Commencement of amendments to the Petroleum (Income Tax) Act 1967
(1) Paragraph 31(a) comes into operation on the coming into operation of this Act. (2) Paragraph 31(b) has effect for the year of assessment 2017 and subsequent years of assessment. (3) Sections 32 and 33 come into operation on 1 January 2017.
Amendment of section 2
Subsection 2(1) of the Petroleum (Income Tax) Act 1967, which is referred to as the “principal Act” in this Chapter, is amended— (a) in the definition of “Malaysia”— (i) by inserting after the words “subsoil of the territorial waters” the words “and the airspace above such areas”; and (ii) by inserting after the words “sovereign rights” the words “or jurisdiction”; and (b) in the definition of “secondary recovery”, by substituting for the words “and/or accelerated recovery of those hydrocarbons” the words “and accelerated recovery of those hydrocarbons which is carried out subsequent to the earlier recovery process”.
Amendment of section 41a
Section 41A of the principal Act is amended— (a) by substituting for subsection (1) the following subsection: “(1) Where in ascertaining the chargeable income of a chargeable person, it appears to the Director General that— (a) no assessment shall be made in respect of the chargeable person for any year of assessment by reason of— (i) absence of adjusted income, statutory income, assessable income or chargeable income of a chargeable person from any of his sources of income; or (ii) exemption granted to that chargeable person under this Act, the Director General may notify the chargeable person in writing that no assessment shall be made for that year of assessment and provide a computation with regard to it; or (b) assessment has been made in respect of the chargeable person, but the chargeable person has no statutory income from petroleum operations, the Director General may notify the chargeable person in writing of an adjustment, if any, made in respect of that petroleum operations and provide a computation with regard to it.”; (b) by inserting after subsection (1) the following subsection: “(1A) Where a chargeable person has furnished to the Director General a return for a year of assessment in accordance with subsection 30(1) and there is no chargeable income for that year of assessment, then if the chargeable person in respect of such return is aggrieved by any practice of the Director General generally prevailing at the time when the return is made— (a) the return shall be deemed to be a notification made by the Director General under subsection (1) on the day the return is furnished; and (b) the notification deemed to have been made under paragraph (a) shall be deemed to have been notified to the chargeable person on the day on which the Director General is deemed to have made the notification.”; (c) in subsection (2), by inserting after the words “subsection (1)” the words “or the return which is deemed under paragraph (1 A )(a) to be a notification made by the Director General”; (d) in subsection (3), by inserting after the words “subsection (1)” the words “or the return which is deemed under paragraph (1A)(a) to be a notification made by the Director General”; and (e) by inserting after subsection (4) the following subsections: “(5) Where a chargeable person has furnished to the Director General a return for a year of assessment in accordance with subsection 30(1) and there is no chargeable income for that year of assessment, then if the chargeable person in respect of such return alleges that— (a) there is an error or a mistake made by the chargeable person in that return, the chargeable person may make an application in writing to the Director General for an amendment to be made in respect of such return; or (b) the amount that has been computed in the return is inaccurate by reason of— (i) any exemption, relief, remission, allowance or deduction granted for that year of assessment under this Act or any other written law published in the Gazette after the year of assessment in which the return is furnished; (ii) the approval for any exemption, relief, remission, allowance or deduction is granted after the year of assessment in which the return is furnished; or (iii) a deduction not allowed in respect of payment of interest, royalty, services, technical advice, assistance, rent or other payments made under any agreement or arrangement for the use of movable property derived from Malaysia or contract payment to a non-resident contractor which is not due to be paid under the provisions of the law for the time being in force in Malaysia relating to income tax on the day the return is furnished, the chargeable person may make an application in writing to the Director General for relief. (6) The application under subsection (5) shall be made— (a) in respect of paragraph (5)(a), within six months from the date the return is furnished; (b) in respect of subparagraph (5)(b)(i) or (ii), within five years after the end of the year the exemption, relief, remission, allowance or deduction is published in the Gazette or the approval is granted, whichever is the later; or (c) in respect of subparagraph (5)(b)(iii), within one year after the end of the year the payment is made. (7) On receiving an application under subsection (5), the Director General shall inquire into the matter and may make amendment in respect of the amount that has been computed in the return as appears to the Director General to be just and reasonable. (8) No amendment shall be allowed under subsection (7) in respect of an error or a mistake as to the basis on which the non-chargeability of the applicant ought to have been computed if the return or statement containing the error or mistake was in fact made on the basis of or in accordance with any practice of the Director General generally prevailing at the time when the return was made. (9) An application under subsection (5) shall be as nearly as may be in the same form as a notice of appeal under section 43. (10) Where the applicant is aggrieved by the Director General’s decision on the application under subsection (5), the following provisions shall apply: (a) the applicant may within six months after being informed of the decision request, in writing, the Director General to send the application forward to the Special Commissioners; (b) the Director General shall within three months after receiving the request send the application forward as if he were sending an appeal forward pursuant to section 46; and (c) the application shall thereupon be deemed to be an appeal and shall be disposed of accordingly.”.
New section 66a
The principal Act is amended by inserting after section 66 the following section: “Relief other than in respect of error or mistake 66 a . (1) Where any chargeable person has furnished to the Director General a return for a year of assessment in accordance with subsection 30(1) and has paid tax for that year of assessment alleges that the assessment relating to that year of assessment is excessive by reason of— (a) any exemption, relief, remission, allowance or deduction granted for that year of assessment under this Act or any other written law is published in the Gazette after the year of assessment in which the return is furnished; (b) the approval for any exemption, relief, remission, allowance or deduction is granted after the year of assessment in which the return is furnished; or (c) a deduction not allowed in respect of payment of interest, royalty, services, technical advice, assistance, rent or other payments made under any agreement or arrangement for the use of movable property derived from Malaysia or contract payment to a non-resident contractor which is not due to be paid under the provisions of the law for the time being in force in Malaysia relating to income tax on the day the return is furnished, the chargeable person may make an application in writing to the Director General for relief. (2) The application under subsection (1) shall be made— (a) in respect of paragraph 1(a) or (b), within five years after the end of the year the exemption, relief, remission, allowance or deducation is published in the Gazette or the approval is granted, whichever is the later; or (b) in respect of paragraph (1)(c), within one year after the end of the year the payment is made. (3) On receiving an application under subsection (1), the Director General shall inquire into the matter and may give by way of repayment of tax such relief as appears to the Director General to be just and reasonable. (4) An application under subsection (1) shall be as nearly as may be in the same form as a notice of appeal under section 43. (5) Where the applicant is aggrieved by the Director General’s decision on the application under subsection (1), the following provisions shall apply: (a) the applicant may within six months after being informed of the decision request, in writing, the Director General to send the application forward to the Special Commissioners; (b) the Director General shall within three months after receiving the request send the application forward as if he were sending an appeal forward pursuant to section 46; and (c) the application shall thereupon be deemed to be an appeal and shall be disposed of accordingly.”.
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).