As a measure to further develop domestic tourism, it is proposed that income derived by companies from organising domestic tour packages involving at least 1,200 local tourists annually be exempted from income tax.

For this exemption, a domestic tour package means any tour package within Malaysia participated by local tourists whether transportation is by air, land or sea and providing accommodation for at least one night. Local tourists are those other than inbound tourists.

This proposal will be effective for years of assessment 1999 and 2000.
   
 


To promote optimum use of the National Sports Complex, National Theatre, National Arts Gallery and Petronas Philharmonic Hall, it is proposed that cultural and arts shows, exhibitions, festivals and sports activities of international standard held at these places be given the following tax exemptions :

  1. income tax exemption up to year of assessment 2001 on income earned by non-residents from performing in cultural and arts shows and participating in exhibitions, games and sports;
  2. income tax exemption of 50% up to year of assessment 2001 be given on income earned by the organizers from organizing sports, cultural and arts shows, exhibitions and festivals involving foreign participation.

It is also proposed that admission tickets to cultural and arts shows, exhibitions, festivals and sports competitions be exempt from the entertainment duty.

The above proposals are to be effective from October 23, 1998.

   
 
To make Langkawi a leading centre in the region for the repair and maintenance of luxury boats and yachts, it is proposed that such activities undertaken in Langkawi be granted income tax exemption for a period of 5 years.

The proposal is to be effective after October 23, 1998.
   


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