10.6.5 OTHER DEDUCTION [SECTION 33(1)(d)] (10.6.5.9 INCOME TAX (DEDUCTION…
10.6.5 OTHER DEDUCTION [SECTION 33(1)(d)]
10.6.5.1 INCOME TAX (DEDUCTION OF DONATIONS IN KIND TO DISASTER RELIEF FUNDS) RULES 1971
To qualify for a deduction, the donation must be made:
Out of the stock in trade of the business of the person. The deduction allowed limited to the amount of the adjusted income
To the National Disaster Relief Fund or the State Disaster Relief Fund
10.6.5.2 INCOME TAX (DEDUCTION OF INTEREST PAYABLE ON LOAN TO A SMALL BUSINESS) RULES 1981
In order to qualify:
The person claiming the deduction shall produce a certificate from an appropriate authority designated to approve any loan to a small business
The interest so paid must be allowable under sec 33 ITA
10.6.5.3 INCOME TAX (DEDUCTION FOR EMPLOYMENT OF DISABLED PERSONS) RULES 1982
• allowed as a deduction the remuneration of kind allowed under sec 33 of the ITA, payable by the employer to each of his employees who is physically or mentally disabled.
• to qualify the double deduction, the person who claim the deduction should prove to the satisfaction of DGIR
10.6.5.4 INCOME TAX (DEDUCTION OF INSURANCE PREMIUM FOR IMPORTERS) RULES 1982
• there shall be allowed as a deduction any premium of a kind allowable under sec 33 of the ITA
• double deduction applicable which is the expenditure is allowed in addition to the normal deduction under sec 33
10.6.5.5 INCOME TAX (DEDUCTION OF PREMIUM FOR EXPORT CREDIT INSURANCE) RULES 1982
• deduction will be allowed for any premium of a kind allowable under sec 33, payable in respect of export credit insurance insured with a company approved by the Minister of Finance.
• double deduction applicable which is the expenditure is allowed in addition to the normal deduction under sec 33.
10.6.5.6 INCOME TAX (DEDUCTION FOR FREIGHT CHARGES ) RULES 1990
• Encouraging export of rattan & wood-based products overseas.
• Only for persons engaged in manufacture of rattan & wood-based products (eg: sawn timber, veneer)
• Available from YA 1991
• Revoked with effect from YA 2016
10.6.5.7 INCOME TAX (DEDUCTION PARTICIPATION IN AN APPROVED INTERNATIONAL TRADE FAIR)
Enacted to assist Malaysian Companies to go abroad in line with globalization trends.
Effective from YA 1992
Allowed under sec 33 ITA (DOUBLE DEDUCTION)
To qualify DD, deduction must satisfy conditions stipulated in Rules.
10.6.5.8 INCOME TAX (DEDUCTION FOR OVERSEAS EXPENSES FOR PROMOTION OF TOURISM ) RULES 1990
Provide attractive package for Malaysian companies ( hotel & tour operating business )
Company that is resident in Malaysia for the YA is eligible for deduction for that YA which carrying :
a) Hotel business in a hotel registered with the tourist development corporation of Malaysia
b) Tour operating business registered with the tourist development corporation of Malaysia
10.6.5.9 INCOME TAX (DEDUCTION FOR APPROVED TRAINING ) RULES 1992
Employee : employee of company and citizen of Malaysia
Type of training deduction are deductions for :
a) Manufacturing company
b) Non-manufacturing company
c) Company carrying on hotel or tour operating business
d) Training of handicapped persons
10.6.5.10 INCOME TAX (DEDUCTION OF INSURANCE PREMIUM FOR EXPORTERS)
• Allow for the deduction of any premium of the type allowed under sec 33 of the act payable.
• “double deduction” the expenditure is allowed in addition to the normal deduction under sec 33.
• Revoked from YA 2016
10.6.5.13 INCOME TAX (DEDUCTION FOR ADVERTISING EXPENDITURE ON MALAYSIA BRAND NAME GOODS)
• “Qualifying advertising expenditure” : incurred in Malaysia in respect of the cost od advertising Malaysia brand name goods through advertisement.
• A double deduction is given.
• Double deduction conditions:
a. > 50% of the shares in the claimant company must be owned by the registered proprietor of the Malaysia.
b. Can only be claimed by one company in a YA.
10.6.5.14 INCOME TAX (DEDUCTION FOR IMPLEMENTATION OF ROSETTANET) RULES 2002
The deduction of expenditure on the implementation of RosettaNet has been revoked- The Income Tax (Deduction for Implementation of RosettaNet) (Revocation) Rules 2011 came into effect from 1 December 2012.