Clause 6 of the Bill seeks to introduce a new Section 6D to the ITA. Tax rebates may be granted to companies or limited liability partnerships for a period of 3 consecutive years from the year of assessment (YA) in which a company or limited liability partnership first commences operation, in an amount equivalent to its operating or capital expenditure incurred up to a maximum limit of RM20,000 for each year of assessment.

However, there are certain conditions to be met in order to qualify for the tax rebate under the proposed Section 6D, among others:

• The company or limited liability partnership must be a tax resident and incorporated in Malaysia;
• The paid-up or capital contribution must not be more than RM2.5 million, and its gross business income must not exceed RM50 million; and
• The company or limited liability partnership must commence operation on or after 1.7.2020 but not later than 31.12.2021.