s 2 Interpretation
(1) In this Act, unless the context otherwise requires— “accounting period” means a period for which accounts have been made in accordance with paragraph 15(1)(c); “agro-based co-operative society” shall have the meaning assigned to it under the Farmers’ Organisation Act 1973 [Act 109]; “approved standard”, in relation to an hotel, means the standard as determined by the defined authority; “Area Farmers’ Association”, “Federal Farmers’ Association” and “State Farmers’ Association” shall have the meanings assigned to them under the *Farmers’ Association Act 1967 [Act 22 of 1967]; “Area Fishermen’s Association”, “Federal Fishermen’s Association” and “State Fishermen’s Association” shall have the meanings assigned to them under the Fishermen’s Association Act 1971 [Act 44]; “contract research and development company” means a company which provides research and development services in Malaysia only to a company other than its related company; “defined authority” means the Minister with the concurrence in writing of the Minister of Finance; “high technology company” means a company engaged in a promoted activity or in the production of a promoted product in areas of new and emerging technologies; “hotel” means any accommodation, which includes a hotel, a motel, chalet or hostel, of the approved standard registered with the Ministry of Culture, Arts and Tourism; “hotel business” means the carrying on of a business in an hotel where such business provides sleeping accommodation and may include providing of food, drinks and other services or facilities and the granting of concessions of any part of such hotel for purposes connected with and incidental to the promotion of tourism; “in-house research” means research and development carried on in Malaysia within a company for the purposes of its own business; “industrial linkage programme” means an integrated programme undertaken by a Ministry or government agency in which a small company or medium company which is a manufacturer and supplier is linked to a larger company or to another small company or medium company through the manufacture and supply of parts and components or through technology or research and development; “integrated agricultural activity” means an activity which comprises the production of agricultural produce and the manufacturing of such produce and includes any activity which is related and incidental to such activity; “Minister”, except where there is a specific reference to the Minister of Finance, means the Minister of International Trade and Industry; “pioneer business” means the business of a pioneer company relating to a promoted activity or promoted product of the company which is carried on by it in its tax relief period; “pioneer certificate” means a pioneer certificate given under section 7 or any such certificate as amended; “pioneer company” means a company certified by a pioneer certificate to be a pioneer company in relation to a promoted activity or promoted product in respect of which the tax relief period has not ended or has not ceased; “pioneer factory” means a factory certified by a pioneer certificate to be a pioneer factory; “post-pioneer business” means the business of a pioneer company deemed under section 15 to have been set up and commenced on the day following the end of its tax relief period; “pre-pioneer business” means the business of a pioneer company relating to the promoted activity or promoted product of the company which is carried on by it before the beginning of the tax relief period; “production day” means the day specified as such in the pioneer certificate in accordance with section 7; “promoted activity” means a manufacturing, agricultural, integrated agricultural, hotel, tourist or other industrial or commercial activity determined by the Minister in accordance with section 4 and includes the activity referred to in section 4A, 4B or subsection 5(1A); “promoted area” means any area determined by the Minister in accordance with section 4C; “promoted product” means any product determined by the Minister in accordance with section 4 and includes the product referred to in sections 4 A, 4B or subsection 5(1A); “related company”, in relation to a company, means a company— (a) the operations of which are or can be controlled, either directly or indirectly, by the first-mentioned company; (b) which controls or can control, either directly or indirectly, the operations of the first-mentioned company; or (c) the operations of which are or can be controlled, either directly or indirectly, by a person who control or can control, either directly or indirectly, the operations of the first-mentioned company: Provided that a company shall be deemed to be a related company of another company if— (aa) at least twenty per cent of its issued share capital is beneficially owned, either directly or indirectly, by that other company; or (bb) at least twenty per cent of its issued share capital of that other company is beneficially owned, either directly or indirectly, by the first mentioned company; “research and development” means any systematic or intensive study carried out in the field of science or technology with the object of using the results of the study for the production or improvement of materials, devices, products, produce or processes, but does not include— (a) quality control or routine testing of materials, devices, products or produce; (b) research in the social sciences or the humanities; (c) routine data collections; (d) efficiency surveys or management studies; and (e) market research or sales promotion; “research and development company” means a company which provides research and development services in Malaysia to its related company or to any other company; “shareholders’ funds” means the aggregate amount of a company’s paid up capital (in respect of preference shares and ordinary shares and not including any amount in respect of bonus shares to the extent they were issued out of capital reserve created by revaluation of fixed assets), reserves (other than any capital reserve which was created by revaluation of fixed assets and provisions for depreciation, renewals or replacements and diminution in value of assets), balance of share premium account (not including any amount credited therein at the instance of issuing bonus shares at premium out of capital reserve created by revaluation of fixed assets), and balance of profit and loss appropriation account; “small company” or “medium company”, unless expressly provided otherwise, means a company— (a) incorporated in Malaysia pursuant to the Companies Act 1965 [Akta 125]; and (b) resident in Malaysia in the basis year for a year of assessment, whose shareholders’ funds as at the date of grant of pioneer status and issue of pioneer certificate do not exceed an amount as may be declared, from time to time, by the Minister in a statutory order published in the Gazette. “tax relief period”, in relation to a pioneer company, means the period ascertained in accordance with section 14 and any extension of that period under section 14A; “technical or vocational training company” means a company which provides technical or vocational training in Malaysia; “tourist project” means a project, other than a hotel business, exclusively carried out for purposes connected with the promotion of tourism and registered with the Ministry of Culture, Arts and Tourism. (2) Notwithstanding subsection (1), in the case of an industry other than a manufacturing industry, this Act shall apply with such modifications as may be necessary; and, in relation to any such industry, without prejudice to the generality of the foregoing— (a) references to construction may be disregarded where they are not appropriate; (b) references to a product may be construed as references to the activity or activities appropriate to the industry in question; (c) references to producing a product may be construed as references to carrying on that activity or those activities (references to producing the relevant promoted product may be construed accordingly); (d) references to production day may be construed as references to the day on which a pioneer company commences to produce its relevant promoted product in marketable quantities or to carry on that activity or those activities on a commercial scale; and (e) references to a factory may be construed as references to the premises at which a promoted activity is carried on or, where such a construction is inappropriate, may be disregarded. (3) Section 136 of the principal Act shall apply to the Director General’s functions under this Act as it applies to his functions under the principal Act. (4) Where this Act provides for any income to be exempt from tax under the principal Act, the income in question shall be disregarded for the purposes of the principal Act. (5) Subject to subsections (1) to (4), where a word or expression used in this Act has its meaning defined (or has a meaning assigned to it) by any provision of the principal Act, either for the purposes of that Act as a whole or for the purposes of any particular provision thereof, then, unless the context otherwise requires, that word or expression shall have in this Act the meaning so defined or assigned. *NOTE—The Farmers’ Association Act [Act 22 of 1967] has since been repealed by the Farmers’ Oganization Act 1973 [Act 109].