11. Income Derived by Non-Residents from Filming Activities
Under the Income Tax (Exemption) (No 17) Order 1999, the Minister
exempts non-resident companies, actors and film crews from payment of income tax
in respect of income derived from filming activities in Malaysia commencing on or
after 31st March, 1999. Such filming activities must have been approved by the Jawatankuasa
Filem Asing, Ministry of Home Affairs, Malaysia.The order has effect from year of
assessment 2000 et seq.
12. Qualifying Plant Allowances in respect of Computer
The Income Tax (Qualifying Plant Allowances) (Cost of Provision
of Computer Software) Rules, 1999 provide that from year of assessment 1999, the
initial and annual allowances on qualifying plant expenditure incurred on the cost
of provision of computer software, either the software system or software package
will be calculated at a rate of 20% and 40% respectively.
These Rules equate the rate of annual allowance on computer software,
with that of computers and information technology (IT) equipment under the Income
Tax (Qualifying Plant Allowances) (Computers and IT Equipment) Rules, 1998.
13. Incentive for Malaysian International Trading
Pursuant to the Income Tax (Exemption)(No 16) Order 1999
which took effect from year of assessment 1999, the Ministry exempts a MITC from
the payment of income tax up to an amount equivalent to 70% of the statutory income
of the company for the basis period for a year of assessment arising from an increase
of its export sales, determined in accordance with the following formula:-
||is the statutory income of the company in
relation to its export sales in that basis period;
||is the increase of the export sales of the
company in that basis period over the export sales in the immediately preceding basis
||is the total of the export sales of the company
in that basis period.
"Malaysian International Trading Company" means a company
approved by the Malaysia External Trade Development Corporation which has fulfilled
The exemption is granted for five (5) consecutive years of assessment beginning from
the year of assessment in which MITC first qualified for the exemption.
14. Double Deduction for the Promotion of Export
Pursuant to the Income Tax (Deductions for Promotion of
Export of Services) Rules 1999, a company resident in Malaysia is allowed a double
deduction for outgoings and expenses incurred by that company with respect to its
business primarily and principally for the purpose of promoting the export of services.
The outgoings and expenses for this purpose are:-
- expenses incurred in respect of market research for the purpose
of the export services;
- the cost of tender preparations for the purpose of the export
- the cost of preparing technical information for the export of
- expense by way of fares in respect of travel to a country outside
Malaysia by a representative of the company being a travel necessary for the promotion
of export of services and actual expenses subject to a maximum of RM200 per day for
accommodation and a maximum of RM100 per day for sustenance for the whole of the
period outside Malaysia.
- expenses for the cost of maintaining sales offices overseas for
the purpose of promoting the export of services; and
- actual expenses incurred in respect of publicity and advertisement
in any media outside Malaysia for the promotion of export of services.
The original proposal was announced in the 1996 Budget and the
above Rules have effect for year of assessment 1996 and subsequent years of assessment.
15. Rental Income from the Use of Malaysian Ships
In line with the tax exemption of statutory income derived
from the letting out on charter of a Malaysian ship owned by a Malaysian resident
on a voyage or time charter basis effective year of assessment 1999, as announced
in the 1999 Budget, the Minister has further granted tax exemption on such income
for years of assessment 1984 to 1998 through the Income Tax (Exemption)(No 29) Order
1998 (gazetted on 24th December, 1998).
16. Amendment to Lists of Promoted Activities and
The lists of promoted activities and products which are
eligible for Pioneer Status and Investment Tax Allowance under the Promotion of Investment
Act, 1986 in respect of various industries have been amended via the Promotion of
Investments (Promoted Activities and Promoted Products for High Technology Companies)
(Amendment) Order, 1999 and the Promotion of Investments (Promoted Activities and
Promoted Products) (Amendment) Order, 1999.
Details of the promoted products/activities with effective dates of amendment are
||Products / Activities
||High Technology Companies
||Design or development and production or assembly
9th July 1998
2. Aircraft equipment, components or accessories or parts of aircraft
||Modifications and / or conversion of aircraft
||Refurbishment or remanufacture of aircraft
equipment, components or accessories or parts of aircraft
||Manufacture of pulp, paper and paperboard
||Manufacture of transport equipment, components
||Manufacture and assembly of aircraft
||Manufacture of aircraft equipment, components
accessories of part thereof
||Ground support equipment for the aerospace
||Supporting products / Services
||Specialised medical packaging
||Manufacture of electrical and electronic products
and components and parts thereof
||Re-manufacturing of hard disk drives
19th May, 1993