Commencement of amendments to the Petroleum (Income Tax) Act 1967
(1) Section 35 has effect for the year of assessment 2003 and subsequent years of assessment. (2) Section 36 has effect for the year of assessment 2005 and subsequent years of assessment. (3) Sections 37, 38 and 39 have effect for the year of assessment 2006 and subsequent years of assessment.
Amendment of section 2
The Petroleum (Income Tax) Act 1967, which is referred to as the “principal Act” in this Chapter, is amended in section 2 by substituting for the definition of “petroleum operations” the following definition: ‘ “petroleum operations” means— (a) searching for and winning or obtaining of petroleum in Malaysia by or on behalf of any person for his own account or on a joint account with any other person by any drilling, mining, extracting or other like operations or process, in the course of a business carried on by that person engaged in such operations, and all operations incidental thereto, and any sale or disposal by or on behalf of that person of petroleum so won or obtained, and includes the transportation within Malaysia by or on behalf of that person of petroleum so won or obtained to any point of sale or delivery or export, but does not include— (i) any transportation of petroleum outside Malaysia; (ii) any process of refining or liquefying of petroleum; (iii) any dealings with products so refined or liquefied; or (iv) service involving the supply and use of rigs, derricks, ocean tankers and barges; and (b) any sale or disposal by Petroleum Nasional Berhad within Malaysia of petroleum obtained from outside of Malaysia and includes the transportation within Malaysia by, or on behalf of, Petroleum Nasional Berhad of such petroleum to any point of sale or delivery within Malaysia;’.
Amendment of section 18
Paragraph 18(1)(h) of the principal Act is amended— (a) by substituting for the semicolon at the end of the paragraph a colon; and (b) by inserting the proviso to that paragraph as follows: “Provided that this paragraph shall not apply if the payer has paid the amount of deduction of tax and the increased amount which is equal to ten per cent of that deduction which are due and payable under the provisions of that law;”.
Amendment of Second Schedule
The Second Schedule of the principal Act is amended— (a) in paragraph 3— (i) by renumbering that paragraph as subparagraph 3(1); (ii) in subparagraph 3(1) as renumbered, by substituting for the words “paragraphs 3 A to” the word “paragraph”; and (iii) by inserting after subparagraph 3(1) the following subparagraph: “(2) For the purpose of this Schedule, the qualifying building expenditure in the case of purchase of a building shall be the purchase price of that building.”; (b) by deleting paragraphs 3A, 4 and 5; and (c) in paragraph 18— (i) by substituting for the colon at the end of that paragraph a full stop; and (ii) by deleting the proviso to that paragraph.
Special provision relating to paragraph 3 of Second Schedule
Notwithstanding the provision of paragraph 3 of Second Schedule to the principal Act as amended under paragraph 37(a) of this Act, where the amount of qualifying building expenditure has been determined pursuant to paragraph 3, 3A, 4 or 5 of the principal Act prior to the coming into operation of the amendment to those paragraphs under section 37 of this Act, that amount of qualifying building expenditure shall continue to apply for the purposes of that Schedule.
Special provision relating to paragraph 18 of Second Schedule
Notwithstanding the provision of paragraph 18 of Second Schedule to the principal Act, where prior to the coming into operation of the amendment under paragraph 37(c) of this Act, a person has incurred capital expenditure on the construction or the purchase of a building which is used as an industrial building, no charge (if any) shall be made on that person under paragraph 18 of Second Schedule to the principal Act as amended if the building is disposed off after the basis period for a year of assessment which is the fiftieth year of assessment after the year of assessment in the basis year in which that building was constructed.
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).