s 36 Abatement of statutory income for exports
(1) Subject to subsection (4), where in the basis period for a year of assessment, a company exports directly or through agents any product manufactured by such company in Malaysia, the adjusted income of the company for that year of assessment shall be abated by an amount ascertained in accordance with subsection (2): 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) or 29A(3) in respect of any promoted activity or promoted product for which the company has been granted approval under section 27; (c) for the period prescribed under paragraph 29 B(2)(b), 29 C (2)(b) or (c), 29 D (2)(b), 29 E (2)(b), 29 F (2)(b) or 29G(2)(b) in respect of an activity or of producing a product for which the company has been granted approval under section 27A, 27B, 27 C, 27 D, 27E or 27 F. (2) The amount of statutory income to be abated under subsection (1) shall be an amount ascertained by applying to the statutory income a rate which is equivalent to twenty-five per cent of export sales as bears to the total sales: Provided that where the basis period of a company for the year of assessment 1994 includes a period prior to 1 January 1993, the amount to be abated shall be the total of— (a) an amount ascertained by applying to the statutory income a rate which is equivalent to fifty per cent of export sales in the period prior to 1 January 1993 as bears to the total sales for the whole of the basis period; and (b) an amount ascertained by applying to the statutory income a rate which is equivalent to twenty-five per cent of export sales in the period after 31 December 1992 as bears to the total sales for the whole of the basis period: Provided further that where the basis period for the year of assessment 1995 of a company includes a period prior to 1 January 1994, the company shall be given an abatement of its statutory income under subsection (1) and the amount to be abated under subsection (2) shall be an amount ascertained by applying to the statutory income a rate which is equivalent to twenty-five per cent of export sales in the period prior to 1 January 1994 as bears to the total sales for the whole of the basis period. (3) (Deleted by Act A656). (4) The Minister with the concurrence in writing of the Minister of Finance may by statutory order in the Gazette— (a) (Deleted by Act A862); (b) declare any product to which this section shall not apply; and (c) add to, delete from, vary and amend any order made under this subsection. (5) For the purposes of this section— “export” includes the sale of locally manufactured products from companies located in areas other than the Free Industrial Zones and licensed manufacturing warehouses and the sale of films and videos outside Malaysia; “export sales” means the free-on-board value of products exported.