Commencement of amendments to the Income Tax Act 1967
(1) Sections 4, 7 and 8 have effect for the year of assessment 2019 and subsequent years of assessment. (2) Sections 5, 9, 10, 13 and 14 come into operation on the coming into operation of this Act. (3) Sections 6 and 12 have effect for the year of assessment 2018 and subsequent years of assessment. (4) Section 11 comes into operation on 1 January 2018.
Amendment of section 21a
The Income Tax Act 1967, which is referred to as the “principal Act” in this Chapter, is amended in section 21a, by inserting after subsection (3) the following subsection: “(3a) Where a company, limited liability partnership, trust body or co-operative society has made up the accounts of its operations for a period of twelve months ending on a day in a basis year and has failed to make up its accounts ending on the corresponding day in the following basis year (“hereinafter referred to as “the new accounts”), the company, limited liability partnership, trust body or co-operative society shall notify the Director General of such failure in the prescribed form— (a) in the case where the new accounts are made up ending before the corresponding day, thirty days before the end of the new accounts; or (b) in the case where the new accounts are made up ending after the corresponding day, thirty days before the corresponding day.”.
Amendment of section 44
Subsection 44(12) of the principal Act is amended by inserting after the word “company” wherever appearing the words “, limited liability partnership”.
Amendment of section 60aa
Section 60aa of the principal Act is amended— (a) by substituting for subparagraph (9)(b)(iii) the following subparagraph: “(iii) the amount of management expenses incurred by him in that period in connection with— (A) wakalah fee receivable in relation to the general fund, inward retakaful fund, offshore fund or family retakaful fund; (B) any other fee receivable in relation to the general fund, inward retakaful fund, offshore fund or family retakaful fund; or (C) any other fee receivable in relation to an investment fund from the family fund; and”; (b) by substituting for subparagraph (10)(b)(iii) the following subparagraph: “(iii) the amount of management expenses incurred by him in that period in connection with— (A) wakalah fee receivable in relation to the general fund, inward retakaful fund, offshore fund or family retakaful; (B) any other fee receivable in relation to the general fund, inward retakaful fund, offshore fund or family retakaful fund; or (C) any other fee receivable in relation to an investment fund from the family fund; and”; and (c) by inserting after subsection (10a) the following subsection: “(10b) The management expenses incurred for the basis period for a year of assessment under— (a) subsubparagraph (9)(b)(iii)(B) or (C) shall be determined in accordance with the following formula: Ax C B where A is the total amount of gross income for that period referred to in subparagraph (9)(a)(iii) excluding the amount of gross income in respect of wakalah fee; B is the total amount of gross income for that period referred to in subparagraph (9)(a)(iii) excluding the amount of gross income in respect of wakalah fee for commission; and C is the total management expenses incurred under subparagraph (9)(b)(iii); or (b) subsubparagraph (10)(b)(iii)(B) or (C) shall be determined in accordance with the following formula: Ax C B where A is the total amount of gross income for that period referred to in subparagraph (10)(a)(iii), excluding the amount of gross income in respect of wakalah fee; B is the total amount of gross income for that period referred to in subparagraph (10)(a)(iii), excluding the amount of gross income in respect of wakalah fee for commission; and C is the total management expenses incurred under subparagraph (10)(b)(iii).”.
Amendment of section 107c
Section 107C of the principal Act is amended by inserting after subsection (11a) the following subsection: “(11b) Where there is a failure by a company, limited liability partnership, trust body or co-operative society to make up its accounts ending on the corresponding day in the following basis year pursuant to subsection 21a(3) and the company, limited liability partnership, trust body or co-operative society fails to give a notification in accordance with subsection 21a(3a), any amount of increase or sum that had been imposed under this section based on the accounting period prior to the new accounts as mentioned in subsection 21a(3a) shall continue to be recoverable as if it were tax due and payable from the company, limited liability partnership, trust body or co-operative society to the Government.”.
Amendment of section 112
Section 112 of the principal Act is amended by inserting after subsection (3) the following subsection: “(3a) Where there is a failure by a company, limited liability partnership, trust body or co-operative society to make up its accounts ending on the corresponding day in the following basis year pursuant to subsection 21a(3) and the company, limited liability partnership, trust body or co-operative society fails to give a notification in accordance with subsection 21a(3a), any penalty that had been imposed under subsection (3) based on the accounting period prior to the new accounts as mentioned in subsection 21a(3a) shall continue to be recoverable under this Act.”.
Amendment of section 120
Subsection 120(1) of the principal Act is amended— (a) in paragraph (f), by deleting the word “or”; (b) in paragraph (h), by substituting for the comma at the end of the paragraph the words “; or” ; and (c) by inserting after paragraph (h) the following paragraph: “(i) fails to notify the Director General as required by subsection 21a(3a),”.
Amendment of section 127
The proviso to subsection 127(5) of the principal Act is amended by substituting for the words “or 109 b ” wherever appearing the words “, 109b or 109d”.
Amendment of section 140a
Section 140a of the principal Act is amended— (a) in the shoulder note, by deleting the words “and disallowance of interest”; (b) in subsection (2), by substituting for the words “subsections (3) and (4)” the words “subsection (3)”; (c) by deleting subsection (4); and (d) in subsection (5)— (i) by substituting for the words “or the financial assistance referred to in subsection (2) or (4) respectively,” the words “referred to in subsection (2)”; and (ii) by deleting the words “or financial assistance”.
Amendment of Schedule 1
Paragraph 1 of Part 1 of Schedule 1 to the principal Act is amended in the column “Rates of Income Tax”— (a) by substituting for the words “5 per cent” the words “3 per cent”; (b) by substituting for the words “10 per cent” the words “8 per cent”; and (c) by substituting for the words “16 per cent” the words “14 per cent”.
Amendment of Schedule 3
Schedule 3 to the principal Act is amended by substituting for subparagraph 61a(5) the following subparagraph: “(5) Where paragraph (4) applies, in determining the residual expenditure of such asset for that following basis period, the total qualifying expenditure incurred by that person shall be reduced by— (a) any initial allowance made to that person in relation to that asset for any year of assessment; (b) any annual allowance made to that person in relation to that asset for any year of assessment; and (c) an amount of annual allowance which would have been made to that person for the basis period in which the asset was classified as held for sale as if the asset had been in use in that basis period for the purpose of a business of his.”.
Amendment of Schedule 6
Schedule 6 to the principal Act is amended in subparagraph 22(b), by deleting the words “(that is to say, any professional entertainer, artiste, athlete or other individual who entertains whether in public or private for profit on stage, radio or television, at a stadium or sports ground, or otherwise)”.
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).