The exemption from income tax on statutory income derived by a person from a business of a Malaysian ship1
has been extended for a further period of three years from year of assessment 2021 to year of assessment 2023 under the Income Tax (Exemption) (No. 7) Order 2022
[P.U.(A) 312/2022] (‘the Exemption Order
The Exemption Order extends the tax exemption granted for years of assessment 2014 to 2020 under the Income Tax (Exemption) Order 2018 [P.U.(A) 38/2018] and Income Tax (Exemption) (No. 2) Order 2018 [P.U.(A) 48/2018] (‘Previous Exemption Orders’
) but imposes additional conditions that have to be fulfilled in order to qualify for exemption under the Exemption Order.
To qualify for tax exemption under the Exemption Order and the Previous Exemption Orders, the person must be a resident in Malaysia who carries on the business of (a) transporting passengers or cargo by sea on a Malaysian ship, or
(b) letting out on charter a Malaysian ship owned by him on a voyage or time charter basis.
The new conditions introduced under the Exemption Order are the requirement for the person to obtain annual certification from the Ministry of Transport Malaysia that: