Income Tax (Exemption) (No. 6) 2020 (Amendment) Order 2022 – Latest Update on New Food Production Project or an Expansion Project
Income Tax (Deduction for Investment in Approved New Food Production Project) Rules 2022
Income Tax (Exemption) (No. 6) 2020 (Amendment) Order 2022
Latest Update on New Food Production Project or an Expansion Project
This Order is deemed effective from 1 January 2016 except for paragraph 4 relating to the new sub subparagraphs 5A(1)(f) and (g) of the Income Tax (Exemption) (No. 6) Order 2020 [P.U. (A) 373/2020] which are deemed effective from 1 January 2021.
This Order shall apply to a new food production project or an expansion project:
a. Which application is received by the Minister through the Minister charged with the responsibility for that project, on or after 1 January 2016 but not later than 31 December 2020 2022;
b. Which has not commenced on the date the application is made to be received by the Minister; and
The Minister exempts a qualified person resident in Malaysia from the payment of income tax in relation to an expansion project for a period of five (5) consecutive years of assessment (referred to in this Order as the “exempt years of assessment”) in respect of the statutory income from existing projects and expansion projects, commencing from the first year of assessment in which the qualified person derived statutory income in relation to existing projects and the expansion projects, and the first year of assessment shall not be earlier than the year of assessment in the basis period in which the date of approval from the Minister falls.”
By adding two (2) approved food production projects referred to in this Order is a project in relation to:
A new food production project referred to in this Order is the first project carried out by a qualified person for the purpose of undertaking an approved food production project and the new project is approved by the Minister.
An expansion project which is exempted under sub-subparagraph 4(1)(b) is a project carried out by a qualified person for the purpose of expanding its existing approved food production project where the expansion project has not been granted an exemption under this Order.
This Order shall not apply to a qualified person for a year of assessment in the basis period if the qualified person has been granted an exemption under paragraph 127(3)(b) or subsection 127(3A) 123(3A) of the Income Tax Act 1967.
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