This Act may be cited as the Finance Act 1993. Short title.
Act 497
Finance Act 1993
Akta kewangan 1993
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An Act to amend the Income Tax Act 1967, the Stamp Act 1949 and the Finance Act 1991, and to repeal the Supplementary Income Tax Act 1967. [5th Februany 1993 ] BE IT ENACTED by the Duli Yang Maha Mulia Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in arliament assembled, and by the authority of the same as follows: CHAPTER I PRELIMINARY 1. This Act may be cited as the Finance Act 1993. Short title. 2. (1) The Income Tax Act 1967, the Stamp Act 1949 Amendments and the Finance Act 1991 are amended in the manner β’ and repeal. specified in Chapters II, III and IV respectively. Act 451. (2) The Supplementary Income Tax Act 1967 is Act 54. repealed in the manner specified in Chapter V. CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967 3. (1) Except for sections 4, 6(b) and 7, this Chapter Commence- shall have effect for the year of assessment 1993 and ment of amendments subsequent years of assessment. to the Income (2) Section 4 shall have effect for the year of 1967. assessment 1994 and subsequent years of assessment. (3) Section 6(b) shall be deemed to have come into force for the year of assessment 1989.
Data synced
Chapter I β Preliminary
(1) The Income Tax Act 1967, the Stamp Act 1949 Amendments and the Finance Act 1991 are amended in the manner β’ and repeal. specified in Chapters II, III and IV respectively. Act 451.
(2) The Supplementary Income Tax Act 1967 is Act 54. repealed in the manner specified in Chapter V.
Chapter II β Amendments to the income tax act 1967
(1) Except for sections 4, 6(b) and 7, this Chapter Commenceshall have effect for the year of assessment 1993 and ment of amendments subsequent years of assessment. to the Income
(2) Section 4 shall have effect for the year of 1967. assessment 1994 and subsequent years of assessment.
(3) Section 6(b) shall be deemed to have come into force for the year of assessment 1989.
(4) Section 7 shall be deemed to have come into force on the 30th October 1992. Amendment
Section 34 of the Income Tax Act 1967, which is referred to as the "principal Act" in this Chapter, is amended, in subsection (6)-
(a) by deleting the word "and" at the and of
(b) by substituting for the full stop at the end of paragraph (e) the punctuation mark and word "; and"; and
(c) by inserting, after paragraph (e), the following paragraph: "(f) an amount equal to the expenditure incurred by the relevant person in the relevant period in respect of translation into or publication in the national language of cultural, literary, professional, scientific or technical books approved by the Dewan Bahasa dan Pustaka.". New section
The principal Act is amended by inserting, after section 60E, the following section: holding 60F. (1) Where an investment holding company is resident for the basis year for a year of assessment there shall be deducted in arriving at the total income before any deduction falling to be made under section 44(1)(c) an amount in respect of expenses incurred by that company in the basis period for that year of assessment, which amount shall be determined in accordance with the formulaβ B A x - 4C
where A is the total of the permitted expenses incurred for that basis period reduced by any receipt of a similar kind; B is the gross income consisting of dividend, interest and rent chargeable to tax for that basis period; and C is the aggregate of the gross income consisting of dividend (whether exempt or not), interest and rent, and gains made from the realisation of investments for that basis period: Provided thatβ
(a) the amount of deduction to be made shall not exceed five per cent of the gross income consisting of dividend, interest and rent for that basis period; and
(b) where, by reason of an absence or insufficiency of aggregate 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 investment holding company under this section for that year, that deduction which has not been so made shall not be made to the investment holding company for any subsequent year of assessment.
(2) In this sectionβ "investment holding company" means a company whose activities consist wholly in the making of investments and whose income is derived therefrom;
Amendment of section "permitted expenses" means expenses incurred by an investment holding company in respect ot-
(a) directors' fees;
(b) wages, salaries and allowances;
(c) management fees;
(d) secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage; and
(e) rent and other expenses incidental to the maintenance of an office, which are not deductible under section 33(1).".
Section 108 of the principal Act is amended-
(a) by inserting, after subsection (2A), the following subsection: "(2B) Notwithstanding any other provision of this Act, where a dividend is paid, credited or distributed with or without deduction of tax during the basis year for the year of assessment 1993, the amount of the dividend received by the shareholder shall be deemed to be a dividend of such a gross amount as after deduction of tax at the rate of thirty-four per cent would be equal to-
(a) the amount in fact paid or credited; or
(b) where the dividend consists of property other than money, the amount of the market value of that property at the time of the dividend's distribution, and a sum equal to the difference between that gross amount and the amount mentioned in paragraph (a) or (b), as the case may be, shall be deemed to have been deducted from the dividend as tax.";
(b) by substituting for subsection (4A) the following subsection: "(4A) In any case where tax has been deducted or deemed to have been deducted at
the rate of forty per cent on any dividend paid, credited or distributed during the basis year for the year of assessment 1989 to which shail be determined aes, chrate of paridy toial per cent."; and
(c) by inserting, after subsection (4A), the following subsection: "(4B) In any case where tax has been deducted or deemed to have been deducted at the rate of thirty-five per cent on any dividend paid, credited or distributed during the basis year for the year of assessment 1993 to which subsection (2B) applies, the compared total shall be determined at the rate of thirty-four per cent.".
Section 109 of the principal Act is amended by Amendment inserting, after the figures "33" in subsection (1), the ifsection word and figures "or 35".
Section 110 of the principal Act is amended by Amendment inserting, after subsection (1A), the following subsection: 110. of section "(1B) Notwithstanding subsection (1), where tax on any dividend paid, credited or distributed during the basis year for the year of assessment 1993 has been deducted at the rate of thirty-five per cent, the tax to be set off under subsection (1) shall be the sum deemed to be the tax deducted from such dividend under section 108(2B).".
Schedule 1 to the principal Act is amendedβ Amendment of Schedule 1.
(a) by substituting for the rates in paragraph 1 of Part I the following rates: "Chargeable Income Rate of Income Tax 2 per cent For every ringgit of the first $2,500 $2,500 5 per cent
Chargeable Income $5,000 515,0v0y ringsit of the next $15,000 $20,000 $30,000 For every ringgit exceeding Rate of Income Tax 8 per cent 10 per cent 15 per cent 21 per cent 26 per cent 31 per cent 34 per cent $100,000
(b) by substituting for the figures "35" in paragraph 2 of Part I the figures "34";
(c) by substituting for the rates in Part IV the following rates: "Chargeable Income Rate of Income Tax 2 per cent For every ringgit of the first $25,000 $25,000 $50,000 $100,000 $250,000 For every ringgit exceeding $500,000 4 per cent 7 per cent 10 per cent 13 per cent 17 per cent 22 per cent 26 per cent 29 per cent 32 per cent 34 per cent ".
Schedule 6 to the principal Act is amended
(a) in paragraph 25A, by inserting, after the word "gratuity", the words "or by way of payment in lieu of leave";
(b) in paragraph 35β
(i) by substituting for the full stop at the end of subparagraph (b) the punctuation mark and word "; or"; and
(ii) by inserting, after subparagraph (b), the following subparagraph: "(c) in respect of bonds, other than convertible loan stock, issued by a company rated by Rating Agency Malaysia Berhad.". mendme Schedule
Chapter III β Amendments to the stamp act 1949
This Chapter shall come into force on the 1st January memnence- 1993. Ac 1949.mp reterred fe ais n 9 op rinei sal Acr ain tis c hapie, is aeretmes, amended, in subsection (1), by substituting for paragraph
(c) the following paragraph: "(c) that the said banker, stockbroker or insurer do pay on the 1st day of January and the 1st day of July in each year to the Collector the amount due and collected thereon as duties on such unstamped cheques, contract notes or policies of insurance, and where he fails to pay the amount due on each date specified or within eight days immediately thereafter, he shall in addition to the amount due pay a
Substitution of section further amount of five hundred ringgit or ten er centum of the amount due whichever i he greater and any amount due shall be recoverable as a debt due to the Government;".
(2) A banker, stockbroker or insurer authorised under subsection (1) of section 9 of the principal Act before the 1st January 1993 shall as from that date be subiect to the conditions in that subsection as amended by subsection (1) of this section.
The principal Act is amended by substituting for section 12A the following section: "Assessment 12A. Where an instrument is chargeable with value of duty under Item 32(a) of the First Schedule, the property date for determining the market value of any transfer property being transferred, settled or gifted shall beβ
(a) in the case of a settlement or gift, the date of execution of the instrument of trust or settlement or gift; or
(b) in the case of a transfer implementing a sale under a duly stamped agreement of sale and purchase, the date of execution of that agreement; or
(c) in the case of a transfer of any property granted by a statutory body, a local authority or any co-operative society registered under any laws relating to cooperative societies, the date when the final terms of transfer had been communicated to the transferee, and in the case of subsequent resale of that patuery bhy dar fooal aunsenity oy the board of the co-operative society for that resale; or i
(d) in the case of a transfer under a duly stamped sale and purchase agreement
where financial arrangements have been made in accordance with the Syariah, the date of execution of that agreement; or e) in any other case, the date of executio f the instrument of transfer.'
The First Schedule to the principal Act is amended Amendment by substituting for the provisions in the third column to schedute Item 32(a) the following provisions: "For every $100 or fractional part of $100 of the mount of the money value of the consideration o he market value of the property, whichever is th greaterβ
(i) $1.00 on the first $100,000;
(ii) $2.00 on any amount in excess of $100,000 but not exceeding $500,000;
(iii) $3.00 on any amount in excess of $500,000 but not exceeding $2,000,000;
(iv) $4.00 on any amount in excess of $2,000,000.".
Chapter IV β Amendments to the finance act 1991
(1) Section 3 of the Finance Act 1991 is Amendment amendedof section 3.
(a) by inserting, after the figure and punctuation mark "7" in subsection (1), the figure and punctuation mark "8,"; and
(b) by inserting, after the figure and punctuation mark "7," in subsection (3), the figure and punctuation mark "8,"
(2) The amendments in paragraphs (a) and (b) of subsection (1) shall have effect for the years of assessment 1991 and 1992 respectively.
Cite this legislation
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- Act 497
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Finance Act 1993 [Act 497] (Laws of Malaysia, lom.agc.gov.my). Retrieved via LawPlayer, https://lawplayer.com/my/act/act-497
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).