s 34 Abatement of adjusted income for compliance with Government policy on capital participation or employment in industry
(1) Where the Minister is satisfied that a company which is resident in Malaysia in the basis year for a year of assessment and is engaged in a manufacturing activity in Malaysia has in the basis period for that year of assessment complied with Government policy on capital participation or employment in industry, it shall be given an abatement of adjusted income in respect of its business relating to such activity for that year of assessment at a rate as may be determined by the Minister of Finance: 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) of section 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 company is first given the abatement. (3) Notwithstanding subsections (1) and (2), the abatement shall not be given for the year of assessment in the basis period in which the company fails to comply, to the satisfaction of the Minister, with Government policy on capital participation or employment in industry. (4) This section shall apply— (a) to a company which has complied with the Government policy on capital participation or employment in industry from the 1 January 1986 to the 31 December 1991; and (b) to a company which has been given an abatement of adjusted income under subsection (1) prior to the 1 January 1992. (5) For the purposes of this section, the Minister with the concurrence in writing of the Minister of Finance shall in a statutory order published in the Gazette specify the rate of abatement.