EBA2143 Tax Incentives

A tax incentive is an aspect of a government's taxation policy designed to incentivize or encourage a particular economic activity by reducing tax payments.

• True

• False

Tax incentives can have both positive and negative impacts on an economy.

• True

• False

What are NOT the objectives of tax incentives?

• Attract Foreign Direct Investments (FDI)

• Attract investors to set up operations in Malaysia

• Tax management to avoid taxation

• Encourage local companies to automate, diversify, expand, modernize business

What are the types of tax incentives given by the Malaysian government?

(multiple correct answers)

• Exemption of income

• allowances on qualifying expenditure

• Double deduction of expenses

• Exemption tax

What are the statutory references for tax incentives?

(multiple correct answers)

• Promotion of Investments Act 1986 (PIA 1986)

• Income Tax Act 1967 (The Act)

What are the major tax incentives given by the IRBM?

(multiple correct answers)

• Pioneer status

• Investment tax allowance

• Reinvestment allowance