Commencement of amendments to the Income Tax Act 1967
(1) Subparagraphs 4(a)(i), (ii) and (iii), paragraphs 4(b), 16(a), (b) and (d) and sections 5, 12, 13 and 17 have effect for the year of assessment 2023 and subsequent years of assessment.
(2) Subparagraph 4(a)(iv) has effect for the year of assessment 2024.
(3) Sections 6, 7, 8, 9 and 10 and paragraphs 16(c), (e) and (f) have effect for the year of assessment 2024 and subsequent years of assessment.
(4) Sections 11, 14 and 15 are deemed to have come into operation on 1 January 2023.
Amendment of section 46
The Income Tax Act 1967, which is referred to as the “principal Act” in this Chapter, is amended in section 46—
(a) in subsection (1)—
(i) in paragraph (b) of the proviso to paragraph (g), by substituting for the words “eight thousand ringgit” the words “ten thousand ringgit”;
(ii) in the proviso to paragraph (h), by substituting for the words “eight thousand ringgit” the words “ten thousand ringgit”;
(iii) by inserting after paragraph (h) the following paragraph:
“(ha) an amount limited to a maximum of four thousand ringgit expended or deemed expended under subsection (3) in that basis year by that individual on his child
who at any time in that basis year is of the age of eighteen years and below, in respect of—
(i) assessment for the purpose of diagnosis of learning disability certified by a medical practitioner registered with the Malaysian Medical Council; or
(ii) early intervention programme or rehabilitation treatment for learning disability conducted by an allied health practitioner in the field of learning disability registered under the Allied Health Professions Act 2016:
Provided that—
(a) the claim is evidenced by a receipt and certification issued by the medical practitioner that the assessment for the purpose of diagnosis was provided to the child and that the child is diagnosed with learning disability;
(b) the claim is evidenced by a receipt and certification issued by the allied health practitioner that the early intervention programme or rehabilitation treatment was provided to the child;
(c) the assessment for the purpose of diagnosis, early intervention programme or rehabilitation treatment which qualifies for deduction is for the following learning disabilities:
(i) autism spectrum disorder;
(ii) a t t e n t i o n d e f i c i t hyperactivity disorder;
(iii) global developmental delay;
(iv) intellectual disability;
(v) down syndrome; and
(vi) s p e c i f i c l e a r n i n g disability;
(d) the assessment for the purpose of diagnosis, early intervention programme and rehabilitation treatment are provided in Malaysia;
(e) t h e m a x i m u m a m o u n t of deduction under this paragraph shall apply notwithstanding that that individual may have more than one child; and
(f) the deduction under this paragraph shall be part of the amount limited to a maximum of ten thousand ringgit in paragraph (g);”; and
(iv) in paragraph (c) of the proviso to paragraph (r), by substituting for the words “until 2023” the words “until 2024”; and
(b) in subsection (3), by inserting after the words “(h),” the words “(ha),”.
Amendment of section 49
Section 49 of the principal Act is amended—
(a) in subsection (1)—
(i) in paragraph (a), by inserting after the words “any insurance” the words “or any voluntary contribution made by that individual to the Employees Provident Fund or for both”; and
(ii) in paragraph (b), by inserting after the words “in respect of” the words “any voluntary or obligatory”;
(b) in subsection (1a)—
(i) by inserting after paragraph (a) the following paragraph:
“(aa) the total amount of deduction for voluntary contribution to the Employees Provident Fund under paragraph (1)(a) shall not include the amount of deduction for voluntary contribution to the Employees Provident Fund under paragraph (1)(b) made by an individual who is an employee or a self-employed person within the meaning of the Employees Provident Fund Act 1991, or a pensionable officer within the meaning of section 2 of the Pensions Act 1980;”;
(ii) in paragraph (b), by substituting for the semi colon at the end of the paragraph a full stop; and
(iii) by deleting paragraph (c); and
(c) in subsection (2)—
(i) by inserting after the words “other than voluntary contributions” the words “to the Employees Provident Fund”; and
(ii) by substituting for the words “a self-employed person within the meaning of the Employees Provident Fund Act 1991 or a pensionable officer within the meaning of section 2 of the Pensions Act 1980” the words “any individual”.
Amendment of section 77
Section 77 of the principal Act is amended by inserting after subsection (1a) the following subsection:
“(1b) For the purposes of this section, the person referred to in subsection (1) shall furnish to the Director General a return in the prescribed form on an electronic medium or by way of electronic transmission in accordance with section 152a.”.
Amendment of section 77a
Subsection 77 a (1 a ) of the principal Act is amended by substituting for the words “a company and a limited liability partnership” the words “a company, limited liability partnership, trust body and co-operative society”.
Amendment of section 77b
Section 77b of the principal Act is amended by inserting after subsection (1) the following subsection:
“(1 a ) For the purposes of this section, a person who is a company, limited liability partnership, trust body and co-operative society shall furnish to the Director General an amended return in the prescribed form on an electronic medium or by way of electronic transmission in accordance with section 152a.”.
Amendment of section 83
Subsection 83(1b) of the principal Act is amended by inserting after the words “a company,” the words “limited liability partnership, trust body or co-operative society,”.
Amendment of section 86
Section 86 of the principal Act is amended by inserting after subsection (1) the following subsection:
“(1a) For the purposes of this section, the person referred to in paragraphs (1)(a) and (b) shall furnish to the Director General a return in the prescribed form on an electronic medium or by way of electronic transmission in accordance with section 152a.”.
Amendment of section 97a
Subparagraph 97a(5)(b)(iii) of the principal Act is amended by inserting after the words “subsection 107a(2)” the words “, 107d(3)”.
Amendment of section 103
Section 103 of the principal Act is amended—
(a) in subsection (3), by substituting for the word “Where” the words “Subject to subsection (7), where”; and
(b) in subsection (7), by substituting for the words “subsection (2)” the words “subsection (1), (1a) or (2)”.
Amendment of section 107b
Subsection 107b(2) of the principal Act is amended in the proviso by substituting for the words “not later than the thirtieth day of June” the words “once not later than the thirtieth day of June or once not later than the thirty first day of October, or both”.
Amendment of section 107d
Subsection 107d(1) of the principal Act is amended—
(a) by inserting after the words “the payer shall upon paying or crediting such payments” the words “in a calendar month”;
(b) by inserting after the words “two per cent of the payments on account of tax” the words “for that year of assessment”;
(c) by deleting the words “for any year of assessment”; and
(d) by substituting for the words “within thirty days” the words “not later than the end of the following calendar month”.
Amendment of section 131a
Paragraph 131a(1)(c) of the principal Act is amended by inserting after the words “107a(2)” the words “, 107d(3)”.
Amendment of Schedule 1
Schedule 1 to the principal Act is amended in Part I—
(a) in paragraph 1, by substituting for the chargeable income and rates of income tax the following chargeable income and rates of income tax:
“Chargeable income RM Rate of income tax
For every ringgit of the first 5,000 0 per cent For every ringgit of the next 15,000 1 per cent For every ringgit of the next 15,000 3 per cent For every ringgit of the next 15,000 6 per cent For every ringgit of the next 20,000 11 per cent For every ringgit of the next 30,000 19 per cent
For every ringgit of the next 300,000 25 per cent For every ringgit of the next 200,000 26 per cent For every ringgit of the next 1,400,000 28 per cent For every ringgit exceeding 2,000,000 30 per cent”;
(b) in paragraph 2a, by substituting for the chargeable income and rates of income tax the following chargeable income and rates of income tax:
“Chargeable income RM Rate of income tax
For every ringgit of the first 150,000 15 per cent For every ringgit of the next 450,000 17 per cent For every ringgit exceeding 600,000 24 per cent”;
(c) in paragraph 2b—
(i) in subparagraph (b), by deleting the word “or” at the end of the subparagraph;
(ii) in subparagraph (c), by substituting for the full stop at the end of the subparagraph the words “; or”; and
(iii) by inserting after subparagraph (c) the following subparagraph:
“(d) twenty per cent of the paid-up capital in respect of ordinary shares of the company at the beginning of the basis period for a year of assessment is directly or indirectly owned by one or more companies incorporated outside Malaysia or by one or more individuals who are not citizens of Malaysia.”;
(d) in paragraph 2d, by substituting for the chargeable income and rates of income tax the following chargeable income and rates of income tax:
“Chargeable income RM Rate of income tax
For every ringgit of the first 150,000 15 per cent For every ringgit of the next 450,000 17 per cent For every ringgit exceeding 600,000 24 per cent”;
(e) in paragraph 2e—
(i) in subparagraph (b), by deleting the word “or” at the end of the subparagraph;
(ii) in subparagraph (c), by substituting for the full stop at the end of the subparagraph the words “; or”; and
(iii) by inserting after subparagraph (c) the following subparagraph:
“(d) twenty per cent of the capital contribution (whether in cash or in kind) of the limited liability partnership at the beginning of the basis period for a year of assessment is directly or indirectly contributed by one or more companies incorporated outside Malaysia or by one or more individuals who are not citizens of Malaysia.”; and
(f) in paragraph 2 f , by inserting after the words “subparagraph 2e(c)” the words “and the company or companies incorporated outside Malaysia referred to in subparagraph 2e(d)”.
Amendment of Schedule 3
Schedule 3 to the principal Act is amended—
(a) by renumbering the existing paragraph 70 a as subparagraph 70a(1);
(b) in subparagraph 70a(1) as renumbered, by deleting the words “, an intangible asset,”; and
(c) by inserting after subparagraph 70a(1) as renumbered the following subparagraph:
“(2) Notwithstanding subparagraph (1), the Minister may prescribe any other assets as assets which are excluded from the definition of “plant”.”.
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).
