Commencement of amendments to the Income Tax Act 1967
(1) Except for sections 6, 7, 11, 12 and paragraph 18(a), this Chapter shall have effect for the year of assessment 1992 and subsequent years of assessment. (2) Sections 6, 11, 12 and paragraph 18(a) shall be deemed to have effect for the year of assessment 1991 and subsequent years of assessment. (3) Section 7 shall be deemed to have come into force on 1 January 1990.
Amendment of section 18
Section 18 of the Income Tax Act 1967 [Act 53], which in this Chapter is referred to as the “principal Act”, is amended by inserting, immediately after the definition of “defined value”, the following new definition: ‘ “disabled person” means any individual certified in writing by the Department of Social Welfare to be a disabled person;’.
Amendment of section 34
Section 34 of the principal Act is amended— (a) in subsection (6)— (i) by deleting the word “and” at the end of paragraph (c); (ii) by substituting for the full stop at the end of paragraph (d) the word “; and”; and (iii) by inserting, immediately after paragraph (d), the following new paragraph (e): “(e) an amount equal to the amount of expenditure incurred by the relevant person in the relevant period on the provision of any equipment necessary to assist any disabled person employed by him in the production of gross income of his from the business.”; and (b) by substituting for subsection (8) the following: “(8) Where any deduction in respect of any matter is capable of being made under this section, no deduction or allowance in respect of that matter shall be made under section 33 or Schedule 3, as the case may be.”.
Amendment of section 43
Section 43 of the principal Act is amended by substituting for the words “, 4 A or 4B ” in paragraph (1)(c) the words “or 4A ”.
Amendment of section 44
Section 44 of the principal Act is amended in subsection (7)— (a) by deleting the word “or” at the end of paragraph (d) in the definition of the word “organization”; (b) by substituting for the full stop at the end of paragraph (e) in the definition of the word “organization” the word “; or”; and (c) by inserting, immediately after paragraph (e) in the definition of the word “organization”, the following new paragraphs (f) and (g): “(f) a Government-assisted organization engaged solely in addressing problems relating to industrial and commercial development and promoting and enhancing the relationship between the public sector and the private sector; or (g) a Government-assisted organization established and maintained exclusively to administer and augment a fund established or held solely for promoting national unity.”.
Amendment of section 46
Section 46 of the principal Act is amended— (a) by deleting the word “and” at the end of paragraph (b); (b) by substituting for the full stop at the end of paragraph (c) the word “; and”; and (c) by inserting, immediately after paragraph (c), the following new paragraph (d): “(d) an amount limited to a maximum of three thousand ringgit expended in that basis year by that individual for the purchase of any necessary basic supporting equipment for his own use, if he is a disabled person, or for the use of his wife, child [as defined in subsection 48(9)] or parent, who is a disabled person.”.
Amendment of section 47
Section 47 of the principal Act is amended by deleting the colon and the proviso thereto in subsection (1).
Amendment of section 48
Section 48 of the principal Act is amended— (a) in subsection (1)— (i) by substituting for the word “sixteen” in paragraph (a) the word “eighteen”; (ii) by substituting for paragraph (d) the following: “(d) pays (wholly or in part) in that basis year for the maintenance at any time in that basis year of an unmarried child if it is proved to the satisfaction of the Director General that the child is physically or mentally disabled,”; (b) in subsection (2), by inserting, immediately after the words “one thousand” in paragraph (b), the words “six hundred”; and (c) in subsection (3), by substituting for the word “sixteen” in paragraph (a) the word “eighteen”.
Amendment of section 49
Section 49 of the principal Act is amended— (a) by deleting the colon and the proviso thereto in subsection (1); and (b) by inserting, immediately after subsection (1), the following new subsection (1A): “(1 A ) Where paragraph 50(3)(b) or (c) applies, there shall be allowed for that year of assessment, in addition to the deduction allowed under subsection (1), a deduction of the aggregate amount of the payments or contributions or both made by the wife or a deduction of three thousand five hundred ringgit, whichever is the less: Provided that where the wife has no total income the total deduction under subsection (1) and this subsection shall not exceed three thousand five hundred ringgit.”.
Amendment of section 50
Section 50 of the principal Act is amended by substituting for paragraph (3)(b) the following: “(b) where the wife makes an election under subsection 45(2) or where the wife has no total income for the year of assessment to which the relevant year relates any premium for any insurance or deferred annuity within the meaning of paragraph (a) which is paid by the wife in the relevant year shall be deemed to have been paid by the husband;”.
Amendment of section 60
Section 60 of the principal Act is amended by substituting for subsection (7) excluding the proviso the following: “(7) Where an insurer carrying on general business has— (a) re-insured the risk or part of the risk with a re-insurer who either does not carry on the business of insuring risks of that kind in Malaysia or does not re-insure the risk through a branch in Malaysia; or (b) re-insured the risk or part of the risk with an insurer licensed under the Offshore Insurance Act 1990 [Act 444], there may be deducted under subparagraph (5)(b)(ii) or (6)(b)(ii) in respect of such risks which are re-insured only ninety-five per cent of the amount which would otherwise be deductible:”.
Amendment of section 60 D
Section 60 D of the principal Act is amended— (a) by substituting for the word “two” in the proviso to subsection (1) the word “three”; (b) by substituting for subsection (3) the following: “(3) Where a venture capital company incurs a loss on the disposal of shares in a venture company or on the liquidation of a venture company in the basis period for a year of assessment, such loss shall be allowed as a deduction under subsection 43(2) or 44(2) in computing the aggregate income or total income of the venture capital company, as the case may be.”; and (c) by substituting for the proviso to subsection (4) the following: “Provided that where, by reason of an absence or insufficiency of such total income for that year of assessment, effect cannot be given or cannot be given in full to any deduction falling to be made to the venture capital company under this section for that year, that deduction which has not been so made shall be made to the company for any subsequent year of assessment.”.
Amendment of section 60 E
Section 60E of the principal Act is amended— (a) by inserting, immediately after subsection (4), the following new subsection (4A ): “(4 A ) The chargeable income of an approved operational headquarters company, resident in Malaysia for the basis year for a year of assessment, in relation to the source consisting of the provision of qualifying services, after deduction of the tax thereon, shall be credited to an account to be kept by that company (that account and that company being referred to as the “exempt account” and the “relevant company” respectively).”; and (b) by substituting for subsection (6) the following: “(6) Paragraphs 5 and 6 of Schedule 7A shall apply as if any reference in those paragraphs to any income exempted or which has become exempt under paragraph 3 were reference to income credited to the exempt account under subsection (4A) or income exempt under subsection (5).”.
Amendment of section 95
Section 95 of the principal Act is amended by substituting for the words “five ringgit” in subsection (1) the words “twenty-five ringgit”.
Amendment of Schedule 1
Schedule 1 to the principal Act is amended by substituting for the rates appearing in Part IV the following: “Chargeable Income Rate of income tax For every ringgit of the first RM10,000 4 per cent For every ringgit of the next RM10,000 6 per cent For every ringgit of the next RM10,000 9 per cent For every ringgit of the next RM10,000 12 per cent “Chargeable Income Rate of income tax For every ringgit of the next RM10,000 15 per cent For every ringgit of the next RM25,000 19 per cent For every ringgit of the next RM25,000 23 per cent For every ringgit of the next RM50,000 27 per cent For every ringgit of the next RM100,000 30 per cent For every ringgit of the next RM250,000 33 per cent For every ringgit of the next RM500,000 35 per cent
Amendment of Schedule 3
Schedule 3 to the principal Act is amended— (a) by substituting for the figures “1975” in subparagraph 2(2) the figures “1991”; (b) by inserting, immediately after paragraph 2, the following new paragraphs 2A , 2B and 2 C: “2A. Subject to this Schedule, where any person had in use machinery or plant for a non-business purpose, and that machinery or plant is subsequently brought into use for the purposes of a business of his, he is deemed to have incurred qualifying plant expenditure in relation to that machinery or plant and the amount of the qualifying plant expenditure shall be taken to be the market value of the machinery or plant on the day the machinery or plant was so brought into use. 2B . Subject to this Schedule, where— (a) any person is exempt from tax by or under this Act; or (b) any income of any person is exempt from tax by or under this Act, and the person had in use machinery or plant for the purposes of a business of his during the exempt period and the machinery or plant continues to be used for the purposes of a business of his immediately after the exempt period, he shall be deemed to have incurred qualifying plant expenditure and the amount of the qualifying plant expenditure in respect thereof shall be taken to be the market value or the net book value, whichever is the lower, of the machinery or plant on the day the exemption ceases. 2C . Subject to this Schedule, where machinery or plant is brought into use for the purposes of a business in Malaysia by any person and prior thereto the machinery or plant had been used for the purposes of a business outside Malaysia, the person shall be deemed to have incurred qualifying plant expenditure and the amount of the qualifying plant expenditure in respect thereof shall be taken to be the market value or the net book value of the machinery or plant, whichever is the lower, on the day the machinery or plant was so brought into use in Malaysia.”; (c) by inserting, immediately after the word “expenditure” at the end of paragraph 10, the words, “or such other fraction as may be prescribed”; and (d) by inserting, immediately after paragraph 13, the following new paragraph 13 A: “13A. Notwithstanding paragraph 10, 11 or 11A no initial allowance shall be made to a person for a year of assessment in relation to an asset and a business of his referred to in paragraph 2A, 2 B or 2 C, as the case may be.”.
Amendment of Schedule 6
Schedule 6 to the principal Act is amended— (a) by deleting the words “literary or” in paragraph 32; (b) by substituting for the word “three” in paragraph 32A the word “six”; (c) by inserting, immediately after paragraph 32A, the following new paragraph 32 B: “32 B. Income of twelve thousand ringgit for the basis year for a year of assessment derived by an individual resident in Malaysia for that basis year from royalty or payment in respect of the publication of, or the use of or the right to use, any literary work.”; and (d) by substituting for paragraph 35 the following: “35. Interest paid or credited to any individual— (a) in respect of securities or bonds issued by the Government; or (b) in respect of bonds, other than convertible loan stock, issued by public companies listed on the Kuala Lumpur Stock Exchange.”.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Text as at 1 January 2006 (LOM reprint); amendments made after that date may not be incorporated. Read the official text ↗
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).