Investment Incentive

A152 SEMESTER 2 2015/2016
BKAT 3023 ADVANCED TAXATION

GROUP B
PBL PROJECT
(INVESTMENT INCENTIVES)
TO: DR SALIZA BINTI ABDUL AZIZ
FROM: TIC TAX GROUP
NO
1
2
3
4
5
6
NAME
FATIN SHAHIRAH BINTI FARIDUDIN

SITI NAJWA BINTI MOHD ABD HADI
AQIDAH BINTI ISMAIL
LAILA SYAKIRA BINTI RASID
NUR HAZWANI BINTI MOHAMAD ZWAWI
NUR AIFAA BINTI YEOP SULAIMAN
NO MATRIC
225277
225311
225536
225658
227198
243249
TABLE OF CONTENTS
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5.0
6.0
7.0
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CONTENT
INVESTMENT INCENTIVES
INCENTIVES RELATED TO THE PROJECT
RELEVANT COMPUTATIONS
SUITABLE INCENTIVE THAT SHOULD BE APPLIED
PROCEDURES TO APPLY THE INCENTIVE
PBL DISCUSSION
PEER EVALUATION
RUBRIC
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1.0
INVESTMENT INCENTIVES
Investment incentives are the government schemes aimed at stimulating private sector interest in
specified types of capital expenditure, investment in areas of high unemployment or investment
in specific industries. Investment incentives are available under the Promotion of Investment Act
1986 (PIA 1986) and Income Tax Act 1967. The incentives are often for direct investors as
opposed to portfolio investors, related to real investment in productive activities rather than
investment in financial assets and directed to foreign investors on the grounds that there is
insufficient domestic capital for the desired level of economic development and that international
investment brings modern technology and management techniques. Different incentives will
differently affect company profit or loss.
1.1
Investment Incentive in Malaysia
In Malaysia, there are two types of tax incentives which are direct and indirect, provided in the
Promotion of Investments Act 1986, Income Tax Act 1967, Customs Act 1967, Sales Tax Act
1972, Excise Act 1976 and Free Zones Act 1990. These Acts cover investments in the
manufacturing, agriculture, tourism (including hotel) and approved services sectors as well as
R&D, training and environmental protection activities.
For the direct tax incentives the government provides grants or tax exemptions either
partial of full relief from paying income tax for a specific period. For indirect tax incentives are
in the form of exemptions from import duty, sales tax and excise duty.
For the available investment incentives provided by the Malaysian Government under
direct incentives which is PIA 1986 are pioneer status, investment tax allowance, infrastructure
allowance, tourism incentive and double deduction. Pioneer status is tax incentive which
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provides through partial exemption from payment of Income Tax. Income tax exemption of 70%
- 100% of statutory income for 5 years. It can be extended to another 5 years if the companies is
for treatment of water or project that are of national. Unabsorbed capital allowances and
accumulated losses incurred during the pioneer period can be carried forward and deducted from
the post pioneer status of the company.
The investment tax allowance is an alternative incentive that companies can choose for
other than the Pioneer Status. ITA is designed to cater for projects which have large capital
investments with long gestation period. An allowance of 60% on qualifying capital expenditure
(factory, plant, machinery or other equipment used for the approved project) incurred within 5
years from the date the first qualifying capital expenditure is incurred. The allowance is restricted
to 70% of Statutory Income (SI) in each year of assessment. The unabsorbed allowance can be
carry forward to subsequent years until it is fully absorbed.
The infrastructure allowance, which is governed by Section 41B of the PIA 1986, is an
incentive granted to companies which incurred qualifying capital expenditure on infrastructure in
respect of business or businesses in operation in promoted areas Section 41A PIA 1986 defines
infrastructure as construction, reconstruction, extension or improvement of any permanent
structure including a bridge, jetty, port or road. It is available to any company resided in
Malaysia engaged in manufacturing, agriculture, hotel, tourist or other industrial/commercial
activity in Sabah, Sarawak and the designated Eastern Corridor of Peninsular Malaysia. There
are some capital expenditure that do not qualify for infrastructure allowance which are
expenditure qualify for investment tax allowance or industrial adjustment allowance, expenditure
qualify for capital allowance and reinvestment, expenditure incurred plant and machinery used
for storage, treatment or scheduled waste purposes and lastly is expenditure incurred on
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buildings used as staff living accommodation and plant and machinery provided for
management, administration and clerical employees.
The rate of allowance is 100% of
qualifying capital expenditure on infrastructure and deducted against statutory income.

Tourism incentive is tourism projects, including eco-tourism and agro-tourism projects,
are eligible for tax incentives. These, included hotel business and tourism related activities are
promoted activities under the Promotion of Investments Act, 1986 and are eligible for Pioneer
Status or Investment Tax Allowance as in the following of establishment of medium and low cost
hotels, Enhanced Incentives for Undertaking New Investment in Hotel, Incentives for
Reinvestments in Hotels and Incentive for Reinvestment in Tourism Projects.
Double deduction means revenue expenditure which is given twice the amount as
deduction to determine adjusted income. It is a type of tax incentive to promote the use of
promoted activities such as research, training facilities and local facilities. This type of deduction
is normally gazetted, legislated in ITA 1976 or Promotional Investment Act 1986. All resident
companies engaged in promotions exports outside Malaysia will qualify for the deduction.
Tax incentives under ITA 1967 are reinvestment allowance, double deduction, promotion
of export, allowance for increased export and green building.
Reinvestment allowance is
available for manufacturing companies that are participating in industrial adjustment program
and companies participating in agriculture project activity or promoted product. This allowance
is a special tax incentive granted to Malaysia resident company which operate for not less than
36 months and incurred capital expenditure on a factory, plant and machinery used in Malaysia
for the purpose of a qualifying project and which incurred to an agricultural in Malaysia. It is
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given to a qualifying person or company at the equivalent to 60% of that expenditure and
restricted to 70% of statutory income.
Promotion of export is to make provision for promoting by way of relief from income tax
the establishment and development in Malaysia of industrial, agricultural and other commercial
enterprises, for the promotions of exports and for incidental and related purposes. There are some
of examples of promotion of export which are publicity and advertisement means that the cost of
advertisement in any media outside Malaysia. Examples of media are television, web site, radio,
newspapers, trade or general magazines, trade directories and guidebooks. The expenses
involved here are expenses directly related to carrying out export market research or obtaining
export market information. Examples of such expenses is cost of acquiring samples overseas to
be brought back to Malaysia for study and modification in order to develop products for export.
For the allowance for Increased Exports of Manufactured Products or Agricultural
Produce, manufacturing company or a company in the agriculture sector, resident in Malaysia,
which exports manufactured products or agricultural produce is eligible to claim an Allowance
for Increased Exports pursuant to the Income Tax. The allowance is determined based on
manufactured products and agricultural products. Under manufactured products 10% of the value
of increased exports of manufactured product by the company where the products exported
attained at least 30% of value added. Value added is the sale price of goods at factory price less
the total cost of raw material. For the agricultural products is 10% of the value increased exports
of agricultural produce by the company. There also have income tax exemption on export which
manufacturing and agriculture company that export will be qualify for exemption based on
increased export but the rate of exemption will depends on several criteria which the increase in
exports value of at least 50%, exemption is 30%. Company that incorporated in Malaysia with at
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least 60% of its issued share capital is owned by Malaysia and the amount of exemption against
70% of statutory income and credited to an exempt income account.
Lastly is green building which the Government has launched the green building index
(GBI) on 21 May 2009. GBI is a green rating index on environment-friendly buildings. The
index is based on certain criteria amongst which are energy and water efficiency; indoor
environmental quality, sustainable management and planning of building sites in respect of
pollution control and facilities for workers and usage of recyclable, environment friendly
materials and resources and adoption of new technology. Owners of buildings will be awarded
the GBI certificate are eligible for tax exemption equivalent to 100% of the additional capital
expenditure incurred to obtain the GBI certificate. The exemption is allowed to set-off against
100% of the statutory income for each year of assessment. The incentive is applicable for new
buildings and upgrading of existing buildings. The incentive is given only for the first GBI
certificate issued in respect of the building.
1.2
Manufacturing Sector
The Malaysian Investment Development Authority (MIDA) was incorporated in 1967 to promote
the growth of manufacturing sector in Malaysia. Manufacturing sector is one of the important
sector in promoting the Malaysia economy and expected to spearhead to drive to fulfil the
industrialization objective. Manufacturing is defined as the making, altering, blending,
ornamenting, finishing or otherwise treating or adapting any article or substance with a view to
its use, sale, transport, delivery, or disposal and includes, the assembly of parts and ship repairing
but shall not include any activity normally associated with retail or wholesale. Two major tax
incentives for companies investing in manufacturing sector are pioneer status and investment tax
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allowance. These two tax incentives are mutually exclusive. Investor need to analyse which
incentive should be applied because it will affect the tax liability. If a company granted for
pioneer status, it is no longer entitled to apply for investment tax allowance.
These incentives cover investments in the manufacturing, agriculture, tourism (including
hotel) and approved services sectors as well as R&D, training and environmental protection
activities. There are some policy for manufacturing sector which are local company incorporated,
manufacturing license application, no restriction on foreign equity ownership and free movement
of funds for foreign investments in Malaysia.
These are the list of promoted activites and product :
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Promoted areas are located at Sabah, Sarawak, the Federal Territory of Labuan and Eastern
Corridor of Peninsular Malaysia which is Kelantan, Terengganu and Pahang.
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2.0
INCENTIVES RELATED TO THE PROJECT

Since CAS Sdn Bhd is a manufacturing company that produces promoted products, it is
eligible for Pioneer Status and Investment Tax Allowance incentives. A company that is granted
Pioneer Status may enjoy a five-year partial exemption of from paying income tax. The
exemption is valid for 70% of statutory income of a company with the exemption period
commencing from its first production day. This means that CAS Sdn Bhd will be taxed for only
30% of its statutory income starting from 1 January 2013 to 31 December 2017.
In order to compute the incentive amount, any adjusted loss from a non-pioneer business
or loss from pioneer business will reduce the statutory income credited to exempt account.
However, any unabsorbed pioneer or non-pioneer loss and donation made during the year will
not reduce the amount of the statutory income.
On the other hand, CAS Sdn Bhd is also granted Investment Tax Allowance (ITA) which
is an alternative that companies can opt for other than Pioneer Status. ITA is a more suitable
choice for projects with large capital investments and have long gestation period. Unlike Pioneer
Status where incentive is given on statutory income, the ITA is given based on certain
percentages of the qualifying capital expenditure. A company granted ITA is entitled to an
allowance of 60% on its qualifying capital expenditure (factory, plant, machinery or other
equipment used for the approved project) incurred within five years from the date the first
qualifying capital expenditure is incurred. The company can offset this allowance against 70% of
its statutory income for each year of assessment. The balance of that statutory income will be
taxed at the prevailing company tax rate. Any unutilized allowance can be carried forward to
subsequent years until the whole amount is fully utilized.
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3.0
RELEVANT COMPUTATIONS
PIONEER STATUS
2013
2014
2015
(RM)
(RM)
(RM)
Statutory income/loss
NIL
70,000
80,000
70% of SI
NIL
49,000
56,000
Deemed total income
NIL
21,000
24,000
Statutory income/loss
40,000
NIL
50,000
Add: Interest
24,000
36,000
30,000
Aggregate income
64,000
36,000
80,000
NIL
*(31,000)
NIL
64,000
5,000
80,000
NIL
21,000
24,000
Chargeable income
64,000
26,000
104,000
Tax liability (25%)
16,000
6,500
26,000
Pioneer business
Non-pioneer business
Less: current year business

Total income
Add: deemed total income from pioneer
business
80,000 (total loss) - 49,000 (deducted against exempt account) = 31,000 (deducted
against non-pioneer business)
Exempt account
70% of SI
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2013
2014
2015
NIL
49,000
56,000
Less: non pioneer loss
NIL
(49,000)
NIL
Pioneer loss b/f
NIL
NIL
(50,000)
Amount credit to exempt account
NIL
NIL
6,000
INVESTMENT TAX ALLLOWANCE

2013
2014
2015
NIL
70,000
80,000
30,000
32,000
NIL
ITA b/f
30,000
13,000
ITA utilized (max 70% SI)
(49,000)
(56,000)
30,000
13,000
(24,000)
NIL
21,000
24,000
(50,000)
(29,000)
Chargeable income
NIL
NIL
NIL
Tax liability 25%
NIL
NIL
NIL
Adjusted loss of
50,000
29,000
5,000
Statutory income
Less ITA:
ITA current
ITA of
Taxable SI (30%)
Less: unabsorbed adjusted loss b/f
4.0
SUITABLE INCENTIVE THAT SHOULD BE APPLIED
Since the incentives are mutually exclusive, CAS Sdn Bhd will have to compare between the two
incentives to choose one that will give them the best tax savings.
ITA or PS
ITA (RM)
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PS (RM)
EXEMPT ACCOUNT
TAX PAYABLE
62,000
NIL
6,000
48,500
Based on the comparison, the suitable incentive that we would advise CAS Sdn Bhd to apply for
is Investment Tax Allowance. The reason for this decision is because the ITA has a higher
exempted income account and lower tax payable compared to PS. The exempt account amount is
RM62,000 with no tax payable incurred compared to PS which has a lower exempt account
amount at RM6,000 and it has to pay a tax liability of RM48,500. This choice will give CAS Sdn
Bhd a higher amount of tax savings.
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5.0
PROCEDURE TO APPLY THE INCENTIVE
There are a few procedures that CAS Sdn Bhd needs to follow when they want to apply for
Investment Tax Allowance (ITA) incentive. A company need to apply for Effective Date and
Verification of Compliance for Investment Tax Allowance (ITA) incentive. There are 2 stages
which company is required to submit the application which is ITA I Determination of Effective
Date (ITA I form) and ITA II Verifications of Compliance (ITA II form). Forms can be
retrieved from MIDA website at www.mida.gov.my.
A company is given 2 years from the date of approval letter to submit application for ITA
I that is the Determination of Effective Date by providing the first qualifying capital expenditure
invoice. A company also need to submit ITA II application for the Verification of Compliance
before they claim to IRB and definitely before the 5 year incentives period expires.
A company is required to provide the companys seal and verification as a tool to ensure
the application is genuine and to avoid any misused information. The process of ITA application
will take 14 working days starting from the date complete information received by MIDA.
5.1
Guidelines to Apply for the Determination on the Effective Date of the Investment
Tax Allowance Incentives (ITA I)
Conditions and Procedures for Application

1. Eligible Company:
A company that has been approved for Investment Tax Allowance by the Malaysian
Investment Development Authority (MIDA).
2. How To Apply:
All applications should be made using the following forms:
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Form PIA, 86 (ITA)-(I).

Form PIA, 86 (ITA/R&D) 95(III) - R&D Project.
Required Supporting Documents are as follows:
Form 24 : Latest Return of Allotment of Shares certified by a Company Secretary;

Form 49 : Latest Return Giving Particulars in Register of Directors, Managers and
Secretaries and Change Of Particulars certified by a Company Secretary;

Latest Annual Return certified by a Company Secretary;
Information on Qualified Capital Expenditure; and
A copy of invoice on capital expenditure incurred and to be certified by an External
Auditor.
3. Application forms are available at:Malaysian Investment Development Authority (MIDA)

MIDA Sentral
No. 5, Jalan Stesen Sentral 5
Kuala Lumpur Sentral
50470 Kuala Lumpur
Tel : 603 -2267 3633
Fax : 603- 2274 7970
MIDA Website: http: www.mida.gov.my
MIDA State Offices.

Ministry of International Trade and Industry
Industry Services Division
3rd Floor, Block 10
Government Offices Complex
Jalan Duta
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50622 Kuala Lumpur

Tel : 603-6203 4801
Fax : 603-6201 0437
MITI Website: http:www.miti.gov.my
4. All applications must be submitted to:
Chief Executive Officer Malaysian Investment Development Authority (MIDA)
Licensing & Incentive Compliance and Monitoring Division
29th Floor, MIDA Sentral
No. 5, JalanStesenSentral 5
50470 Kuala Lumpur
P.O. Box 10618
50720 KUALA LUMPUR MALAYSIA
Tel : 603-2267 3633
Faks : 603-2274 8471
5.2
Procedure for Determination of Effective Date of Investment Tax Allowance

Incentive Including R&D Companies and Contract R&D (Form I)
1.
The approval for the Investment Tax Allowance incentive is effective from the date of
companys first qualifying capital expenditure incurred. Companies which have been approved
with the Investment Tax Allowance under the Promotion of Investments Act, 1986 but the
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effective date of ITA have not been determined are required to apply for determination of the
effective date of its incentive.
2.
Applications must be made by completing the Form l by attaching a copy of the
following documents:
a) Invoice of the first capital expenditure incurred and to be certified by the External
Auditor.
b) Manufacturing Licence under the Industrial Co-ordination Act, 1975 (ICA, 1975) for the
approval/approved activities with the Investment Tax Allowance incentive and the
conditions of the licence.
c) A copy of the Investment Tax Allowance approval from MIDA and its conditions.
For b) and c), the company need to attach a copy of the latest approvals of changes to the
conditions of the licence or incentive if applicable.
3.
A copy of the completed form should be submitted to:-
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Chief Executive Officer

Malaysian Investment Development Authority (MIDA)
50470 Kuala Lumpur
P.O. Box 10618
50720 KUALA LUMPUR
Malaysia
5.3
Guidelines to Apply For Compliance of Investment Tax Allowance Conditions (ITA

II)
The Approval Letter for Compliance of Investment Tax Allowance Conditions must be submitted
to the Inland Revenue Board (IRB) in order to enjoy the tax exemption as stated in the
Promotion of Investments Act, 1986 and Income Tax Act, 1967.
Conditions and Procedures for Application
1. Eligible Company:
i.
A company that has been approved for Investment Tax Allowance (ITA) by the
ii.
Malaysian Investment Development Authority (MIDA); and

A company that has been approved for an effective date of ITA either by MITI or MIDA.
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2. How to Apply:
i.
ii.
All applications should be made using the following forms :

Form PIA, 86 (ITA)-95(II).
Form PIA, 86 (ITA/R&D) 95(IV) - R&D Project.
Required supporting documents are:

Form 24 : Latest Return of Allotment of Shares certified by a Company Secretary;
Form 49 : Latest Return Giving Particulars in Register of Directors, Managers and
Secretaries and Change Of Particulars certified by a Company Secretary;

Latest Annual Return certified by a Company Secretary; and
Other supporting documents to fulfill the requirements imposed in the MIDA Approval
Letter. The information must be certified by an External Auditor.
1.
Application forms are available at:

MIDA Sentral
Kuala Lumpur Sentral 5
0470 Kuala Lumpur
Tel : 603 -2267 3633
Fax : 603- 2274 7970
MIDA Website: http: www.mida.gov.my
MIDA State Offices.
Ministry of International Trade and Industry

Industry Services Division
3rd Floor, Block 10 Government Offices Complex
Jalan Duta
50622 Kuala Lumpur
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Tel : 603-6203 4801

Fax : 603-6201 0437
MITI Website: http:www.miti.gov.my
MITI State Offices.
2.
5.4
All applications must be submitted to :

Chief Executive Officer Malaysian Investment Development Authority (MIDA)
50470 Kuala Lumpur
P.O. Box 10618 50720
KUALA LUMPUR
MALAYSIA
Tel : 603-2267 3633 Fax : 603-2274 8471
Procedure for Confirmation of Compliance with Conditions Investment Tax

Allowance Incentive Including of R&D and R&D Contract (Form II)
1.
Companies which have been granted the effective date of the Investment Tax Allowance
(ITA) are required to fill up Form II when companies are already in commercial production and
to claim its ITA.
2.
Each document submitted for the purpose of ITA claim should be certified by a qualified
External Auditor.
3.
Companies are required to submit and attach the latest information. Companies are also
required to notify MIDA on any changes to the Manufacturing Licence conditions and incentive
with relevant documents in this application.
4.
A copy of the completed form should be submitted to:-
Chief Executive Officer

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No. 5, JalanStesenSentral 5
50470 Kuala Lumpur
P.O. Box 10618
50720 Kuala Lumpur, Malaysia.
5. Companies are required to submit Form II to MIDA for a confirmation on the compliance of
the Manufacturing Licence and incentives conditions. MIDA will issue a confirmation letter on
compliance of the conditions to be used for ITA claim to the Inland Revenue Board for first
claim.
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PBL Discussion 1
06th April 2016
DATE
12.30 pm
TIME
SPK 308, TISSA Building
VENUE
Group Assignment PBL1 First Discussion
Type of meeting
Fatin Shahirah, Siti Najwa, Nur Hazwani, Laila Syakirah, Aqidah, Nur
Aifa
Attendees
Agenda topics
Discussion
We discussed about the task that we need to do in this PBL and assign the
task for everyone.
We had also discussed how to do it and when need to submit it since we need to finalize it
before we submit it on 24th April 2016.
Conclusions
We had get our own task and we can start prepare it before next meeting
Action items
- Understand this PBL.
Submission of first draft on 15th April 2016
Special notes
Prepared by;
----------------------------------------Siti Najwa Binti Mohd Abd Hadi
PBL Discussion 2
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17th April 2016
DATE
12.30 pm
TIME
VENUE
Group Assignment PBL1 Second Discussion
Type of meeting
Aifa
Attendees
Agenda topics
Discussion
We discussed about the task that we had done and solve the problem that
arise when doing it.
Everyone give the opinion and try to solve it together since it is a teamwork task.
Conclusions
We had got the idea and information about the problem arise which is on the
calculation part especially about pioneer status.
Action items
- Solve the calculation part problem.
Submission of second draft on 19th April 2016
Special notes
Prepared by;
----------------------------------------Fatin Shahirah Binti Faridudin
PBL Discussion 3
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20th April 2016
DATE
12.30 pm
TIME
VENUE
Group Assignment PBL1 Third Discussion
Type of meeting
Aifa
Attendees
Agenda topics
Discussion
We discussed overall part that we had done to make sure that everyone had
same understanding.
We also check again this assignment to make sure that there is no part that we missed and doing
preparation for the presentation.
Conclusions
We successfully completed our PBL task on the time
Action items
- Prepare for the presentation.
Submission of first draft on 15th April 2016
Special notes
Prepared by;
----------------------------------------Nur Hazwani Binti Mohamad Zwawi
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STUDENT LEARNING
BKAT 3023 Group: A
G (Please circle)
Project Group: TIC TAX

PROJECT: Task PBL (meeting 1)
Date: 2 APRIL 2016
Our most important concerns/problems/questions are:

1
What is investment ?
What is investment incentive?
What investment incentives that available to the Malaysian Government.
What investment incentives that suitable to the project company.
How many exemption the company get?
Procedure to apply based on the investment incentives.
We learned:
1
The definition of investment incentives.
Pioneer Status- 70% of the statutory income is exempted
Investment Tax Allowance-granted 60% allowance from QCE
Understanding the requirement of the task.
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Understanding each role in project.
STUDENT PRODUCT BRIEF

BKAT 3023 Group: A
G (Please circle)

PROJECT: Task PBL
Date: 30 MARCH 2016
What do we want to produce?

We need to prepared all the documentation that explain well about investment
incentive matter.
What research/information do we need to conduct/gather?

We need to know what is investment incentives and understanding the question and
requirement that include in the project.
We expect to learn the following from working on this product:

-
Get knowledge about investment incentives matter
Get to know how to calculate the incentive
We will do the following to complete the task:
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Search in any medium of resources to find an information
Refer to the book or other relevant resource to find the information
Get higher understanding for the task given
Discuss and explain in a team if any problem hard to solve
We will complete the task by:

24th April 2016
Student Presentation Brief

BKAT 3023 Group: A
(Please circle)

PROJECT: Task PBL
Date: 30 MARCH 2016
What will the audience learn from our presentation?

Audience will learn everything about the investment incentive especially how to calculate
the ITA and PS. Beside they will know how much incentive available in Malaysia.
Audience also will learn about the procedure to apply all the investment.
What are the responsibilities of each member?

All each member need to the task and help each other to complete this task. Besides each
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member need to know the role of each other to help other member.
Our plan to make a successful presentation
Our plan to make a successful presentation is all each member need to know what exactly
happened in this task like know how to calculate the ITA and PS. Besides we help each
other by asking member if we dont know about that.
We expect to learn the following from making this presentation:

We expect that we can perform well in presentation because we already discuss among
members to solve this task. We also expect that we can share something that useful with
the audience.
Specific skills we plan to work on are:

The specific skills that we plan to work on are the skills of communication and leadership
since it is important when want to deliver the information in order to make sure that the
others people understand what we are trying to present and for leadership, it is important
to make sure that our task are complete at on time and to make sure that we are on the
right path.
We need the following technology/equipment for our presentation:

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We need to use the computer which has Microsoft Power Point to make it easy for the
audience to understand and a projector to display what we have prepared.
We need the following visual for our presentation:
We need to prepare a slide show for our presentation so that every member in class can
see what we want to present.
PEER EVALUATION FORM

BKAT3023 GROUP: A
F G
(Please circle)
PROJECT: Task PBL 1

Your Name (Matric No): FATIN SHAHIRAH BT FARIDUDIN (225277)
Name of Group
Member( Matric No)
Siti Najwa
Aqidah
Laila Syakira
225311
225536
225658
Project Group: TICTAX
Nur
Hazwani
Nur Aifaa
243249
227198
Scale: 5=Almost always; 4=Usually; 3=Frequently; 2=Sometimes; 1=Never

1. Contributes to effective
group functioning
2. Fulfils his/her role

responsibility
3. Asks questions that help

the group
4. Listens respectfully to
group members
5. Punctuality/Attendance
6. Completes assigned
tasks on time
7. Contributes ideas that

help the group
Scale: 5=Excellent; 4=good; 3= satisfactory; 2=needs work; 1=poor

8. Understand assigned
task
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9. Able to take leadership

role
10. Overall rating of this

person
Total score
45
45
45
45
45
Total Score x 2 =
90
90
90
90
90
GROUP CONTRIBUTION AND END-OF-PROJECT SELF-ASSESSMENT

BKAT 3023 Group: A
(Please circle)
Project Group: __ADVANCED TAXATION________________________

Your matric no:______225277____________________
PROJECT: Task PBL 1_________________________
Date: 22/4/2016_____
I have contributed to group progress in the following way:

I have contributed to group by ask them to complete their work. Besides I contributed by
searching information regarding our task.
In this group, it is hard for me to :

In this group, it is hard for me to calculate the ITA and PS because this is first time I
know about ITA and PS since we dont learn first about this chapter.
I can change this by :

I can change this by ask my member to teach and explain to me about the ITA and PS.
I need to do the following to make our group more effective :

I need to ask them when they want to submit their task and need to ask them to be
29| P a g e
punctual in our discussion.
Overall, I learned the following:

I learned about how to calculate ITA and PS. Besides I know each incentive available in
Malaysia. I also learn how to cooperate with each other and help our group members to
understand the task given. To be a good team member, we need to share our knowledge
with others. I also learn about how to tolerate with other members because if we have the
different answer we will discuss it.

BKAT3023 GROUP: A
F G
(Please circle)
PROJECT: Task PBL 1

Your Name (Matric No): SITI NAJWA BT MOHD ABD HADI (225311)
Name of Group
Member( Matric No)
Fatin Shahirah
Aqidah
Laila Syakira
225277
225536
225658
Nur
Hazwani
Nur Aifaa
243249
227198

group functioning

responsibility

the group
group members
tasks on time

help the group
30| P a g e

task

role

person
Total score
44
44
44
44
44
Total Score x 2 =
88
88
88
88
88

BKAT 3023 Group: A
(Please circle)
Project Group: ADVANCED TAXATION

Your matric no: 225311
PROJECT: Task PBL 1
Date: 22/4/2016

I have contribute by searching and gathering the information that related to the incentives
allowances and help others groupmates and also contribute the opinion when the problem
arised.
In this group, its hard for us to do a discussion since we have different jobs to do
and from different dpp and difficult to do the calculation part since we dont have
enough information and knowledge about this topic.
I can change this by arrange the date and time properly and do some revision about the
calculation part especially pioneer status..

31| P a g e
I need to ask them to actively participate and gives their opinion about the problems that
arised.

I learned what is incentives allowances and how many incentives there are and how to
determine which incentives we should apply based on the calculation of ITA and PS. I
also learned what the procedure should we apply when we used ITA and PS. This
assignment gives me a lot of new information and knowledge since we need to done it by
ourselves.

BKAT3023 GROUP: A
(Please circle)
PROJECT: Task PBL 1 (Investment Incentives)

Your Name (Matric No): AQIDAH BINTI ISMAIL (225536)
Name of Group Member
(Matric No)
FATIN
SHAHIRAH
(225277)
SITI NAJWA
(225311)
LAILA
SYAKIRA
NUR
HAZWANI
(227198)
NUR AIFAA
(243249)
225658
group functioning

responsibility

the group
group members
32| P a g e
tasks on time

help the group

task

role

person
Total score
45
45
45
45
45
Total Score x 2 =
90
90
90
90
90
33| P a g e

BKAT 3023 Group: A
(Please circle)

PROJECT: Task PBL 1 (INVESTMENT INCENTIVES)
Date: 22/4/2016

Searching for the information about the procedure of Investment Tax Allowance that need
to be followed in order to apply Investment Tax Allowance, that our group have been
decided to choose. Besides, giving and encouraging others to give ideas.

Meet with members of the group because of a different schedule.

Discussing and decided the meeting time early so that the other members can adjust their
schedules to fit the suggested time.

Frequently asking the question that I do not understand, for example in calculation part
for pioneer status and investment tax allowance.

I learned about the available investment incentives provided by the Malaysian
Government, how to calculate them and make the decision which one is better to apply
(whether pioneer status or investment tax allowance) and also the procedure that need to
34| P a g e
be follow in order to apply that incentives.

BKAT3023 GROUP: A
(Please circle)
PROJECT: Task Investment Incentives

Your Name (Matric No): LAILA SYAKIRA BINTI RASID (225658)
(Matric No)
FATIN
SHAHIRAH
SITI NAJWA
AQIDAH
(225311)
(225536)
(225277)
NUR
HAZWANI
NUR AIFAA
(243249)
(227198)

group functioning

responsibility

the group
group members
tasks on time

help the group

task

role
35| P a g e
person
Total score
45
45
45
45
45
Total Score x 2 =
90
90
90
90
90
36| P a g e

BKAT 3023 Group: A
(Please circle)

Your matric no: 225658 LAILA SYAKIRA BINTI RASID
PROJECT: Task INVESTMENT INCENTIVES
Date: 22/4/2016

Searching for information, giving and encouraging others to give ideas, help to solve
arising problems, explain the incentives according to the case in the question and
checking the final compilation for mistakes.

Meet all members at one time because of conflicting schedules.

Discussing the meeting time early so that everyone can adjust their schedules to fit the
suggested time.

Create online group conversation to update important information related to our task.

Investment incentives available in Malaysia, how to calculate the exemption amount and
make a decision on which investment to choose (pioneer status or investment tax
allowance) and the procedures that need to be taken for the company to apply for the
incentives.
37| P a g e
38| P a g e

BKAT3023 GROUP: A
(Please circle)
PROJECT: Task Investment Incentives

Your Name (Matric No): NUR HAZWANI BINTI MOHAMAD ZWAWI (227198)
(Matric No)
FATIN
SHAHIRAH
SITI NAJWA
AQIDAH
(225311)
(225536)
(225277)

LAILA
SYAKIRA
NUR AIFAA
(243249)
225658

group functioning

responsibility

the group
group members
tasks on time

help the group

task

role

person
Total score
45
45
45
45
45
Total Score x 2 =
90
90
90
90
90

39| P a g e
BKAT 3023 Group: A
(Please circle)

PROJECT: Task PBL
Date: 21 APRIL 2016

I have contributed to my group by help in getting the information to finish our task. Make
sure that all the information that we find are correct and follow accordingly to the
question.

It is hard for me to find the right information with the right answer

I can change this by referring to the book and to make sure that the information that we
get are correct and not outdated.

I need to remind them the task regarding about our project. Furthermore I have to make
everyone cooperate and learn to be more tolerating with our team members. Different
opinion may lead to misunderstanding within the group members. So, each of the
members must learn to be patient and does not easily hurt with others opinion and action.

I have learned about investment incentives in Malaysia, the pioneer status, investment tax
allowance and many more. Besides I learned how to make the jobs faster and be more
responsible for the project.
40| P a g e
41| P a g e

BKAT3023 GROUP: A
F G
(Please circle)
PROJECT: Task PBL 1

Your Name (Matric No): NUR AIFAA BINTI YEOP SULAIMAN (243249)
Name of Group
Member( Matric No)
Fatin Shahirah
Siti Najwa
Aqidah
225277
225311
225536
Laila
Syakira
Nur Hazwani
227198
225658
group functioning

responsibility

the group
group members
tasks on time

help the group

task

role

person
Total score
44
44
44
44
44
Total Score x 2 =
88
88
88
88
88
42| P a g e
BKAT 3023 Group: A
(Please circle)
Project Group: ADVANCED TAXATION

PROJECT: Task PBL 1
Date: 22/4/2016
I have contributed to group progress in the following way:.

I have contribute by searching information about investment incentive and which one gives a
lot benefits between Pioneer Status and Investment Tax Allowance for a company to choose.

In this group, it is hard for me to do the discussion with my member because of my
schedule is different from others.

I can change this by arrange the date and time properly and keep asking my member the
progress of our task.

I need to ask them to actively participate and gives their opinion about the problems that arised.

I learned about incentive that available in Malaysia and the criteria that each benefits offers to
the company. Any company that making a promoted product or promoted activities may be
eligible to apply ITA or Pioneer status. I also learned how the 70% of exemption from statutory
income in PS and the 60% of QCE in ITA will help the company to reduce tax payable.
43| P a g e
GROUP PRESENTATION RUBRIC
44| P a g e
WRITTEN REPORT RUBRIC
45| P a g e
46| P a g e

Investment Incentive

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Investment Incentive

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A152 SEMESTER 2 2015/2016

BKAT 3023 ADVANCED TAXATION

FATIN SHAHIRAH BINTI FARIDUDIN

Investment Incentive in Malaysia

The rate of allowance is 100% of

qualifying capital expenditure on infrastructure and deducted against statutory income.

INCENTIVES RELATED TO THE PROJECT

Deemed total income

Tax liability (25%)

Less: current year business

Less: non pioneer loss

Pioneer loss b/f

Amount credit to exempt account

INVESTMENT TAX ALLLOWANCE

ITA utilized (max 70% SI)

Tax liability 25%

SUITABLE INCENTIVE THAT SHOULD BE APPLIED

PROCEDURE TO APPLY THE INCENTIVE

Conditions and Procedures for Application

Form PIA, 86 (ITA)-(I).

Required Supporting Documents are as follows:

Form 24 : Latest Return of Allotment of Shares certified by a Company Secretary;

Secretaries and Change Of Particulars certified by a Company Secretary;

3. Application forms are available at:Malaysian Investment Development Authority (MIDA)

MIDA State Offices.

50622 Kuala Lumpur

Procedure for Determination of Effective Date of Investment Tax Allowance

Applications must be made by completing the Form l by attaching a copy of the

A copy of the completed form should be submitted to:-

Chief Executive Officer

Guidelines to Apply For Compliance of Investment Tax Allowance Conditions (ITA

Malaysian Investment Development Authority (MIDA); and

All applications should be made using the following forms :

Required supporting documents are:

Secretaries and Change Of Particulars certified by a Company Secretary;

Application forms are available at:

Ministry of International Trade and Industry

Tel : 603-6203 4801

All applications must be submitted to :

Procedure for Confirmation of Compliance with Conditions Investment Tax

A copy of the completed form should be submitted to:-

Chief Executive Officer

Malaysian Investment Development Authority (MIDA)

SPK 308, TISSA Building

Group Assignment PBL1 First Discussion

17th April 2016

SPK 308, TISSA Building

Group Assignment PBL1 Second Discussion

20th April 2016

SPK 308, TISSA Building

Group Assignment PBL1 Third Discussion

We successfully completed our PBL task on the time

Project Group: TIC TAX

Date: 2 APRIL 2016

Our most important concerns/problems/questions are:

What is investment incentive?

What investment incentives that available to the Malaysian Government.

What investment incentives that suitable to the project company.

How many exemption the company get?

Procedure to apply based on the investment incentives.

The definition of investment incentives.

Pioneer Status- 70% of the statutory income is exempted

Investment Tax Allowance-granted 60% allowance from QCE

Project Group: ADVANCED TAXATION______________________