P.U. (A) | Remarks (Please access the Orders for the full details) |
251/2023 Income Tax (Exemption) (No. 2) Order 2023 (Gazetted on 23 Aug 2023) |
1.The Order is deemed to have effect from the year of assessment (YA) 2019. According to the Order, the Minister exempts a principal hub (PH) from income tax in respect of statutory income derived from core income generating activities (excluding intellectual property income*) for 5 consecutive YAs. The commencement of the exemption period shall be determined by the Minister. *Details can be found in Para 5 of the Order. 2. An application for the exemption shall be made in writing by the PH and received by the Minister through MIDA on or after 1 Jan 2019 but not later than 31 Dec 2020. The exemption shall be subject to the PH complying with the conditions in Sch 2 and Sch 3 of the Order and the approval letter. 3. The statutory income from core income generating activities shall be determined in accordance with the formula in Para 4(5)(a) of the Order in relation to the PH's qualifying services or Para 4(5)(b) of the Order in relation to the PH's qualifying trading activities. 4. A PH is a company:
5. The terms “core income generating activities”, “qualifying trading activities”, “qualifying services”, “related company” and“network company” are defined in Para 2 of the Order. 6. The Order also covers “Tax treatment for PH that suffered losses” - Para 6, “Withdrawal of exemption" - Para 7, “Surrender of exemption" -Para 8. “Separate source and separate account” - Para 9 and “Non-application” - Para 10. |
252/2023 Income Tax (Exemption) (No. 3) Order 2023 (Gazetted on 23 Aug 2023) |
1. The Order is deemed to have effect from YA 2019. According to the Order, the Minister exempts a PH from income tax in respect of statutory income derived from core income generating activities (excluding intellectual property income*) for 5 consecutive YAs. The commencement of the exemption period shall be determined by the Minister. *Details can be found in Para 5 of the Order. 2. The Order is similar to the P.U.(A) 251/2023. Notable exceptions are:
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References:
1. P.U. (A) 251/2023 – Income Tax (Exemption) (No. 2) Order 2023
2. P.U. (A) 252/2023 – Income Tax (Exemption) (No. 3) Order 2023