s 33 Abatement of adjusted income for small scale companies
(1) Subject to subsections (2), (3) and (4) where a company which is resident in Malaysia in the basis year for a year of assessment and is a small scale company in the basis period for that year of assessment carries on a business of the manufacture of products in Malaysia which commences on or after the 1 January 1986, the company shall be granted an abatement of five per cent of the adjusted income in respect of that business for that year of assessment: 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) in respect of any promoted activity or promoted product for which the company has been granted approval under section 27. (2) The abatement referred to in subsection (1) shall be given for a period of five consecutive years of assessment commencing from the year of assessment in the basis period in which the business commences. (3) Notwithstanding subsections (1) and (2), the abatement shall cease to be given from the year of assessment in the basis year in which the company is not resident in Malaysia or in the basis period in which the company ceases to be a small-scale company. (4) For the purposes of this section— “small scale company” means a company whose shareholders’ funds as at the first day of the basis period for a year of assessment do not exceed an amount as may be declared, from time to time, by the Minister in a statutory order published in the Gazette. (5) This section shall not apply to a small scale company which commences a business of the manufacture of products in Malaysia on or after the 1 January 1992.