Investment Tax Allowance
Industrial Building Allowance
An initial allowance of 10% and an annual allowance of 2% is
granted in respect of capital expenditure incurred on a hotel building
which is used for the purpose of a hotel business carried out by a
company granted Pioneer Status or Investment Tax Allowance.
Special Building Allowance for Accommodation and Child Care
Facilities of Employees
Infrastructure Allowance
Double Deduction for Expenses Incurred
on Approved Training
A double deduction for training expenses is provided to companies
engaged in the hotel and tour operation business that send their
employees to approved training institutions.
Double Deduction on Overseas Promotion
Double deduction is also given to hotels and tour operators on
expenditure incurred on promotional activities overseas. The
qualifying expenditure are:-
-
expenditure on publicity and advertisements in any mass media
outside Malaysia;
-
expenditure on the publication of brochures, magazines and guide
books, including delivery costs that are not charged to the
overseas customers;
-
expenditure on market research into new market overseas, subject
to the prior approval of the Minister of Culture, Arts and
Tourism;
-
expenditure that includes fares to any country outside Malaysia
for the purposes of negotiating or securing a contract for
advertising or participating in trade fairs, conferences or fora
approved by the Minister of Culture, Arts and Tourism. Such
expenses are subject to a maximum of RM200 per day for lodging and
RM100 per day for food for the duration of the stay overseas;
-
expenditure in organising trade fairs, conferences or fora
approved by the Minister of Culture, Arts and Tourism; and
-
maintenance of sales offices overseas, for the purposes of
promoting tourism to Malaysia.
Deduction for Tour Operators and Convention Organisers
Tour operators who
bring in at least 500 foreign tourists a year
through group inclusive tours that enter and exit the country by air,
sea or land, will be exempted from tax in respect of income derived
from the business of operating such tours. The incentive is effective
until the Year of Assessment 2000*. It will be given to travel
operators who are registered and approved by the Ministry of Culture,
Arts and Tourism.
Effective from the Year of Assessment 1997, local companies which
promote international conferences in Malaysia will be eligible for
income tax exemption on income earned from bringing at least 500
foreign participants into the country.
* Proposed in the 2000 Budget
Incentive for Domestic Tourism
To encourage domestic tourism, companies that
organize domestic
tour packages with at least 1,200 local tourists per year will be
granted income tax exemption on the income earned. A domestic tour
means any tour package within Malaysia participated by local tourists
(excluding inbound tourists) by air, land or sea transportation and
providing at least one night accommodation. This incentive will be
effective for Year of Assessments 1999 and 2000*.
* Proposed in the 2000 Budget
