Commencement of amendments to the Petroleum (Income Tax)
(1) Except for paragraphs 18(a), (b), (c) and (d), the amendments in sections 17 and 18 shall have effect for the year of assessment 2000 and subsequent years of assessment. (2) The amendments in paragraphs 18(a), (b), (c) and (d) shall be deemed to have effect for the year of assessment 1996 and subsequent years of assessment.
Amendment of section 13A
The Petroleum (Income Tax) Act 1967, which in this Chapter is referred to as the “principal Act”, is amended in section 13 A by inserting after subsection (1) the following subsection: “(1A) Subsection (1) shall not apply where a chargeable person (in this subsection referred to as the “disposer”) disposes of an asset in relation to which an initial or annual allowance has been made or would have been made, if claimed, to him (in this subsection referred to as the “asset”) and that asset continues to be used for petroleum operations by another chargeable person (in this subsection referred to as the “acquirer”) in another petroleum agreement under which the acquirer has not incurred qualifying expenditure in respect of that asset and at the time of the disposal— (a) the disposer of the asset is a company and the acquirer of the asset is a partnership in which the disposer is also a partner; (b) the disposer of the asset and the acquirer of the asset are the same partnership but operating under separate petroleum agreements; (c) the disposer of the asset and the acquirer of the asset are partnerships and all the partners in the partnership that is disposing of the asset are also partners in the partnership that is acquiring the asset; or (d) the disposer of the asset and the acquirer of the asset are the same company but operating under separate petroleum agreements.”.
Amendment of Second Schedule
The Second Schedule to the principal Act is amended— (a) in paragraph 8— (i) by substituting for the words “subparagraph 2(c)” the words “subsubparagraph 2(1)(c)”; (ii) in subsubparagraph (a), by inserting after the words “forty per cent” the words “or such other rate as may be prescribed”; and (iii) in subsubparagraph (b), by inserting after the words “twenty per cent” the words “or such other rate as may be prescribed”; (b) in paragraph 12— (i) in subparagraph (1)— (A) by substituting for the word “ot” the word “to”; (B) by substituting for the words “subparagraph 2(c)” the words “subsubparagraph 2(1)(c)”; (C) in subsubparagraph (a), by inserting after the words “ten per cent” the words “or such other rate as may be prescribed”; and (D) in subsubparagraph (b), by inserting after the words “eight per cent” the words “or such other rate as may be prescribed”; and (ii) in subparagraph (2)— (A) by substituting for the words “subparagraph 2(c)” the words “subsubparagraph 2(1)(c)”; and (B) by inserting after the words “ten per cent” the words “or such other rate as may be prescribed”; (c) in paragraph 13, by inserting after the words “two per cent” the words “or such other rate as may be prescribed”; (d) in subparagraph 14(1), by inserting after the word “fraction” the words “or such other fraction as may be prescribed”; (e) by inserting after paragraph 21 the following paragraph: “21 A. Paragraphs 22 and 23 A shall apply where a chargeable person (in this paragraph referred to as the “disposer”) disposes of an asset in relation to which an initial or annual allowance has been made or would have been made, if claimed, to him (in this paragraph referred to as the “asset”) and that asset continues to be used for petroleum operations by another chargeable person (in this paragraph referred to as the “acquirer”) in another petroleum agreement under which the acquirer has not incurred qualifying expenditure in respect of that asset and at the time of the disposal— (a) the disposer of the asset is a company and the acquirer of the asset is a partnership in which the disposer is also a partner; (b) the disposer of the asset and the acquirer of the asset are the same partnership but operating under separate petroleum agreements; (c) the disposer of the asset and the acquirer of the asset are partnerships and all the partners in the partnership that is disposing of the asset are also partners in the partnership that is acquiring the asset; or (d) the disposer of the asset and the acquirer of the asset are the same company but operating under separate petroleum agreements, the disposer of the asset, the asset in question and the acquirer of the asset being in those paragraphs referred to as the disposer, the asset and the acquirer respectively.”; (f) in subparagraph 22(1), by inserting after the words “paragraph 23” the words “or 23A”; (g) by inserting after paragraph 23 the following paragraph: “23A. The acquirer shall be deemed to have incurred qualifying expenditure in relation to the asset of an amount equal to the sum ascertained under paragraph 22 and in relation to the asset— (a) the date on which the acquirer shall be deemed to have incurred the expenditure; (b) the withdrawal of any allowance which would but for paragraph 22 and this paragraph fall to be made to the disposer; (c) the amount of any allowance or charge to be made to or on the acquirer; and (d) such other matters as may be considered necessary by the Minister, shall be determined in such manner as may be prescribed by rules to be made for the purposes of paragraphs 21 A and 22 and this paragraph.”; and (h) in subsubparagraph 41(b), by inserting before the word “where” the words “subject to subparagraph 22(1),”.
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).