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26 Export- Allowance for Increase Export (AIE) - Coggle Diagram
26 Export- Allowance for Increase Export (AIE)
Service
Conditions
Person (ie. ind, Co, LLP)
resident
in Msia
export
qualifying services
ie. accounting, legal services, architecture,
private health care services and education
(must be provided either in Msia or from Msia) etc
to
foreign client
Co, partnership, an org or a cooperative incorporated outside Msia
a non-Msian citizen + no working permit (ind)
NR Msian citizen living abroad (ind)
eligible for exemption on its SI
Tax mechanism
AIE = 50% of the increase in export
this amt used to exempt a
max of 70% of SI
Excess AIE to be
c/f indefinitely
to similarly set off agnst 70% of SI in
subsequent YAs
until fully ultilised
Exempted Y Cr into exempt acc to distribute 2 tier sh dividend
Lower of:
50% if increase export (this yr's export - last yr's export
70% of SI
does X apply to a person who has been granted
ITA & P/S
Separate EO (for Co)
Co R in Msia providing healthcare services in Msia or from Msia to foreign clients
Foreign client:
Non-Msian citizen individuals
coming to Msia to
seek medical treatment
who participate in the
'Msia My Second Home' programme
(including their dependents)
who hold
Msian student pass
(including their dependents)
who hold
Msian work permit
(including their dependents)
Msia citizen individuals who are NR and living
abroad (including their dependents)
Double Deduction
for healthcare services industry
applies to a Co that provide healthcare services which incurs exp to promote export of healthcare services
QE:
market research
cost of preparing technical info
overseas travel fares to promote export of healthcare services
(up to RM300 for accommodation, Rn150 for sustenance per day)
cost to maintain sales office overseas
publicity and advertisement in any media overseas
participation in a trade/industrial exhibition in Msia or overseas approved by MATRADE
participation in exhibitions held in Malaysia Permanent Trade and Exhibition Centres overseas approved by MATRADE
Goods
Co export for manuf or agri produce
based on
value added achieved
separate EO
Agriculture
Lower of
10% x increase export (FOB)
70% of SI
Manufacturing
Achieving 30%-49% of value added
Lower of
10% x increase export (FOB)
70% of SI
Achieving 50% of value added
Lower of
15% x increase export (FOB)
70% of SI
Exports X including sales to FTZ and LMW
Conditions to claim
X claim if Co has been granted P/S, ITA and RA
a manuf Co or a Co engaged in agriculture
R in Msia
= 60% Malaysian owned
exports manufactured products or agri produce in the BP for a YA
Excess AIE can be
c/f
to set off agnst a
max of 70%
of SI in subsequent years until fully ultilised
exports must be at FOB value for purpose of computing AIE
Amt exempted Cr into exempt acc to distribute 2 tier exempt div
based on
significant increase
in exports
penetration of mkt
achieved the
export excellent award
separate EO
significant increase
in exports
at least 50% increase
Lower of
30% x increase export (FOB)
70% of SI
can combine with 'penetration of mkt' and claim at the same time
penetration of mkt
Lower of
50% x increase export (FOB)
70% of SI
can combine with 'significant increase in exports' and claim at the same time
received the
export excellent award
Lower of
100% x increase export (FOB)
70% of SI
stand alone
Amt exempted Cr into exempt acc to distribute 2 tier exempt div
Unultilised amt of AIE can be
c/f
to set off agnst a
max of 70%
of SI in subsequent years until fully ultilised
Conditions to claim
X claim if Co has been granted P/S, ITA, RA, ded for the cost of acq of a foreign-owned Co
Claimant must be
locally incorporated Co, at least 60% Malaysian owned and R in Msia
Co must be carrying manuf or agri activities
Prohibited exports and certain types of extractive product are specifically excluded
Sales to FTZ, LMW, Labuan, Langkawi and Tioman Free Zones are excluded
exports must be at FOB value for purpose of computing AIE
Double Deduction
for
promotion of exports
QE:
market research
cost of preparing technical info
overseas travel fares to promote export of healthcare services
(up to RM300 for accommodation, Rn150 for sustenance per day)
cost to maintain sales office overseas
publicity and advertisement in any media overseas
participation in a trade/industrial exhibition in Msia or overseas approved by MATRADE
participation in exhibitions held in Malaysia Permanent Trade and Exhibition Centres overseas approved by MATRADE
Billboards incurred by Co in
both Msia and overseas
will NOT qualify for DD, only qualify for single deduction
on
advertising exp incurred in Msia on Msian brand named goods
ie. Panasonic (japan) X, Pensonic (Msia) YES
Conditions to claim
R Co
more than/equal 70% Msian owned
owner of a Msian brand named goods
ie. grp Co is the owner also can
incurred advertising exp in Msia
ie. advertise in billboards in Msia
advertising on the Msian brand named goods
goods must be of export quality
more than/equal 20% of the total sales of the Msian brand named goods are exported
Increase export for Msia International Trading Co (MITC)
Tax Mechanism
AIE: 20% of increase export exclude sale to Free Trade Zone (FTZ) & License Manufacturing Warehouse (LMW)
this amt is used to exempt a
max of 70% of SI
Excess AIE to be
c/f
to similarly set off agnst a
max of 70% of SI
in subsequent YAs until fully ultilised
Export must be Free On Board (FOB) value for purpose of computing AIE
Exemption is given for
5 yrs only from the YA the Co 1st qualifies for the exemption
The amt can be Cr into exempt acc to distribute 2 tier exempt div
Lower of
20% of increase export at FOB value
70% of SI
Products qualifying for AIE
locally produced or manufactured
for subsequent export
imported
for subsequent
re-export
Conditions
60%, 10m, 20%, T I B I P
Co
incorporated
in Msia, has
at least 60% of its issued share cap Malaysian owned
achieved
annual sales > RM10 million
not more than 20% of annual sales
are derived from the
trading of commodities
(ie. coffee, timber, crude palm oil)
Co uses
local banking, finance, insurance, ports and airport services
There is
no mutual exclusion to other incentive