Sustainability
Bursa Malaysia has always advocated corporate responsibility as key to sustainability. Today, sustainability, which supports stakeholder value creation, should be the main focus of every responsible company.
Tip of the Week: Approximately only 10 percent of every landfill can be cleaned up.
Government Incentives
Sustainability-Related Tax Benefits
| Qualifying Expenditure | Reference |
|---|---|
| Double Tax Deduction | |
| Allowances paid to unemployed graduates undergoing certain training scheme | PU (A) 172 / 2007 – Income Tax (Deduction for Allowances under the Capital Market Graduates Training Scheme) Rules 2007 |
| Remuneration paid for the employment of disabled persons | PU (A) 73 / 1982 – Income Tax (Deductions for the Employment of Disabled Persons) Rules 1982 |
| Single Tax Deduction | |
| Cash contribution and sponsorship of a cultural or arts performance held in the Federal Territory Kuala Lumpur | PU (A) 380 / 2005 – Income Tax (Deduction for Cash Contribution and Sponsor of a Cultural or Arts Show held in Federal Territory Kuala Lumpur) Rules 2005 |
| Expenditure incurred up to RM 500,000 per year for sponsoring local arts and cultural performances | S 34 (6) (k) of the Income Tax Act, 1967 |
| Expenditure incurred on the provision of any equipment necessary to assist any disabled person(s) employed by him | S 34 (6) (e) of the Income Tax Act, 1967 |
| Contribution on provision of library facilities which are accessible to the public or libraries of schools and institutions of higher learning (with certain limits) | S 34 (6) (g) and S 44 (8) of the Income Tax Act, 1967 |
| Expenditure incurred for the provision of services, public amenities and contribution to a charity or community project pertaining to education, health, housing, infrastructure, ICT, conservation or preservation of the environment and enhancement of income of the poor as approved by the Minister | S 34 (6) (h) of the Income Tax Act, 1967 |
| Expenses incurred in the provision of infrastructure in relation to business which is also for public benefit and approved by the Minister | S 34 (6) (ha) of the Income Tax Act, 1967 |
| Expenditure incurred for the provision and maintenance of child care facilities for the business | S 34 (6) (i) of the Income Tax Act, 1967 |
| Expenditure incurred in establishing and managing a musical or cultural group approved by the Minister | S 34 (6) (j) of the Income Tax Act, 1967 |
| Expenditure incurred in the provision of a scholarship to a student (provided that certain conditions are satisfied) | S 34 (6) (l) of the Income Tax Act, 1967 |
| Expenditure incurred in providing practical training to nonemployees | S 34 (6) (n) of the Income Tax Act, 1967 |
| Gift of money or contribution in kind (the value to be determined by the relevant local authority) made by him in the basis year for that year for the provision of facilities in public places for the benefit of disabled persons | S 44 (9) of the Income Tax Act, 1967 |
Selected income tax benefits as at May 20101
| Qualifying Expenditure | Reference |
|---|---|
| Single Tax Deduction | |
| Gift of money or medical equipment not exceeding RM 20,000 to any healthcare facility approved by the Ministry of Health | S 44 (10) of the Income Tax Act, 1967 |
| Gift of painting (to be determined by the National Art Gallery or any state art gallery) | S 44 (11) of the Income Tax Act, 1967 |
Approved donation up to 10% of aggregate income
|
S 44 (6), S 44 (11B) and S 44 (11C) of the Income Tax Act 1967 |
| Tax Exemption | |
| Tax exemption for a qualifying person carrying out activities related to the management of public cemeterial grounds | PU (A) 266/2005 Income Tax (Exemption) (No. 36) Order 2005 |
| Tax exemption for management of non-profit oriented schools | PU (A) 247/2008 Income Tax (Exemption) ( No. 5) Order 2008 |
| Tax exemption for income derived from trading of Certified emission Reductions (CERs) certificates | PU (A) 378/2008 Income Tax (Exemption) ( No. 8) Order 2008 |
| Accelerated Capital Allowance | |
| Accelerated capital allowances (Recycling of wastes) | Income Tax (Accelerated Capital Allowances) (Recycling of Wastes) Rules 2000 |
| Accelerated capital allowances (Renewable Energy) | Income Tax (Accelerated Capital Allowances) (Renewable Energy) Rules 2005 |
| Pioneer / ITA | |
| Generation of energy using biomass and other sources of renewable energy | Promotion of Investments Act |
| Conservation of energy for own consumption | Promotion of Investments Act |
| Tax Incentives for buildings awarded Green Building Index (GBI) certificate | PU (A) 414/2009 Income Tax (Exemption) (No. 8) Order 2009 |
| Import Duty and Sales Tax Exemptions | |
| Import duty and sales tax exemption for equipment used in energy conservation which is not produced locally while equipment purchased locally is granted sales tax exemption | Customs Act, 1967 and Sales Tax Act, 1972 |
| Industrial Building Allowance | |
| Expenditure on the construction and purchase of a building for the purposes of that business for the provision of child care facilities for individuals employed by him in that business | Para 42A(2) of Schedule 3 the Income Tax Act, 1967 |
| Stamp Duty | |
| Stamp duty exemption on instrument of transfer for property with GBI certificate | PU (A) 410/2009 Income Tax (Exemption) (No. 8) Order 2009 |
Selected Income Tax Benefits (cont'd) as at May 2010
1 PricewaterhouseCoopers, 2010