Worldwide Tax Summaries--MALAYSIA（1999-2000）(part1)（二）
Worldwide Tax Summaries--MALAYSIA（1999-2000）(part1)（二）
责任编辑：北京中立诚会计师事务所 文章来源：北京中立诚会计师事务所 点击数： 更新时间：2006/7/11 20:24:08
4. Venture capital company-Gains derived by an approved venture capital company arising from the disposal of shares in a venture company are exempt from tax. If the venture company is listed on the Kuala Lumpur stock Exchange (KLSE), the tax exemption will apply only to disposals within three years from the date of the first listing on the KLSE. Such exempt gains are available for distribution to shareholders as tax -exempt
dividends. A loss arising from the disposal of shares in a venture company or upon liquidation of a venture company is deductible against other income of the venture capital company, and any unutilized losses are available to be carried forward to subsequent years.
A venture capital company is a Malaysia incorporated company approved by the Minister of Finance that invests at least 70% of its funds in shares of a venture company that is not listed on the KLSE at the time of acquisition. A venture company is a Malaysia company that is involved in high-risk ventures or new technology in relation to a product or activity that promotes or enhances the economic or technological development of
Other incentives/There are a number of other incentives, as follows.
1. Operational headquarters company-An operational headquarters (OHQ) company that provides qualifying services to its offices and related companies outside Malaysia may be granted approved OHQ status.
The income derived by an approved OHQ from the provision of qualifying services is taxed at the reduced rate of 10% for a period of five to ten years. The income after tax may be distributed to shareholders as tax-exempt dividends.
2. International procurement centers (IPCs)-An international procurement center is a company incorporated in Malaysia, whether local or foreign owned, that carries on a business in Malaysia of procurement and sale of raw materials, components and finished products to its group companies in Malaysia or abroad. An approved IPC is exempt from customs duties on goods
brought into free zones or licensed manufacturing warehouses for repackaging or cargo integration before distribution to final consumers.
In addition, other available nontax incentives include:
a. Approval for expatriate posts based on the requirements of the IPC;
b. Ability to maintain more than one foreign currency account for the retention of export proceeds with any licensed commerCIAl bank and without any limit on the balance in the accounts;
c. Permission to enter into foreign exchange forward contracts with a licensed commerCIAl bank to sell forward export proceeds based on projected sales; and
d. Exemption from foreign equity ownership restrictions.
3. International trading companies-Companies that obtain approval as “international trading companies” are exempt for five years on 70% of statutory income arising from increased export dales. To qualify for the incentive the company must:
a. Be incorporated in Malaysia, with 70% of share capital owned by Malaysians;
b. Be registered with the Malaysia External Trade Development Corporation;
c. Achieve annual sales turnover of more than RM25 million, with no more than 20% of sales from commodities trading and no more than 20% consisting of goods from related companies;
d. Market manufactured goods, espeCIAlly from small and medium-scale industries;
e. Use local services (e.g., banking, finance and insurance) in its operations.
4. Incentives for high-technology industries-The government has embarked on the development of a Multimedia Super Corridor (MSC), which is designed to be the research and development center of industries based on information technology (IT). The MSC spans a Greenfield site 15 by 50 kilometers, extending from the Kuala Lumpur City Centre in the north to the Kuala Lumpur International Airport in Seeping to the south. Describing
it as “an island with its own laws, policies and practices to ensure it has the best environment in Asia,” the government has also pledged to provide the MSC with a world-class physical and information infrastructure. Eight speCIAl areas will be promoted, including telemedicine, smart schools, research and development clusters, multipurpose cards, and electronic government.
In order to ensure that MSC companies have the best environment in Asia for harnessing multimedia services, the Multimedia Development Corporation (MDC) was established to develop and manage the MSC. The MDC is a fully empowered “one-stop shop” that acts as approving authority for companies applying for MSC Company status.
Companies, institutions of higher learning and faculties awarded MSC status are eligible for both financial and nonfinanCIAl incentives in three categories, depending on location. They are designated cybercities. outside cybercities but within the MSC, and outside the MSC and designated cybercities . The designated cycbercities are Cyberjaya,
Technology Park, Kuala Lumpur City Centre, and Lembah Silkon (Universiti Putra Malaysia). All categories will qualify for the following fiscal and nonfiscal incentives:
a. Pioneer status for ten years or investment tax allowance for five years of 100% for a new company or an existing company on its additional income;
b. Exemption from indirect taxes on multimedia equipment;
c. Unrestricted employment of local and foreign knowledge workers;
d. Freedom to source funds globally for investments;
e. Protection of intellectual property and cyberlaws;
f. No censorship of the internet;
g. Services of MDC as “one-stop shop.”
Those in the first and second categories will also enjoy a world-class physical and information infrastructure and global competitive telecommunication tariffs. In addition, the first category would be eligible to tender for key MSC infrastructure projects for companies willing to use the MSC as a regional hub.
5. Unit trusts-Gains from the realization of investments are not regarded as taxable income if a unit trust. Interest received by unit trusts from certain bonds and securities, as well as interest credited by banks and other financial institutions licensed under the Banking and FinanCIAl
Institutions Act 1989 or the Islamic Banking Act 1983, are exempt from tax. Distributions from such gains are tax exempt to the unitholders.
Capital allowance in respect of plant and machinery used for the purpose of the letting of properties is allowed at the rate of 10% per annum against the rental income of a property unit trust.
6. Research and development-Companies that provide R&D services to third parties are eligible for pioneer status will full exemption of their profits for a period of five years. As an alternative, such companies may be granted ITA at the rate of 100% of qualifying capital expenditure incurred within a period of the years. The ITA incentive may also be granted to companies undertaking research and development for their group
Companies undertaking in-house R&D projects are eligible for ITA at the rate of 50% of the qualifying capital expenditure incurred within a period of the years.
Double deduction is granted for expenses incurred on approved research and development projects, as well as for payments made to defined R&D companies. Local universities will be recognized as approved research institutes for the purposes of claims for the double-deduction incentive by companies making cash contributions or payments for the use of the services of such universities for research and development activities.
Buildings used for approved R&D activities qualify for the industrial building allowance at the normal rate.
7. Training-There is a double deduction for approved training expenditure incurred in the training of employees under an approved training program.
Manufacturing corporations with 50 or more Malaysian employees registered with the Human Resources Development Fund will not be eligible for this incentive. These corporations are, however, eligible to seek finanCIAl assistance from the Fund for the training of their employees.
Preoperating training expenses are also available as a double deduction to small and medium-scale manufacturing companies that are not registered with the Human Resources Development Fund. The normal deduction for preoperating training expenses may also be available to certain resident companies.
8. Approved service projects-A resident company undertaking a project in the service sector in relation to transport, communications, utilities, or other approved subsectors may elect either an investment allowance or income tax exemption for a period of five years. The mechanisms for tax exemption and investment allowance are similar to those for pioneer status and investment tax allowance respectively.
For projects located in Sabah, Sarawak and the eastern corridor states of Peninsular Malaysia the rate of tax exemption is increased to 85%, and the rate of investment allowance is increased to 80%. Service projects of national and strategic importance will qualify for tax exemption of 100% for a period of ten years or investment allowance of 100%.
As in the case of companies enjoying pioneer status and investment tax allowance, dividends paid out of exempt profits will be exempt in the hands of shareholders.
Buildings used solely for the purposes of approved service projects will qualify for an industrial building allowance.
9. Foreign fund management company-A foreign fund management company providing fund management services to foreign investors will be taxed at a concessionaire rate of 10% in respect of its income derived from the management of foreign funds. Its income after deduction of tax at 10% may be distributed as tax-exempt dividends to its shareholders.
A foreign fund management company is a Malaysian incorporated company licensed under the Securities Industry Act 1984. Its activities are regulated by the Securities Commission.
10. Shipping-Tax-resident corporations and individuals carrying on shipping business are exempt from tax on income derived from the operation of Malaysian ships. Dividend distributions of a company qualifying for this incentive are exempt from tax in the hands of the shareholders.
11. Export incentives-Partial tax exemption is granted at various rates for export-oriented companies, manufacturing companies are eligible for exemption on profits after deduction of tax depreCIAtion allowances on 10% (or 15%) of the value of the increase in the company's exports, provided it attains at least 30% (or 50%) value added. Companies exporting fruits
and cut flowers or engaged in selected services sectors will also enjoy an exemption on profits, after deduction of tax depreCIAtion allowances, equivalent to 10% of the value of the increase in exports.
Labuan-An international offshore financial center/Labuan, which is a federal territory of Malaysia, was established in October 1990 as an international offshore finanCIAl center (IOFC) to provide for the development of offshore activities in the areas of offshore banking and insurance, trust and fund management, offshore investment holding and licensing companies, offshore limited partnerships ,offshore leasing ,offshore money broking ,and other offshore activities carried on by
multinational companies. Certain types of shipping operations are not included in the list of promoted activities. These involve transportation of passengers or cargo by sea and the letting of ships on a voyage or time charter basis.
The following are highlights of what Labuan offers to encourage offshore activities.
1. Income from offshore trading activities is taxed at the rate of 3% of net profits, as reflected in the audited accounts, or, upon election, a fixed sum of RM20000. The scope of offshore activity has been extended to allow an offshore company with non-Malaysian shareholders to invest in Malaysia incorporated companies through portfolio and collective investment schemes.
2. Income from offshore nontrading activities is exempt from tax.
3. Offshore banking or insurance business carried on through a branch of a Malaysian-incorporated bank or insurance company and nonoffshore activities carried on by an offshore company are subject to normal Malaysian income tax and are not eligible for the tax concession.
4. No tax concessions are given to individuals other than an exemption of 50% of the employment income derived by an expatriate from the exercise of an employment in Labuan in a managerial capacity with an offshore company.
This incentive is granted up to the tax year 2000.
5. Offshore companies are not subject to stamp duty in respect of instruments negotiated in connection with their offshore business activities.
6. Trust companies providing legal, accounting, finanCIAl, or secretarial services are eligible for a 65% exemption of income up tot he tax year 2000.
Corporations paying certain types of income are required to withhold tax as fol