On 30 August 2017, Malaysia published the Income Tax (Exemption) (No.8) Order 2017 in the Official Gazette. The order introduced a tax exemption on qualifying capital expenditure in relation to automation equipment used directly in a qualifying project undertaken by a qualifying company resident in Malaysia.
The Order provides income tax exemption for a qualifying company in respect of statutory income derived from a qualifying project which is equivalent to one hundred per cent of the amount of allowance for which the qualifying company is entitled under rules 5 and 6 of the Income Tax.
The exemption applies for the years of assessment 2015 to 2017 for qualifying companies engaged in qualifying projects relating to rubber, plastic, wood, furniture, and textile. For all other qualifying companies engaged in qualifying projects, the exemption applies for the years of assessment 2015 to 2020.
