(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 formula— 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 that— (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 section— "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 amended— 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 35— (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
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
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).