Investment Incentives Order, 2001 · As enacted · Part XIII · Investments in New Technology Companies
100. Deductions allowable to eligible holding company
Official textFrom Attorney General's Chambers, unchanged
( 1)
Where a technology company has incurred an overall loss in respect of its relevant trade or business at the end of its qualifying period, it may, within 6
technology company
"technology company" means a company approved as a technology company under subsection (2) of section 99. Application for and issue of certificate to technology company.
years from that date, by notice in writing to the Collector elect for the overall loss
Collector
"Collector" means the Collector of Income Tax appointed under the Income Tax Act;
(less any amount which has been deducted up to the date of the notice) and the amount of any unabsorbed capital allowances (less any amount which has been deducted up to the date of the notice) to be made available to an eligible holding company as a deduction against the statutory income of the eligible holding company.
eligible holding company
"eligible holding company", in relation to a technology company, means a company incorporated in Brunei Darussalam - {a} which is resident in Brunei Darussalam; {b} which holds shares in the technology company; and {c} in respect of which not less than 30o/o of the paid-up capital is beneficially owned by citizens or person~ to whom a Resident Permit has been granted under regulations made under the Immigration Act throughout the whole of the qualifying period of the technology company, unless the Minister otherwise decides;
The deduction to be made available to an eligible holding company under subsection (1) shall be an amount to be ascertained by multiplying the overall loss !less any amount which has been deducted up to the date of the notice)
or the unabsorbed capital allowances (less any amount which has been deducted up to the date of the notice), as the case may be, by the percentage of the paid-up capital of the technology company held by that eligible holding company throughout the whole of the qualifying period of the technology company.
qualifying period
"qualifying period", in relation to a technology company, means a period of 3 years from the day it commences, for the purposes of the Income Tax Act, to carry on its relevant trade or business;
The deduction shall not in the aggregate exceed such percentage as may be specified in the certificate issued to the technology company under section 99 of the paid-up capital of the technology company held by the eligible holding company (excluding any shares acquired from other shareholders of the technology company) as at the end of such qualifying period.
Notwithstanding subsections (2) and (3), where the percentage of the paid-up capital of the technology company held by an eligible holding company is increased at any time during !.he qualifying period of the technology company, the
Minister may, upon the application by the eligible holding company, if he considers it just and reasonable to do so, increase the amount of the deduction available under subsection (2) up to 50o/o of the paid-up capital of the technology company held by the eligible holding company as at the end of such qualifying period.
Minister
"Minister" means the Minister charged with the responsibility for industrial development;
Where any deduction is made available to an eligible holding company in accordance with this section, any overall loss or unabsorbed capital allowances to the extent of the deductions so made available shall cease to be deductible by the technology company under section 20 or 30 of the Income Tax Act
(Chapter 35), and those sections shall apply to the eligible holding company in respect of the deduction made available as if the eligible holding company was carrying on the trade or business in respect of which the overall loss or the unabsorbed capital allowances were made.
1362
The overall loss or unabsorbed capital allowances made available to an eligible holding company under this section shall first be deducted against the statutory income of the eligible holding company for the year of assessment immediately following the year in which the notice given under subsection (1).
In this section-
"overall loss", in relation to a technology company, means the amount by which the total of the losses exceed the total of the statutory income arising from its relevant trade or business for the whole of its qualifying period ascertained in accordance with the provisions of the Income Tax
relevant trade or business
"relevant trade or business", in relation to a technology company, means the trade or business to which the certificate, issued to the company under subsection (2) of section 99, relates;
Act and subject to such regulatio~s as may be prescribed under this
Order;
"unabsorbed capital allowances", in relation to a technology company, means the balance of any allowance provided for in sections 13, 14, 15,
16, 17 and 18 of the Income Tax Act which remain unabsorbed at the end of the qualifying period of the corhpany in respect of capital expenditure incurred for the purpose of its relevant trade or business before the end of the qualifying period.
(8}
For the purposes of the Income Tax Act and this Part, the Collector may direct that -
{a) any sums payable to a technology company before or after its qualifying period which, but for the provisions of this Part, might reasonably and properly have been expected to be payable to the technology company, in the normal course of business, during its qualifying period shall be treated as having been payable on such date within the qualifying period, as the Collector thinks fit; and
{b) any expense incurred by a technology company during its qualifying period which, but for the provisions of this Part, might reasonably and properly have been expected to be incurred, in the normal course of business, before or after the qualifying period shall be treated as not having been incurred within the qualifying period but as having been incurred on such date before or after that qualifying period, as the Collector thinks fit.
Terms defined in this Act
Collector
Defined · s 3"Collector" means the Collector of Income Tax appointed under the Income Tax Act;
eligible holding company
Defined · s 98"eligible holding company", in relation to a technology company, means a company incorporated in Brunei Darussalam - {a} which is resident in Brunei Darussalam; {b} which holds shares in the technology company; and {c} in respect of which not less than 30o/o of the paid-up capital is beneficially owned by citizens or person~ to whom a Resident Permit has been granted under regulations made under the Immigration Act throughout the whole of the qualifying period of the technology company, unless the Minister otherwise decides;
Minister
Defined · s 3"Minister" means the Minister charged with the responsibility for industrial development;
qualifying period
Defined · s 98"qualifying period", in relation to a technology company, means a period of 3 years from the day it commences, for the purposes of the Income Tax Act, to carry on its relevant trade or business;
relevant trade or business
Defined · s 98"relevant trade or business", in relation to a technology company, means the trade or business to which the certificate, issued to the company under subsection (2) of section 99, relates;
technology company
Defined · s 98"technology company" means a company approved as a technology company under subsection (2) of section 99. Application for and issue of certificate to technology company.