PU Order examinable in D2010 & J2011

F6 : Income Tax (Deduction for Expenses relating to Remuneration of

Employee) Rules 2009 [P.U. (A) 110/2009]

These Rules shall apply to a person who is a resident in Malaysia who employs an
employee on full-time basis between the period of 10 March 2009 until 31
December 2010. In ascertaining the adjusted income of a person who is a resident
in Malaysia from his business in the basis period for a year of assessment, there
shall be allowed to that person a further deduction equal to the amount of
expenses incurred and allowable under Section 33 of the Act in respect of the
remuneration paid to his employee, who:

a) is a citizen and resident in Malaysia;

b) whose employment with a previous employer has been terminated

pursuant to a separation scheme or retrenchment, on or

after 1 July 2008; and

c) whose termination of employment has been registered with the Director

General of Labour, the Ministry of Human Resources.

The amount of the further deduction shall not exceed a maximum amount of ten
thousand ringgit for each month in respect of each employee for a maximum period
of 12 consecutive months commencing from the first month the employee is
employed.

These Rules have effect for the year of assessment 2009 and subsequent years of
assessment.

F6 : Income Tax (Accelerated Capital Allowance) (Plant and Machinery)

Rules 2009 [P.U. (A) 111/2009]

A person who is a resident in Malaysia and, for the purpose of his business, incurs
qualifying plant and expenditure under Schedule 3 of the Act on or after 10 March
2009 but not later than 31 December 2010, qualifies for an initial allowance under
paragraph 10 of Schedule 3 of the Act for the qualifying plant expenditure which
shall be equal to one-fifth of the expenditure and an annual allowance under
paragraph 15 of Schedule 3 of the Act for the qualifying plant expenditure which
shall be equal to two-fifths of the expenditure.

These Rules have effect for the year of assessment 2009 and subsequent years of
assessment.

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PU Order examinable in D2010 & J2011

P6 : Income Tax (Exemption)(No.4) Order 2009 [Section 4(f) income exemption

where payer is Labuan entity

The Minister exempts from tax any gains or profit falling under paragraph 4(f) of the Act received by a
non-resident from an offshore company.

This Order is deemed to have come into operation from 1 January 2009.

P6 : Income Tax (Exemption)(No.6) Order 2009, as amended by corrigendum

(Income from healthcare service to foreign clients

With effect from year of assessment [“YA”] 2010 until YA 2014, the tax exemption on income derived from
provision of healthcare services to foreign clients to be increased from 50% to 100% of the increase in
value of healthcare services provided in the current year as compared with the preceding year and to be
set off against 70% of the statutory income.

F6 : Income Tax (Deduction for expenditure on registration of patent and trade

mark) Rules 2009

Following the 2010 Budget announcement, the Income Tax (Deduction for Expenditure on Registration of
Patent and Trademark) Rules 2009 has been gazetted to allow deduction of expenses incurred on the
registration of patents and trademarks in Malaysia by small medium enterprises [“SME”].
For the purpose of this deduction, SME include:
i. SME as defined under the Income Tax Act 1967;
ii. enterprises in the manufacturing industries, manufacturing related services industries and agro-
based industries with full-time employees not exceeding 150 persons, or with annual sales
turnover not exceeding RM25 million;
iii. enterprises in the services industries, primary agriculture industries and information and
communication technology industries with full time employees not exceeding 50 persons, or with
annual sales turnover not exceeding RM5 million

This order takes effect from YA 2010 until YA 2014.

P6 : Income Tax (Exemption) (No.22) Order 2006 (207/2006)

(Income from government grants)

• This Order takes effect from the YA 2006.

• This Order exempts grants or subsidies received from the Federal Government or State Government
at gross income level.

• Expenses incurred that were financed by the abovementioned grants or subsidies are not eligible for
tax deduction under Section 33(1) of the Act or the PIA.

• Expenditure for the acquisition of plant and machinery financed by the abovementioned grants or
subsidies are not eligible for capital allowances under Schedule 3 of the Act.

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PU Order examinable in D2010 & J2011

• Grants or subsidies are exempted from tax in the basis period they were received or in the basis
period in which the expenses financed by the grants or subsidies were incurred, whichever the
earlier.