wayground logo

Free Printable Worksheets

NEW

Font size

S
M
L
XL
Worksheets

Tax Incentives

Total questions: 10

Worksheet time: 15mins

Name
Class
Date
1.

Which of the following is NOT listed as promoted activities qualify for tax incentives available for hotel and tourism industry?

a)

Expansion or modernization of existing hotels

b)

Establishment of roof top events space with a capacity to accommodate at least 1,000 guests

c)

Establishment of recreational camps

d)

Establishment of convention centers with a capacity to accommodate at least 3,000 participants

2.

a)

i and iii

b)

i, ii and iii

c)

i, iii and iv

d)

All of the above

3.

Sana Sini Sdn Bhd, tourism company involved in promoted activities in Tanjung Dawai, Kedah. If Sana Sini were granted the Investment Tax Allowance (ITA), it will get

a)

An allowance of 60% on the qualifying capital expenditure (QCE) incurred within five (5) years from the date on which the first qualifying capital expenditure is incurred and this allowance can be offset against 70% of SI in the YA

b)

An allowance of 70% on the qualifying capital expenditure (QCE) incurred within five (5) years from the date on which the first qualifying capital expenditure is incurred and this allowance can be offset against 60% of SI in the YA

c)

An allowance of 100% on the qualifying capital expenditure (QCE) incurred within five (5) years from the date on which the first qualifying capital expenditure is incurred and this allowance can be offset against 100% of SI in the YA

d)

An allowance of 100% on the qualifying capital expenditure (QCE) incurred within ten (10) years from the date on which the first qualifying capital expenditure is incurred and this allowance can be offset against 100% of SI in the YA

4.

Home Holiday Sdn Bhd, which makes up its accounts to 31 December annually, has established a new tourist project named Duduk Rumah in Penarik, Terengganu. The company was granted pioneer status by MITI on its production day commencing 1 February 2014. For the year of assessment 2019, Home Holiday plans to apply for tax incentives offered by MIDA.


Which of the following incentives is eligible for Home Holiday to apply?

a)

Pioneer Status

b)

Investment Tax Allowance

c)

Enhanced Incentives for Undertaking New Investment in Hotel

d)

None of these incentives

5.

“Start-up” financing means

a)

Financing provided by an individual or a company to a VC for the purposes of research, assessment and development of an initial concept or prototype, where the VC’s organisational structure has not been formalised.

b)

Financing provided by an individual or a company to a VC for product development and initial marketing, where the VC is in the process of formalising its organisational structure, or if its organisational structure has been formalised, the VC has not sold its products commercially.

c)

Capital expenditure or working capital to initiate commercialization of a technology or product.

d)

Additional capital expenditure or additional working capital to increase production capacity, or for marketing or product development.

6.

a)

i only

b)

i and ii

c)

All of the above

d)

None of the above

7.

Where a VCC incurs a loss from the disposal of shares in a VC in the basis period for any year of assessment within the exempt period, such loss

a)

shall be carried forward to the post-exempt period.

b)

cannot be carried forward to the post-exempt period.

c)

will be disregarded.

d)

will be debited into exempt income account (EIA).

8.

A VCC is exempted from the payment of tax for a period of ten (10) years of assessment or the life of the fund established for the purpose of investing in a VC whichever is the lesser in respect of the following statutory income EXCEPT

a)

Interest income from loan given to VC

b)

Interest income arising from savings or fixed deposits and profits from syariah-based deposits

c)

Dividend income from portfolio share investment listed in Bursa Malaysia

d)

Dividend income from investment in property trust funds

9.

Mak Cik Kiah wanted to invest in a new business venture in genetic engineering. A new company GenG Malaysia Sdn Bhd was incorporated for this business venture. Mak Cik Kiah only provided seed capital and early stage financing for this business venture and was not actively involved in the management of the VC as she is busy with her ‘pisang goreng’ business.


As regard to Venture Capital Tax Incentives, Mak Cik Kiah would

a)

not qualify to claim any tax incentives because genetic engineering is not a technology-based business activity listed in the guidelines issued by SC

b)

not qualify for any tax incentives because she does not provide early-stage financing to GenG Malaysia Sdn Bhd

c)

qualify for tax exemption, provided that she obtains certification from the SC confirming that all the qualification conditions have been met

d)

qualify for the tax deduction, provided that she obtains certification from the SC confirming that all the qualification conditions have been met

10.
a)

i only

b)

ii only

c)

All of the above

d)

None of the above