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ALLOWANCE FOR INCREASE EXPORT (AIE), DOUBLE DEDUCTION - Coggle Diagram
ALLOWANCE FOR INCREASE EXPORT (AIE)
service
R in Mas export qualify services to foreign client eligible for exemption on SI
foreign client means
non-Msian citizen & no working permit
NR resident Msian citizen living abroad
co, p/ship, organisation/ cooperative incorporated outside Mas
Qualifying services
Architecture
Building mgt
Accounting
Plantation mgt
Legal services
ICT
tax mechanism
Excess AIE to be c/f indefinitely to similarly set off against 70% SI in subsq YAs until fully utilized
exempted income can credited into tax exempt a/c
amount used to exempt max 70% SI
2 tier exemption applies to corporate SH
AIE equal to 50% increase in export
lower of
50% increase export
70% SI
not apply to person who granted
Investment allowance under Sch 7B
approved service project
ITA, pioneer status
healthcare services
does not apply to person who has been granted
ITA
Pioneer status
double deduction
qualifying expenses
cost preparing tech info
overseas travel fares to promote healthcare services (RM300 for accommodation & a59 sustenance per day)
market research
cost to maintain sales office overseas
participation in trade/industrial exhibition in Mas or overseas approved by MATRADE
participation in exhibition held in Mas Permanent Trade & Exhibition Centres overseas approved by MATRADE
apply to co that provides healthcare services which incur expenditures to promote export of services
Goods
manufacturing/agricultural
Income tax
not exclude sales to Free Industrial Zone & Licensed Manufacturing Warehouse
cannot claim
pioneer status
RA
ITA
conditions to claim
exports manufactured products/agricultural produce in BP for YA
manufacturing co/co engaged in agriculture
at least 60% Msian owned
Resident in Mas
Export of agricultural produce
lower of
10% increase export
70% SI
Achieving 50% value added
Lower of
70% SI
15% increase export
achieving 30% value added
Lower of
10% increase export
70% SI
Exemption of income
penetrated new market
lower of
50% increase export
70% SI
received export excellence award
lower of
100% increase export
70% SI
achieve significant increase in export (at least 50%)
lower of
30% increase export
70% SI
condition
co carrying on manufacturing/agricultural activities
prohibited exports & certain types of extractive product specifically excluded
claimant must be locally incorporated co at least 60% Msian-owned & resident in Mas
sales to Free Industrial Zones, Free Commercial Zones, Licensed Manufacturing Warehouse & Labuan, Langkawi & tioman excluded
cannot claim if co has been granted
RA
deduction of cost acq foreign-owned co
ITA
allowance increased export
pioneer status
no mutual exclusion to other incentives
increase export for MITC
condition
co uses local banking, finance, insurance, ports & airport services
co incorporated in Mas & has at least 60% of issued share capital Mas-owned
not more than 20% annual sales derived from trading commodities
achieved annual sales >RM10 million
product qualifying
exclude sales to free trade/licensed manufacturing warehouse
imported for subsq re-export
locally produced/manufactured for subsq export
tax mechanism
lower of
70% SI
20% increase export (FOB value)
corporate SH distribute 2 tier exempt dividend to SH
amount can be CR into tax exempt a/c
exemption given 5y only fr YA co 1st qualify for exemption
20% of increase export (exclude sale to FTZ & LMW)
excess AIE c/f to similarity set off against max 70% SI in subs TAs until gully utilized
used to exempt max 70% SI
DOUBLE DEDUCTION
Special provision for Pioneer CO
during TRP
during 5y pioneer period, only single deduction made in respect of expenses qualifying
after TRP
additional deductions will be accumulated and are only deducted from GI in post-pioneer period
has choice to claim single/double deduction for promotion of exports
advertising expenses
incurred in Mas on Msian brand named goods
owner of Msian brand named goods
incur advertising expenses in Mas
at least 70% Msian owned
advertising on Msian brand named goods
resident co
goods must be of export quality
at least 20% total sales Msian brand named goods exported