8 Jun 2016

[Perb. O.3865/73(SJ.107)(SK.4); LHDN 01/35/(S)/42/51/231-30; PN(PU2)80/LXXXII]

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. 7) 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. 7)

Order 2016.

(2)

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

Interpretation 2.

In this Order, “East Coast Economic Region” has the same meaning assigned to it in the East Coast Economic Region Development Council Act 2008 [Act 688].

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;

(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;

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(2)

Where the qualifying person is a company which has been granted 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 special 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;

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

Promotion of Investments Act 1986 [Act 327].

Special qualifying activity 4.

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

(a)

which has not been carried on in the East Coast Economic Region on the date the application referred to in subparagraph 5(3) is made; or

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(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 5(3) is made, and approved by the Minister.

Exemption

5. (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 the statutory income derived from a special qualifying activity at the rate of not less than seventy per cent and not more than one hundred per cent as may be specified by the Minister.

(3)

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.

(6)

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.

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Statutory income 6.

(1)

Subject to subparagraph (2), the statutory income referred to in subparagraph 5(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 special qualifying activity is also used for the purposes of an activity other than a special qualifying activity, then the allowances which fall to be made under Schedule 3 to the

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

Losses 7.

(1)

Any amount of adjusted loss incurred—

(a)

from the year of assessment in the basis period in which the special qualifying activity referred to in subparagraph 5(1)

commences to the year of assessment immediately prior to the exempt years of assessment; and

(b)

during the exempt years of assessment, shall be carried forward and deducted from the statutory income from the special qualifying activity in the post-exempt year or years of assessment until the whole amount of the adjusted loss has been utilized against the statutory income from the special qualifying activity.

(2)

So much of the adjusted loss referred to in subparagraph (1) which was utilized to reduce the statutory income from the special qualifying activity for a year of assessment shall be disregarded for the purposes of subsections 43(2) and 44(2) of the

Act.

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Amount of statutory income which is not exempted 8.

Any amount of statutory income which is not exempted under subparagraph 5(1) shall be deemed to be the total income or part of the total income of the qualifying person for that year of assessment.

Withdrawal of exemption 9.

(1)

The

Minister may withdraw the exemption granted under subparagraph 5(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 5(1) shall be deemed to have not been granted to the qualifying person from the first year of the period referred to in subparagraph 5(2).

Separate source and separate account 10.

(1)

Where a qualifying person carries on a special qualifying activity and activity other than a special 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 5(1) shall maintain a separate account for the income derived from each activity referred to in subparagraph (1).

Non-application 11.

This Order shall not apply to a qualifying person who—

(a)

commences a special 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—

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(i)

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

(ii)

has been granted any incentive under the Promotion of

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

(iii)

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

(1)

(2)

Special qualifying activity

1.

Agriculture

2.

Agriculture related services

3.

Information, communication and technology

4.

Education and training

5.

Manufacturing

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(1)

(2)

Special qualifying activity

6.

Oil, gas and petrochemical

7.

Manufacturing related service

8.

Hotel

9.

Tourism

10.

Culture and heritage

11.

Other projects approved by the Minister

Made 8 June 2016

[Perb. O.3865/73(SJ.107)(SK.4); LHDN 01/35/(S)/42/51/231-30; PN(PU2)80/LXXXII]

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]