This Act may be cited as the Finance (No. 2) Act Short title 1985 and shall have effect or be deemed to have effect aencement. as provided in this Act.
Act 323
Finance (No. 2) Act 1985
Akta kewangan (no. 2) 1985
Text recovered by OCR from a scanned copy — section numbers and wording may be wrong. Check the official PDF on lom.agc.gov.my before citing.
An Act to amend the Income Tax Act 1967, the [ BE IT ENACTED bythe Duli Yang Maha Mulia CHAPTER I PRELIMINARY 1. This Act may be cited as the Finance (No. 2) Act Short title 1985 and shall have effect or be deemed to have effect aencement. as provided in this Act. 2. Ihe Income Iax Act 1967, the Supplementary Amend- Income Tax Act 196%, the Real Property Gains lax Acts. Act 1976, the Share (Land Based Company) Transter Act 53, Tax Act 1984 and the Petroleum (Income Tax) Act 1967 Act 169, are amended respectively in the manner specified in Act 310, Chapters II, III, IV, V and VI respectively. 45/67. CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967 3. (1) Except for sections 4 (a), 4 (b), 4 (d), 6 (a), 6 (b), mentoenco- 7(b), 7 (c), 8, 17, 18, 19, 22, 23 and 24 (b) the provisions amend- of this Chapter shall have effect for the year of assess- ments to ment 1986 and subsequent years of assessment.
Data synced
Chapter I — Preliminary
Ihe Income Iax Act 1967, the Supplementary Amend- Income Tax Act 196%, the Real Property Gains lax Acts. Act 1976, the Share (Land Based Company) Transter Act 53, Tax Act 1984 and the Petroleum (Income Tax) Act 1967 Act 169, are amended respectively in the manner specified in Act 310, Chapters II, III, IV, V and VI respectively. 45/67.
Chapter II — Amendments to the income tax act 1967
(1) Except for sections 4 (a), 4 (b), 4 (d), 6 (a), 6 (b), mentoenco- 7(b), 7 (c), 8, 17, 18, 19, 22, 23 and 24 (b) the provisions amendof this Chapter shall have effect for the year of assess- ments to ment 1986 and subsequent years of assessment.
[Cap. II, S. 3-4]
(2) Section 4 (d) shall have effect for the year of assessment 1984 and subsequent years of assessment. asesmenit 1985 and au bsequent years of assesemen of
(4) Sections 6 (a), 6 (b), 7 (b), 7 (c) and 22 shall hav eiect for the year of assessment 1987 and subsequen years of assessment.
(5) Sections 4 (a), 4 (b), 8, 17 and 19 shall be deemed to have come into force on the 25th October 1985.
(6) Section 24 (b) shall be deemed to have come into force on the 25th October 1985: Provided that in the case where a long-term loan agreement-
(i) was entered into and the money lent or deposited in Malaysia was remitted to Malaysia before the 25th October 1985 or was entered into and for which permission was given by the Controller of Foreign Exchange under the Exchange Control Act 1953 on or before the 25th October 1985; and
(ii) the terms, conditions or duration of that longterm loan have not been altered in any manner on or after the 25th October 1985, the interest paid or credited on such loan shall continue to be exempt for the duration of the loan notwithstanding the withdrawal of the exemption provided for in paragraph 31 of Schedule 6 to the Income Tax Aot 1967.
(7) Section 18 shall come into force on the 1st January 1986.
Section 2 of the Income Tax Act 1967, which in this Chapter is referred to as "the principal Act", is amended-
(a) by substituting for the interpretation of "approved loan" in subsection (1), the «"approved loan" means any loan or credit made to the Government, State Government (including any loan or credit made to a person other than the Government or State
FINANCE (No.2) [Cap. II, S. 4-6
(b) by deleting the interpretation of "long-term loan" in subsection (1);
(c) by deleting the interpretation of "shareholders' funds" in subseotion (1); and
(d) by inserting immediately after subsection (6), the followingnew subsection (7): "(7) Any reference in this Act to interest shall apply, mutatis mutandis, to gains or profits received and expenses incurred, in lieu of interest, in transactions conducted in accordance with the Syariah.". stituting for paragraph (a), the following:
Section 3A of the principal Act is amendedby sub-peton3e "(a) a company, two million ringgit;".
Section 5 of the principal Act is amended—
(a) by subsituting for the fuill stop at the end of ecitonds. subsection (1), a colon;
(b) bytion (ing the following new proviso to subn respect of interest paid or credited to thal ndividual.", and "(3) In ascertaining the chargeable ion secion 3a there shall noe be taposn
[Cap. II, S. 6-9] into account any statutory income o1 adjusted loss in respect of petroleun operations by a petroleum company and dividends paid by a petroleum company out of its income derived from its petroleum operations within section 6. 15/67.
Subsection (1) of section 6 of the principal Act is amended—
(a) by deleting the words "or long-term loan" in subparagraph (i) of paragraph (b);
(b) by substituting for the full stop at the end of paragraph (e), a semi-colon; and
(c) by inserting immediately after paragraph (e), the following new paragraph (f): "(f) subject to the provisions of section 109c but notwithstanding any other provisions of this Act, income tax shall be charged ror each year of assessment upon th‹ income of an individual resident il which consists of interest (other than interest exempt from tax under this Act or any order made thereto) Amend nent of section 13. Soctonte. appropriate rate as specified under Part
Subsection (1) of section 13 of the principal Act is amended by substituting for the proviso to subparagraph(ii) of paragraph (b), the following: "Provided that the benefit or amenity enjoyed under this subparagraph is confined only to the employee and members of his immediate family.".
Section 18 of the principal Act is amended-
(a) by inserting immediately after the interpretapreati "of vensurancee following new inter- •"insurance" includes a takaful Act 312. scheme pursuant to the Takaful Act 1984., and
[Cap. II, S. 9-11)
(b) by inserting immediately after the interpretation of "plantation", the following new interpretation of "premiums": '"premiums", in relation to insurance, includes contributions or instalments payable under a takaful Act 312. 1984ge pursuant to the Takaful Act
Section 44 of the principal Act is amended-
(a) by substituting for the full stop at the end of tectien 4t. subsection (6), a colon; and
(b) by inserting immediately after subsection (6), the following new proviso: "Provided that where the statutory income from an employment, pension or profession falls to be assessed in the name of an individual's wife for the relevant year pursuant to section 45 (4), there shall be deducted from such statutory income or the aggregate of such statutory income, as the case may be, an bct ia tre bas year lor thac yeuan,mad by
Section 45 of the principal Act is amended-
(a) by inserting immediately after the words section 45 income from employment" in subsection (4). , from pension granted on optional retirement from employment under any writter
(b) by substituting for subsection (5), the follow- "(5) Notwithstanding any other provisions of assessment in her name
(a) her total income falling to be aggregated with that of her husband under subsection (2) for that year of assess-
[Cap. II, S. 11-17] section 47, section 48. section 49. section 50. shall be treated as having no chargeabl income for that year of assessment in regard to that part of her total income which is aggregated with that of her husband; and
(b) the income assessed in her name shall Rrotesaten orte agtuae o oach statutory income, as the case may be, made pursuany to seution aling to bo
(c) by inserting immediately after the words income from employment" in subsection (6), a comina and the word "pension".
Section 47 of the principal Act is amended by inserting immediately after the words "income from her employment" in subsection (4), a comma and the word "pénsion".
Subsection (1) of section 48 of the principal Act is amended by inserting immediately after the words "income from her employment" in the proviso, a comma and the word "pension".
Subseotion (1) of section 49 of the principal Act is amended by inserting immediately after the words "income from her employment" in the proviso, a comma and the word "pension".
Section 50 of the principal Act is amended by inserting immediately after the words "from her employsubsection (4), a comma and the word New section 60AA
The principal Aat is amended by inserting immediately after section 60A, , the following new section 60AA: Applicaion of 60AA. The provisions of sections 60 and 60A sections shall apply, mutatis mutandis, to a takafu 0 arakadul , business carried on pursuant to the Takaful business. Act 1984.". Act 312. men ent
Section 109 of the principal Act is amended by section 109. deleting the words "or long-term loan" in subsection (1).
[Cap. II, S. 18]
The principal Act is amended by inserting imme- Ner liately after section 109B, the following new section sectio 109c: under this Act or any order made thereto accruing in or derived from Malaysia to a1 individual resident in Malaysia, he shall upor paying or crediting such interest deduct there. shall within one month after paying or crediting the interest render an account and pay the amount of that tax to the Director General: Provided that the Director General may under special circumstances, allow extension of time for tax deducted to be paid over. Act 102. Ac1 276. him to the Government and shall be payable forthwith to the Director General. SENE payer.
(4) In this section "person" refers to a bank licensed under the Finance Companies Act 1969, a registered co-operative society, Bank Barbad, Or any Mer viscituion that may ty
[Cap. II, S. 19-22] SeGion® Senedule 1.
Section 136 of the principal Act is amended—
(a) by substituting for the full stop at the end of subsection (4), a colon; and
(b) by inserting immediately after subsection (4), the following new proviso: "Provided that the Director General may by writing under his hand authorize any Senior Assistant or Assistant Directors of Inland Revenue (subject to any exceptions o1 limitations contained in the authorization) to exercise his function under section 123.".
Item 1 of Part II of Schedule 1 to the principal Act is amended-
(a) by deleting the words "or long-term loan"; and
(b) by substituting for the words "15%" under the column "Rate of income tax", the words Part III of Schedule 1. New Part Schedule 1.
Jadual 1 kepada Akta ibu dipinda dengan menggantikan Bahagian III dengan yang berikut:
“ PART III
Excess profit tax shall be charged for each year of assessment at the rate of:
(1) In the case of a company … … … 3 per cent
(2) In the case of any other person … … 5 per cent.”.
Bahagian VI baharu kepada Jadual 1
Part III — Excess profit tax shall be charged for each
Schedule 1 to the principal Act is amended b nserting immediately after Part V, the following ne Part VI:
Part VI — Notwithstanding Part I, income tax shall be
Schedule 3 to the principal Act is amended by Aentoinserting immediately after paragraph 67, the following Shedulo 3. new paragraph 67A: Thia Sdoseche Ben dieared as a uicingr and toe rovisions of this Schedule relatiné to industri: uilding shall apply, mutatis mutandis. to suc building: Provided that-
(a) the balance of residual expenditure under paragraph 68 of this Schedule shall be reduced by the amount of any compensation received; and
(b) the disposal value of the asset shall be taken to be zero when the agreement expires or is terminated.".
Schedule 6 to the principal Act is amended-
(a) bye kolloving imm påacery pit 3o paragraph 30, ahceite s. the following new paragraph 30A: or Deputy President of the Senate, Speaker sentatiposy Speaker of the House of Represpeaker of the State Legislative Assembly, member of the Senate, member of the House of Representatives or member of the State Legislalive Assembly: Provided that-
(a) the exemption in respect of pension shall apply only when the person 1as attained the age of fifty-five or i he Director General is satisfied tha
[Cap. II-IV, S. 24-28] such person ceased to be President, Deputy President, Speaker,_Deputy Speaker or member due to ill-health; and nent of Schedulo
(b) by deleting paragraph 31.
Schedule 7a to the principal Act is amended by substituting for the word "seven" in subparagraph (b) of paragraph 2, the word "ten".
Peruntukan dalam Bab ini hendaklah berkuat kuasa bagi tahun taksiran 1986 dan tahun-tahun taksiran yang berikutnya.
Part VI — Notwithstanding Part I, income tax shall be
Chapter III — Amendment to the supplementary income tax
Thed Sy deleintay Tole or P And 1et Act 54.
Chapter IV — Amendments to the real property gains tax
(1) Except for sections 39 (a), 39 (c), 39 (d), 39 (e), 39 (g) and 39 (D) the provisions of this Chapter shall come into force on the 1st January 1986.
(2) Sections 39 (a), 39 (c), 39 (d), 39 (e) and 39 (D) shall be deemed to have come into force on the Ist July 1983.
(3) Section 39 (g) shall come into force on the 1st January 1986 except the provisions of paragraph 15B (2) contained therein shall be deemed to have come into force on the 1st July 1983.
[Cap. IV, S. 29-31)
The Real Property Gains Tax Act 1976, which in Amend his Chapter is referred to as "the principal Act", is ment ol amended by substituting for the interpretation' of 4ct62 "assessment" in section 2, the following: • "assessment" means any assessment or additional assessment made under this Aot;.
Akta ibu dipinda dengan memotong seksyen 12.
Seksyen 13 Akta ibu dipinda dengan menggantikan subseksyen (1) dan (2) dengan yang berikut:
“(1) Tiap-tiap orang yang boleh dikenakan cukai yang melupuskan sesuatu aset yang boleh dikenakan cukai dan tiaptiap orang yang memperolehi aset yang dilupuskan sedemikian itu hendaklah, dalam masa satu bulan (atau dalam apa-apa tempoh yang lanjut sebagaimana dibenarkan oleh Ketua Pengarah apabila suatu permintaan bertulis dibuat kepadanya) selepas tarikh pelupusan aset itu, membuat suatu penyata—
(a) menyatakan berkenaan dengan aset yang dilupuskan itu harga perolehan, harga lupusan dan keuntungan atau kerugian atas pelupusan itu;
(b) memberi segala maklumat yang perlu untuk menentukan harga perolehan dan harga lupusan bagi aset yang dilupuskan; dan
(c) jika nilai pasaran bagi aset itu hendak dipakai bagi maksud Akta ini, mengemukakan suatu nilaian bertulis mengenai aset itu oleh seorang penilai.
(2) Tiap-tiap orang nomini hendaklah, dalam tempoh satu bulan (atau dalam apa-apa tempoh yang lanjut sebagaimana dibenarkan oleh Ketua Pengarah apabila suatu permintaan bertulis dibuat kepadanya) selepas tarikh pelupusan sesuatu aset yang boleh dikenakan cukai olehnya bagi pihak mana-mana orang, membuat suatu penyata menyatakan—
(a) nama dan alamat orang yang bagi pihaknya pelupusan itu telah dilakukan;
(b) aset yang dilupuskan itu; dan
(c) tarikh dia pertama kali mula memegang aset itu sebagai seorang nomini bagi orang itu.”.
Part VI — Notwithstanding Part I, income tax shall be
Chapter IV — Amendments to the real property gains tax
The principal Act is amended by dleting sectionm potiorz sti sing for subetone and a, daolded by eu a. "(1) Every chargeable person who disposes of a nargeable asset ana every person who acquire he asset so disposed of shall. within one montl or such further period as the Director Genera nay allow on a written request being made to him of the date of disposal of that asset, make a return—
(a) specifying in respect of the asset disposed of ne acquisition price, the disposal price an he gain or loss on the disposa
(b) furnishing all information necessary to determine the acquisition price and disposal price of the asset disposed of; and
(c) where the market value of the asset is to be taken for the purposes of this Act, submit a written valuation of the asset by a valuer.
(2) Every nominee shall, within one month (or such further period as the Director General may allow on a written request being made to him) of the date of disposal by him of a chargeable asset on behalf of any person, make a return specifying-
(a) the name and address of the person on whose behalf the disposal was made;
(b) the asset disposed of; and
(c) the date on which he first began to hold tha asset as nominee for that person."
section 14, section 16. section17, [Cap. IV, S. 32-34] 32. Subsection (1) of section 14 of the principal Act is amended—
(a) by deleting the word "or" at the end of paragraph (a);
(b) by sarapitutin for tice ful anop tat thorgndog c) by inserting immediately after paragraph (b he following new paragraph (c) "(c) reduce an assessment made for the year of assessment for which the return was made, in giving effect to section 7 (4) (a).".
Section 16 of the principal Act is amended by substituting for subsection (1), the following: "(1) Where in a case to which section 13 applies—
(a) the consideration on the disposal of a chargeable asset consists of another asset (whether chargeable or not);
(b) there is a failure by both the disposer and Director General in the prescribed form as required under section 13; or
(c) the consideration on the disposal of a chargeable asset is for the purposes of the Act the market value of the asset, the Director General may make on the acquirer an assessment of an amount equal to the amount of the tax payable by the disposer and shall include in the assessment a sum equal to ten per cent of that amount, which shall "be deemed to be an increase of the kind mentioned in section 21 (4).".
Section 17 of the principal Act is amended-
(a) by renumbering section 17 (1) as section 17; and
(b) by deleting subsection (2).
[Cap. IV, S.35] 21A and 21B: "Certificate 21A. The Director General shall send to both Icarance. the disposer and the acquirer a certificate o learance in the prescribed form-
(a) on payment being made in accordanc with section 21; 01
(b) where he is satisfied that no chargeable gain has arisen, on being so e bithe hansederati on at any
(c) in a case where paragraph (b) applies the acquirer shall deliver the sun tated in the requisition to the Directo leneral within the time specified i the requisition.
(2) A requisition issued under this section shall be deemed to be an assessment for the purposes of this Act.
[Cap. IV, S. 35-39]
(3) An acquirer who is required under this section to deliver to the Director General a sum which he should have, but has not retainer Lmendent of section 24, nent of section 27. Amend. Shedule 2 in the sum under section 16 (1) and to have paid that sum in pursuance of that assessment.".
Akta ibu dipinda dengan memasukkan sebaik selepas seksyen 21, seksyen baharu 21A dan 21B yang berikut:
“Perakuan kelulusan
21A. Ketua Pengarah hendaklah menghantar kepada keduaduanya pelupus dan pemeroleh suatu perakuan kelulusan dalam borang yang ditetapkan—
(a) apabila pembayaran dibuat mengikut seksyen 21; atau
(b) jika dia berpuas hati bahawa tiada keuntungan yang boleh dikenakan cukai telah timbul, apabila sahaja berpuas hati dengan yang sedemikian itu.
Permintaan kepada pemeroleh
21B. (1) Jika sesuatu pelupusan yang seksyen 13 terpakai baginya, balasannya terdiri kesemuanya atau sebahagiannya daripada wang—
(a) pemeroleh itu hendaklah, sehingga dia menerima perakuan kelulusan daripada Ketua Pengarah di bawah seksyen 21A, memegang simpan kesemua wang itu (tertakluk kepada syarat bahawa wang yang dipegang simpan itu tidaklah boleh melebihi sejumlah wang yang dikira mengikut kadar atas mana cukai boleh dikenakan pada masa itu, atas jumlah nilai balasan itu);
(b) Ketua Pengarah boleh, pada bila-bila masa, sebelum dia menghantar perakuan kelulusan itu, menyampaikan kepada pemeroleh suatu permintaan bertulis dalam borang yang ditetapkan memintanya membayar kesemua atau apa-apa bahagian daripada jumlah wang yang dipegang simpan di bawah perenggan (a) (atau, jika
pemeroleh itu tidak mematuhi perenggan itu, jumlah wang yang sepatutnya telah dipegang simpan sedemikian) dalam masa yang dinyatakan dalam permintaan itu;
(c) dalam hal di mana perenggan (b) terpakai, pemeroleh hendaklah menyerahkan jumlah wang yang disebut dalam permintaan itu kepada Ketua Pengarah dalam masa yang dinyatakan dalam permintaan itu.
(2) Sesuatu permintaan yang dikeluarkan di bawah seksyen ini hendaklah disifatkan sebagai suatu taksiran bagi maksud Akta ini.
(3) Seseorang pemeroleh yang dikehendaki di bawah seksyen ini supaya menyerahkan kepada Ketua Pengarah sejumlah wang yang sepatutnya telah dipegang simpan tetapi tidak dipegang simpan olehnya di bawah perenggan 1(a), hendaklah, apabila mematuhi permintaan itu, disifatkan bagi maksud subseksyen 16(3) sebagai telah ditaksirkan sebanyak jumlah wang di bawah subseksyen 16(1) dan sebagai telah membayar jumlah wang itu menurut taksiran itu.”.
Part VI — Notwithstanding Part I, income tax shall be
Chapter IV — Amendments to the real property gains tax
Section 24 of the principal Act is amended-
(al) by subsection &o t h werds s recion 21 (
(b) by substituting for the word "assest" in subsection (2), the word "asset"; and
(c) by substituting for the words "section 12" in subsection (7), the words "section 21b".
Section 27 of the principal Act is amended by deleting the words "a notification under section 12 or" in subseotion (1).
Section 29 of the principal Act is amended by deleting the words "fails to give the notification required by section 12 or" wherever they appear in subsections
(1) and (3).
Schedule 2 to the principal Act is amended-
(a) by inserting immediately after the interpretation of "connected person" in subparagraph (1) of paragraph 1, the following new interpretatior • "Islamic bank" has the meaning Act 276. assigned to it under the Islamic Banking Act 1983;;
(b) by inserting imraediately after subparagraph (3) of paragraph 1, the following new subparagraph (4): "(4) For the purposes of this Schedule, "a consideration consisting substantially of shares" means a consideration consisting of not less than seventy-five per cent of shares.",
[Cap. IV, S.39]
(c) by inserting immediately after subparagraph (4) the following new subparagraph (5): "(5) Any reference in this Schedule to interest shall apply, mutatis mutandis, to expenses incurred in lieu of interest, in transactions conducted in accordance with
(d) by substituting for the full stop at the end of subparagraph (f) of paragraph 3, a semi-colon;
(e) by inserting immediately after subparagraph (Đ of paragraph 3, the following new subparagraph (g): "(g) the disposal of an asset by a person to an "Islamic bank under a scheme where that person is financed by such bank in accordance with the Syariah.";
(f) by substituting for subparagraph (3) of paragraph 4, the following: "(3) Where an asset, which is disposed of, was acquired by the disposer prior to the Ist January 1970, the market value of the asset as at the 1st January 1970 shall be substituted for-
(a) the consideration and incidental costs of the kind mentioned in subparagraph
(b) the market value of the asset as at the date of transfer of ownership of th asset mentioned in paragraph 19 (1 and (3л); whichever is the lower, mentioned ir paragraph 19 (2); oг
(d) the value of the asset for estate duty purposes referred to in paragraph 19 (3), January 1970 shall be disregarded.";
[Cap. IV, S. 39]
(g) by inserting immediately after paragraph 15, the following new paragraphs 15A and 15B: **Sposof 154. A disposal of an asset shall be deemed to take place ular cases
(a) in the case of a gift of an asset on death, on the date of transfer of ownership of the asset to the recipient;
(b) in the case where a legatee accepts an asset in place of a money legacy, on the date of transfer of ownership of the asset to the legatee;
(c) in the case where an asset of a deceased person is transferred to a legatee by his executor (irrespective of whether he himself is the legatee or not) or by the trustee of a trust created under his will, on the date of transfer of ownership of the asset to the legatee. intelile person is lispo edt oif (o dhervise san person is disposed of (otherwise than to a legatee) by his executor or by the trustee of a trust created under lis will such executor or trustee sha e deemed to have acquired it on th date of death of the deceased person. wilth hnan inn tacity provcdei red an Islamic Bank in accordance with the Syariah, the acquirer shall be deemed to have acquired the asset on the date of the agreement for the acquisition of the asset entered into between the acquirer and a person other than such Islamic bank or, II the case where the asset is owned by such bank, on the date of the agreement for the acquisition of the asset entered into with the bank.";
[Cap. IV, S. 39]
(h) by inserting immediately after the words "a company resident in Malaysia" in the proviso to subparagraph (1) of paragraph 17, the words "which is being restructured under such scheme";
(i) by substituting for the words "the value of the asset for estate duty purposes" in subparagraph
(1) of paragraph 19, the words "the market value of the asset as at the date of transfer of ownership of the asset to the recipient",
(j) by substituting for the words "the value of the asset for estate duty purposes" in subparagraph
(2) of paragraph 19, the words "the market value of the asset as at the date of transfer of ownership of the asset to the legatee";
(k) by inserting immediately after subparagraph (3) of paragraph 19, the following new subparagraph (3A): "(3A) Subject to paragraph 4 (3), where an asset of a deceased person is transferred to a legatee by his executor (irrespective of whether he himself is the legatee or not) or by the trustee of a trust created under his will, there shall be deemed to be an acquisition of the asset by the legatee at an acquisition price equal to the market value of the asset as at the date of transfer of ownership of the asset to the legatee less the sum of the kind referred to in paragraph 4 (1) (a), (b) or (c) received by or forfeited, as the case may be, to that legatee."; and () by inserting immediately after subparagraph (6) of paragraph 19, the following new subparagraph (7): "(7) Where an asset is acquired by a person . (hereinafter referred to as "the acquirer") with a financing facility provided
[Cap. IV, S. 39-41] by an Islamic bank in accordance with the Syariah, the acquisition price of the asset shall e the amount or value of the consideratio iven by or on behalf of the acquirer to th Tlasmic dapoini thae aase wotere thas sut is owned by such bank, the amount or value of the consideration given to the bank, for the acquisition of the asset (together with the incidental costs to him of the acquisition) less the sum of the kind referred to in paragraph 4 (1) (a), (b) or (c) received by or forfeited, as the case may be, to that acquirer"
Schedule 3 to the principal Act is amended by Schedule 3. inserting the following new proviso to subparagraph (1) of paragraph 3: "Provided that where an individual is not a is aentiand or a peperment resedent this p ieg raiie shall not apply.". Anedio. si. Siche dor o 4 to taph in tine 1 Alovi a.
Schedule 4 to the principal Act is amended by sub- "2. An amount of five thousand ringgit or ten per cent of the chargeable gain, whichever is greater, in respect of a chargeable gain accruing to an individual who is a citizen or an individual who is not a citizen but is a permanent resident, on the disposal of a chargeable asset which is not or was not part of a larger chargeable asset at the time of the disposal: Provided that in the case of a disposal by a coproprietor of his share of the chargeable asset, such disposal shall not be regarded as a disposal of part of a larger chargeable asset for purposes of this paragraph.".
[Cap. V, S. 42-43]
Chapter V — Amendments to the share (land based company) transfer tax act 1984
The provisions of this Chapter shall be deemed to Mentoencohave come into force on the 19th October 1984. 13a nster Tax Act h9s4, aroi c in d is chd cor s ae amtinh, ferred to as "the principal Act", is amended-
(a) by inserting immediately after the interpretation of "company" in subsection (1), the following new interpretation of "controlled company": •"controlled company" has the meaning assigned to it under the Income Tax Act 1967; ;
(b) by substituting for the interpretation of "disposal" in subsection (1), the following: '"disposal", in relation to a chargeable asset, means the sale, conveyance, transfer, exchange, assignment, settlement, delivery or alienation (including by way of an amalgamation, take over, merger or reconstruction of a company or companies), of shares: Provided that the following shall not be regarded as a disposal:
(a) issue of loan stock or debentures; and
(b) conversion of loan stock or debentures into shares;;
(c) by inserting immediately after the interpretation of "disposal" in subsection (1), the following new interpretations of "industrial estate" and "interposed company": ‹ "industrial estate" means an area of land designated as such by the State Authority;
[Cap. V, S. 43] "interposed company" means a subsidiary under section 5 of the Com- Act 125. panies Act 1965
(d) by substituting for the interpretation of "land based company" in subsection (1), the • "land based company" means a company wning land in Malaysia as one of the asset t the time of disposal of shares in th Cand by ioelf hords an thaterest in shares (directly or through one or more interposed companies) in a company which owns land in Malaysia as one of the assets at the time of disposal of shares: Provided that a company shall not be considered a land based company where land is used wholly and exclusively for its factory, office, hotel building (including land in use as golf course, tennis court, children's playrouna) or business premises where no par of the premises is let out, and the land s‹ used is in the judgment of the Director General not excessive to normal requirements but commensurate with the size of the factory, oflice, hotel bullding or business premises, or where the land so used is land in an industrial Provided further that a company is deemed to hold an interest in shares in a land based
(a) directly if it holds more than twenty pencunt of heaing share o oh that nand based company; or () Chries it the intrpoin core oaggregate of the nominal amount of voting shares of that land basec
FINANCE (No.2) [Cap. V, S. 43-45]
(e) by inserting immediately after the interpretation of "Special Commissioners" in subsection
(1), the following new interpretation of "State Authority" : •"State Authority" has the meaning ussigned to it under the National Land 56/65. '"voting share" means a voting Act 125. share under the Companies Ac 1965. and
(g) by inserting immediately after subsection (2), the following new subsection (3): "(3) References in this section to a factory, ffice or business premises shall be deemer o include social and recreational facilitie for employees and living accommodation for employees other than directors (not being service directors) of a controlled company.".
Seksyen 2 Akta Cukai Pemindahan Syer (Syarikat Berasaskan Tanah) 1984 [Akta 310], yang disebut “Akta ibu” dalam Bab ini, dipinda—
*CATATAN—Akta Cukai Pemindahan Syer (Syarikat Berasaskan Tanah) 1984 [Akta 310] telah dimansuhkan oleh Akta Kewangan 1988 [Akta 364]–lihat seksyen 26 Akta 364.
(a) dengan memasukkan sebaik selepas tafsiran “isteri” dalam subseksyen (1) tafsiran baharu “kawasan perindustrian” yang berikut:
‘ “kawasan perindustrian” ertinya suatu kawasan tanah yang ditetapkan sebagai sedemikian oleh Pihak Berkuasa Negeri;’;
(b) dengan menggantikan tafsiran “pelupusan” dalam subseksyen (1) dengan yang berikut:
‘ “pelupusan”, berhubung dengan aset yang boleh dikenakan cukai, ertinya penjualan, pemindahhakan, pemindahmilikan, pertukaran, penyerahhakan, penyelesaian, penyerahan atau pemberimilikan syer (termasuk dengan cara penyatuan, pengambilan alih, percantuman atau penyusunan semula suatu syarikat atau syarikat-syarikat):
Dengan syarat bahawa yang berikut ini tidaklah boleh diambil kira sebagai suatu pelupusan:
(a) pengeluaran saham pinjaman atau debentur; dan
(b) penukaran saham pinjaman atau debentur kepada syer;’;
(c) dengan memasukkan sebaik selepas tafsiran “Pesuruhjaya Khas” dalam subseksyen (1) tafsiran baharu “Pihak Berkuasa Negeri” yang berikut:
‘ “Pihak Berkuasa Negeri” mempunyai erti yang diberikan kepadanya di bawah Kanun Tanah Negara [Akta 56 tahun 1965];’;
(d) dengan menggantikan tafsiran “syarikat yang berasaskan tanah” dalam subseksyen (1) dengan yang berikut:
‘ “syarikat berasaskan tanah” ertinya suatu syarikat yang memiliki tanah di Malaysia sebagai salah satu aset pada masa pelupusan syer dalam syarikat itu, atau suatu syarikat yang sungguhpun ianya sendiri tidak memiliki tanah ada memegang kepentingan dalam syer (secara langsung atau melalui satu syarikat perantaraan atau lebih) dalam suatu syarikat yang memiliki tanah di Malaysia sebagai salah satu aset pada masa pelupusan syer:
Dengan syarat bahawa sesuatu syarikat tidaklah boleh dianggap sebagai syarikat berasaskan tanah di mana tanah digunakan keseluruhannya dan terutamanya bagi maksud kilang, pejabat, bangunan hotel (termasuk tanah yang digunakan sebagai padang golf, gelanggang tenis, padang permainan kanak-kanak) atau premis perniagaan jika tiada mana-mana bahagian premis itu disewa, dan tanah yang digunakan sedemikian itu pada pendapat Ketua Pengarah tidak melebihi kehendak biasa tetapi mencukupi dengan besarnya kilang, pejabat, bangunan hotel atau premis perniagaan, atau jika tanah yang digunakan sedemikian itu terletak dalam kawasan perindustrian; dan
Dengan syarat selanjutnya bahawa sesuatu syarikat disifatkan sebagai memegang kepentingan dalam syer dalam syarikat berasaskan tanah—
(a) secara langsung jika ia memegang lebih daripada dua puluh peratus pada agregatnya daripada bilangan nominal syer mengundi dalam syarikat yang berasaskan tanah itu; atau
(b) melalui satu syarikat perantaraan atau lebih jika syarikat perantaraan itu atau mana-mana syarikat perantaraan (kiranya terdapat lebih daripada satu syarikat perantaraan) memegang lebih daripada dua puluh peratus pada agregatnya daripada
bilangan nominal syer mengundi dalam syarikat yang berasaskan tanah itu;’;
(e) dengan memasukkan sebaik selepas tafsiran “syarikat berasaskan tanah” dalam subseksyen (1) tafsiran baharu “syarikat perantaraan” dan “syarikat terkawal” yang berikut:
‘ “syarikat perantaraan” ertinya suatu subsidiari di bawah seksyen 5 *Akta Syarikat 1965 [Akta 125];
“syarikat terkawal” mempunyai erti yang diberikan kepadanya di bawah Akta Cukai Pendapatan 1967;’;
(f) dengan memasukkan sebaik selepas tafsiran “syer” dalam subseksyen (1) tafsiran baharu “syer mengundi” yang berikut:
‘ “syer mengundi”ertinya suatu syer mengundi di bawah Akta Syarikat 1965;’;
(g) dengan memasukkan sebaik selepas subseksyen (2), subseksyen baharu (3) yang berikut:
“(3) Sebutan dalam seksyen ini mengenai kilang, pejabat atau premis perniagaan hendaklah disifatkan termasuk kemudahan sosial dan rekreasi bagi pekerja dan tempat kediaman bagi pekerja selain pengarah (bukannya pengarah berkhidmat) sesuatu syarikat terkawal.”.
Seksyen 4 Akta ibu dipinda dengan memasukkan sebaik selepas perkataan “aset yang boleh dikenakan cukai” di baris 11 perkataan “dalam syarikat yang berasaskan tanah itu”.
*CATATAN—Akta Syarikat 1965 [Akta 125] telah dimansuhkan oleh Akta Syarikat 2016 [Akta 777] yang mula berkuat kuasa pada 31 Januari 2017–lihat subseksyen 620(1) Akta 777.
Part VI — Notwithstanding Part I, income tax shall be
Chapter V — Amendments to the share (land based company) transfer tax act 1984
The principal Act is amended by inserting imme- New diately after section 4, the following new section 4A: section 4s. any consideration between companies in any scheme of reorganisation,
(b) a chargeable asset is disposed of by a liquidator of a company and the liquidation of the company was made under a scheme of reorganisation, reconstruction or amalgamation,
[Cap. V, S. 45-50] and the transferee company is resident in Malaysia, the transfer shall not be treated as asset in any scheme under subparagraph (a) or (b) unless the Director General is satisfied that such a chargeable asset is transferred or disposed of to implement any such scheme ompany resident in Malaysia which is bein estructured in compliance with Governmen section9. section 44. Schedule 2
Section 5 of the principal Act is amended by inserting immediately after the words "such approval" at the end of the proviso thereto, the words "or, where such approval is conditional, the date when the condition or last of the conditions is satisfied".
Section 9 of the principal Act is amended by inserting immediately after the words "one month of the date of disposal" in subsection (2), the words "(or such further period as the Director General may allow on a written request made to him)". am.ended by subastict ing for tae othd eicepal ct is oroviso, the word "exempt"
Subseksyen 44(2) Akta ibu bagi teks bahasa Inggeris dipinda dengan menggantikan perkataan “except” dalam proviso dengan perkataan “exempt”.
Part VI — Notwithstanding Part I, income tax shall be
Chapter V — Amendments to the share (land based company) transfer tax act 1984
Section 45 of the principal Act is amended by inerting immediately after the words "any disposal o hares" in subsection (1). the words "the value of whic is five hundred thousand ringgit or more".
Schedule 2 to the principal Aot is amended—
(a) by substisuting for paragraph 3, the following: "3. Disposals of chargeable assets in a land oased company between a person and his nominee or trustee where such person is absolutely entitled as against the nominee or
[Cap. V-VI, S. 50-52] trustee or between nominees or trustees where the beneficial ownership of the chargeable asset is not changed by such disposals: Provided that this paragraph shall not apply to a settlement ieferred to in section 20 (3)."; and
(b) by inserting immediately after paragraph 3, the following new paragraph 4: "4. Disposals of chargeable assets in a land based company by the Government, a State Government or a local authority.".
Chapter VI — Amendments to the petroleum (income tax)
(1) Except for section 52, the provision of this Commence Chapter shall be deemed to have effect for the year of anendassessment1985 and subsequent years of assessment.
(2) Section 52 shal be deemed to have come sato f0t force on the Ist January 1980.
Subsection (1) of section 2 of the Petroleum (Income Aent o-. Tax) Act 1967, which in this Chapter is referred to as section2 "the principal Act", is amended by inserting imme- 4/07. diately after the interpretation of "natural gas", the following new interpretation of "partnership": '"partnership" means an association or arrangement of any kind (including, but not limited to, joint ventures, syndicates and cases where a party to the association or arrangement is itself a partnership) between parties who have agreed to combine any of their rights, powers, property, labour or skill for the purposes of carrying on petroleum operations and sharing any petroleum production oI any profit derived therefrom;.
section 22, [Cap. VI, S. 53]
Subsection (1) of seotion 22 of the prinoipal Act is amended by inserting immediately after the words "a State Government", the words " ", a local authority". DICETAK OLEH HAJI MOKITAR SHAMSUDDIN, J.S.D., S.M.I., S.M.S., K.M.N., P.I.S., KETUA PENGARAH PERCETAKAN NEGARA, KUALA LUMPUR DENGAN PERINTAH PADA 9HB JANUARI 1986 Harga: $2
Cite this legislation
- Official citation
- Act 323
- Source
- lom.agc.gov.my
- Data synced
- Licence
- Official text, free to reproduce (Copyright Act 1987 [Act 332] s 3) ↗
Finance (No. 2) Act 1985 [Act 323] (Laws of Malaysia, lom.agc.gov.my). Retrieved via LawPlayer, https://lawplayer.com/my/act/act-323
This text is synced from lom.agc.gov.my. In case of any discrepancy, the authoritative text prevails.
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).