s 32 Abatement for location in a promoted industrial area
(1) Subject to subsections (2) to (5), where the income of a company for a basis period for a year of assessment is derived from a business of the manufacture of products and in that basis period the company for the purposes of that business has a factory in operation in a promoted industrial area declared under subsection (4), there shall be given to the company for that year of assessment an abatement of five per cent of the adjusted income in respect of that business: Provided that this subsection shall not apply to a company— (a) for the period during which that company— (i) has been granted pioneer status in respect of any promoted activity or promoted product and which is applying or intends to apply for the grant of a pioneer certificate; or (ii) has been granted a pioneer certificate in respect of any promoted activity or promoted product and whose tax relief period has not ended or ceased; (b) for the period prescribed under paragraph 29(2)(b), (c) or (d), 29C (2)(b) or (c), 29D (2)(b), 29E(2)(b), 29F(2)(b) or 29G(2)(b) of section in respect of any promoted activity or promoted product for which the company has been granted approval under section 27, 27B, 27C, 27D, 27E or 27F. (2) Where the adjusted income of the company for that business for the year of assessment consists of activities other than the operations of the factory in the promoted industrial area, the amount of that adjusted income for a year of assessment to be abated under subsection (1) shall be such portion of the adjusted income of that company from that business for the basis period for a year of assessment as is attributable only to amounts included in the gross income of that company from that business for that period which are derived from the operations of the factory in the promoted industrial area: Provided that in ascertaining that portion of the adjusted income a deduction under Chapter 4 of Part III of the principal Act from the gross income of the company from that source for that period shall be made— (a) only if it is patently attributable to the operations of the factory in the promoted industrial area; or (b) if it is only partly so attributable in an amount which bears the same proportion to that deduction as the amounts included in the gross income of that company from that business for that period which are derived from operations of the factory in the promoted industrial area bear to the gross income of that company from that business for that period. (3) The abatement of adjusted income under subsection (1) shall be given for each year of assessment in the basis period in which the factory is in operation in the promoted industrial area: Provided that the abatement shall be given for a period of not less than five consecutive years of assessment notwithstanding that the declaration of the promoted industrial area is revoked by the Minister. (4) For the purposes of this section, the Minister with the concurrence in writing of the Minister of Finance may from time to time by statutory order in the Gazette— (a) declare for a specified period any area in Malaysia to be a promoted industrial area; (b) add to, delete from, vary or amend any order made under this subsection. (5) This section shall not apply— (a) to a company which is not resident in Malaysia for the basis year for a year of assessment; or (b) to a company where the income of the company is derived from the operation of a factory in a promoted industrial area and such factory has commenced operations on or after the 1 January 1992.