PERINTAH CUKAI PENDAPATAN (PENGECUALIAN) (NO. 7) 2017

“aktiviti yang layak” ertinya penyewaan bangunan, kemudahan penerimaan dan pengasingan sisa dan kemudahan rawatan air sisa dalam Taman Eko Sisa;

“pemaju”

ertinya suatu syarikat yang diperbadankan di bawah

Apa-apa pelupusan bangunan yang dipegang untuk pelaburan oleh pemaju yang pendapatan daripada penyewaannya telah dikecualikan di bawah Perintah ini hendaklah tertakluk kepada Akta Cukai Keuntungan Harta Tanah 1976 [Akta 169].

Perintah ini tidak terpakai bagi pemaju yang dalam tempoh asas bagi suatu tahun taksiran telah diberikan pengecualian di bawah seksyen 127 Akta berkenaan dengan aktiviti yang layak yang sama.

JADUAL

(1)

No.

(2)

Pihak Berkuasa

(3)

Jenis Sisa

1. Suruhanjaya Perkhidmatan Air Negara

Kumbahan

2. Jabatan Pertanian

Sisa pertanian

3. Jabatan Pengurusan Sisa Pepejal Negara

Sisa pepejal

4. Jabatan Alam Sekitar

Buangan terjadual

5. Lembaga Pelesenan Tenaga Atom

Sisa radioaktif

6. Jabatan Mineral dan Geosains

Perlombongan

Dibuat 23 Mei 2017

[Perb. 0.3865/73(SJ.107); LHDN.01/10.5-1/77-4; PN(PU2)80/LXXXII]

DATUK SERI JOHARI BIN ABDUL GHANI

Menteri Kewangan Kedua

[Akan dibentangkan di Dewan Rakyat menurut subseksyen 127(4) Akta Cukai

Pendapatan 1967]

P.U. (A) 238 7

INCOME TAX ACT 1967

INCOME TAX (EXEMPTION) (NO. 7) ORDER 2017

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 2017.

(2)

This Order shall be deemed to have effect from the year of assessment 2016 until the year of assessment 2025.

Interpretation 2.

In this Order—

“qualifying activity” means the rental of building, waste receipt and separation facility and waste water treatment facility in the Waste Eco Park;

“developer” means a company incorporated under the Companies Act 2016

[Act 777] and resident in Malaysia who—

(a)

developed the Waste Eco Park;

(b)

invested in fixed asset, except land, the minimum value of which is fifty million ringgit within three years from the date of the first capital expenditure made;

“Waste Eco Park” means a place for waste recycling, recovery and treatment activities to be carried out which incorporates the following minimum elements:

(a)

basic infrastructure such as roads, drainage system, utilities and sewerage;

P.U. (A) 238 8

(b)

building and facility for waste receipt and separation;

(c)

waste water treatment facility;

(d)

building for waste recycling, recovery or treatment facility; and

(e)

building for education and awareness centre.

Exemption 3.

(1)

Subject to subparagraph (3), the Minister exempts a developer in the basis period for a year of assessment from the payment of income tax in respect of seventy percent of the statutory income derived from a qualifying activity.

(2)

An application for an exemption under subparagraph (1) shall be made to the Minister through the Malaysian Investment Development Authority on or after 1 January 2016 but not later than 31 December 2020.

(3)

An exemption granted under subparagraph (1) shall be subject to the following conditions:

(a)

the Waste Eco Park has been approved by the relevant authorities specified in the Schedule, State Governments and local authorities before the qualifying activity is executed;

(b)

the developer shall maintain records of all wastes and products flowing in and out of the Waste Eco Park and submit periodic reports of the records to the authorities specified in the Schedule;

(c)

the total waste tonnage received monthly needs to be processed and a maximum of thirty percent from the total processed waste is allowed to be disposed to the landfill;

P.U. (A) 238 9

(d)

only waste obtained within Malaysia, including free zones or licensed manufacturing warehouse, are being recycled, recovered or treated in the Waste Eco Park and the developer is not allowed to import waste into Malaysia; and

(e)

the developer complies with all the written laws, guidelines, conditions and directions in relation to the exemption granted under this Order and in relation to waste management.

(4)

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

(5)

In this paragraph, “Malaysian Investment Development Authority” means the Malaysian Investment Development Authority established under the Malaysian

Investment Development Authority (Incorporation) Act 1965 [Act 397].

Statutory income 4.

(1)

Subject to subparagraph (2), the statutory income referred to in subparagraph 3(1) in the basis period for each exempt 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 an asset used for the purposes of a qualifying activity is also used for the purposes of an activity other than a qualifying activity, then the amount of 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 asset is used for the purposes of a qualifying activity.

(3)

Where, by reason of the absence or insufficiency of the statutory income, exemption cannot be granted or cannot be granted in full as the developer is entitled under subparagraph 3(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,

P.U. (A) 238 10

shall be granted exemption for the first subsequent year of assessment for the basis period for which the developer has statutory income from a qualifying activity, and for subsequent year or years of assessment until the exemption is granted in respect of the whole statutory income as the developer is entitled under subparagraph 3(1).

Withdrawal of exemption 5.

(1)

The

Minister may withdraw the exemption granted under subparagraph 3(1) if the developer 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 under subparagraph 3(1) in respect of any amount of the statutory income shall be deemed to have not been granted to the developer.

Separate source and separate account 6.

(1)

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

(2)

The developer who is granted an exemption under subparagraph 3(1)

shall maintain a separate account for the income derived from qualifying activity.

Disposal of building 7.

Any disposal of a building which is held for investment by the developer for which rental income has been exempted under this Order shall be subject to the

Real Property Gains Tax Act 1976 [Act 169].

Non-application 8.

This Order shall not apply to a developer who in the basis period for a year of assessment has been granted an exemption under section 127 of the Act in respect of the same qualifying activity.

P.U. (A) 238 11

(1)

No.

(2)

Authority

(3)

Type of Waste

1. Suruhanjaya Perkhidmatan Air Negara

Sewage

2. Department of Agriculture

Agricultural waste

3. National Solid Waste Management Department

Solid waste

4. Department of Environment

Scheduled wastes

5. Atomic Energy Licensing Board

Radioactive waste

6. Department of Minerals and Geosciences

Mining

Made 23 May 2017

[Perb. 0.3865/73(SJ.107); LHDN.01/10.5-1/77-4; PN(PU2)80/LXXXII]

DATUK SERI JOHARI BIN ABDUL GHANI

Second Minister of Finance

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

Act 1967]