Income Tax (Relocation of Provision of Services Business Incentive Scheme) Rules 2022

We want to inform you that the Minister has exercised the powers conferred by paragraph 154(1)(b), read together with subsection 6(1A) of, and paragraph 2 of Part XVII of Schedule 1 to, the Income Tax Act 1967 [Act 53] and issued the Income Tax (Relocation of Provision of Services Business Incentive Scheme) Rules 2022 [P.U. (A) 398/2022].

These rules will take effect from the year of assessment 2021. They will apply to qualifying companies that submit a written application for the Relocation of Provision of Services Business Incentive Scheme to the Minister through the Malaysian Investment Development Authority.

The application must be received between November 7, 2020, and December 31, 2022.

Interpretation

In these Rules:-

“Qualifying Company” means a new company or an existing company which fulfils the eligibility condition imposed by the Minister under the Act and these Rules

“Malaysian Investment Development Authority” means the Malaysian Investment Development Authority established under the Malaysian Investment Development Authority (Incorporation) Act 1965 [Act 397];

“Relocation of Provision of Services Business Incentive Scheme” means an incentive scheme for the qualifying company to undertake a qualifying activity and approved by the Minister;

“New Company” means a company

1. which is incorporated under the Companies Act 2016 [Act 777] and resident in Malaysia;

2. which is established to carry on a qualifying activity under these Rules:

3. which does not have an existing entity or related entity in Malaysia prior to the application referred to in rule 2 being made; or

4. which has an existing entity or related entity in Malaysia which has not carried on a qualifying activity in Malaysia prior to the application referred to in rule 2 being made; and

5. which:

6. relocates its facility for the qualifying activity from outside Malaysia into Malaysia;

7. relocates a new qualifying activity into Malaysia which is different from the existing qualifying activity outside Malaysia; or

8. establish a new operation in Malaysia;

“Existing Company” means a company:

1. which is incorporated or registered under the Companies Act 2016 and resident in Malaysia; and

2. which is already operating in Malaysia and carrying on a qualifying activity for a new business segment separated from the operation of the existing qualifying activity;

Qualifying Activity

A qualifying activity referred to under these Rules is any of the following service activities which adopt Industrial Revolution 4.0 and digitalisation technology undertaken by a qualifying company:

1. provision of technology solutions or technology company which develops technology and provides technology solutions based on substantial scientific or engineering challenges;

2. provision of infrastructure and technology for cloud computing;

3. research and development or design and development activities;

4. medical devices testing laboratory and clinical trials; or

5. any service activity or manufacturing-related service activity as determined by the Minister

Applicable Rate

These income tax rates will apply to the chargeable income of a qualifying company that carries on business in respect of a qualifying activity under the Relocation of Provision of Services Business Incentive Scheme for the specified years of assessment [a period of up to ten consecutive years of assessment for the implementation of the Relocation of Provision of Services Business Incentive Scheme commencing from the year of assessment as determined by the Minister].

Conditions for the Relocation of Provision of Services Business Incentive Scheme

• A qualifying company applying for the incentive scheme must comply with conditions set by the Minister as specified in the approval letter and the Guidelines and Procedures for the Application of Special Tax Incentive for Selected Services Activities under the National Economy Recovery Plan (PENJANA).

• The conditions for the scheme may be revised by the Malaysian Investment Development Authority and approved by the Minister.

• The conditions shall include the following:

• Employing at least 80% full-time Malaysian employees on or before the third year from the date of the first invoice in relation to the qualifying activity issued by the qualifying company until the end of the specified years of assessment.

• Incurring an approved adequate amount of annual operating expenditure to carry on the qualifying activity or an approved adequate investment in fixed assets to carry on the qualifying activity.

Non-application

These Rules shall not apply to a qualifying company which, in the specified years of assessment:-

1. has claimed reinvestment allowance under Schedule 7A to the Act or investment allowance for the service sector under Schedule 7B to the Act;

2. has been granted any incentive under the Promotion of Investments Act 1986 [Act 327];

3. has been granted an exemption under paragraph 127(3)(b) or subsection 127(3A) of the Act;

4. has been approved by the Minister an incentive scheme under any rules made under section 154 of the Act; or

5. has claimed deduction under any rules made under section 154 of the Act except:-

6. the rules in relation to an allowance under Schedule 3 to the Act;

7. the Income Tax (Deduction for Audit Expenditure) Rules 2006 [P.U. (A) 129/2006]; or

8. the Income Tax (Deduction for Expenses in relation to Secretarial Fee and Tax Filing Fee) Rules 2020 [P.U. (A) 162/2020].

Reference

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. Income Tax (Relocation of Provision of Services Business Incentive Scheme) Rules 2022

Download INCOME TAX (RELOCATION OF PROVISION OF SERVICES BUSINESS INCENTIVE SCHEME) RULES 2022 • 641KB

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今年的会计师事务所之间的比赛将于2023年2月25日和26日（星期六和星期日）举行。我们欢迎你前来支持!

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