s 41B Infrastructure allowance
(1) Where a company which is resident in Malaysia for the basis period for a year of assessment has incurred capital expenditure on infrastructure in respect of a business in operation in a promoted area, there shall be given to the company for that year of assessment an infrastructure allowance of one hundred per cent of that expenditure: Provided that for the purposes of this subsection “capital expenditure” shall not include— (a) (Deleted by Act A993); (b) capital expenditure as defined under subsection 29(7), 29A(8), 29B (7), 29C(7), 29 D(6), 29 E(6), 29 F(6), 29G(6) or 31E(6); (c) qualifying capital expenditure under Schedule 3 of the principal Act; (d) capital expenditure for the purposes of Schedule 7A of the principal Act; (e) capital expenditure incurred on plant or machinery used directly or indirectly for the purposes of storage, treatment or disposal of scheduled wastes as defined in the Environmental Quality (Scheduled Wastes) Regulations 1989 [P.U.(A) 139/1989]; and (f) capital expenditure incurred on buildings used as living accommodation, plant and machinery where such buildings, plant or machinery are provided wholly or partly for the use of a director or an individual who is a member of the management, administrative or clerical staff. (2) Where an allowance is given to a company under subsection (1) for a year of assessment, so much of the statutory income of the business of the company for that year of assessment as is equal to the amount of the allowance (or to the aggregate amount of any such allowance, as the case may be) shall be exempt from tax under the principal Act: Provided that the amount so exempt shall not exceed eighty-five per cent of the statutory income of that business of the company for that year of assessment. (3) Where, by reason of an insufficiency or absence of statutory income of the business of the company for a year of assessment, effect cannot be given or cannot be given in full to any, allowance to which the company is entitled under this section for that year in relation to the source consisting of that business, then, notwithstanding subsections (1) and (2), so much of the allowance in question as cannot be given for that year shall be deemed to be an allowance to be given to the company under this section for the first subsequent year of assessment for which there is statutory income from that business, and so on for subsequent years of assessment until the company has received the whole of the allowance to which it is so entitled. (4) Where a pioneer company has for the purposes of its pioneer business incurred capital expenditure on infrastructure during the tax relief period, the capital expenditure shall be deemed to have been incurred on the day following the end of the tax relief period. (5) Where any income is exempt from tax by virtue of subsection (2), section 23 shall apply to that income (with any necessary modifications) as it applies to income exempt under section 22.