The tax incentive extended by the Malaysian Government for investments in a BioNexus status company under the Income Tax (Deduction for Investment in a BioNexus Status Company) Rules 2016
[P.U.(A) 306/2016] (‘Principal Rules
’) has been extended pursuant to the Income Tax (Deduction for Investment in a BioNexus Status Company) (Amendment) Rules 2022
[P.U.(A) 212/2022] (‘Amendment Rules
The Principal Rules, inter alia
, allow a qualifying person to deduct in a basis period for a year of assessment, an amount equal to the value, as approved by the Minister of Finance, of investment made by such person in a BioNexus status company, for the purpose of ascertaining the adjusted income of the qualifying person from its business. Under the Principal Rules, the incentive applied to qualifying investments made on or after 1 January 2016 but not later than 31 December 2020.
The Amendment Rules, which are deemed to have come into operation on 1 January 2021, have extended the incentive to qualifying investments made from 1 January 2021 to 31 December 2022.
It is to be noted that the conditions set out in the Principal Rules must be satisfied in order to qualify for this tax incentive, including a requirement that the investment by the qualifying person in a BioNexus status company must be approved by the Minister of Finance pursuant to an application submitted on or after 1 January 2021 but not later than 31 December 2022 through the Malaysian Bioeconomy Corporation Sdn Bhd.
Alert by Desmond Liew (Senior Associate) of the Tax Practice and Faith Chan (Associate) of the Corporate Practice of Skrine.
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