This Act may be cited as the Finance (No. 2) Act 2023.
Act 851
Finance (No. 2) Act 2023
Akta kewangan (no. 2) 2023
Some sections could not be extracted from the official PDF, so this text may be incomplete.
An Act to amend the Income Tax Act 1967, the Real Property Gains Tax Act 1976, the Stamp Act 1949, the Petroleum (Income Tax) Act 1967, the Labuan Business Activity Tax Act 1990, the Entertainments Duty Act 1953, the Customs Act 1967, the Excise Act 1976, the Goods Vehicle Levy Act 1983, the Windfall Profit Levy Act 1998, the Tourism Tax Act 2017, the Sales Tax Act 2018, the Service Tax Act 2018 and the Departure Levy Act 2019.
Data synced
Chapter I — PRELIMINARY
The Income Tax Act 1967 [Act 53], the Real Property Gains Tax Act 1976 [Act 169], the Stamp Act 1949 [Act 378], the Petroleum (Income Tax) Act 1967 [Act 543], the Labuan Business Activity Tax
Act 1990 [Act 445], the Entertainments Duty Act 1953 [Act 103], the Customs Act 1967 [Act 235], the Excise Act 1976 [Act 176], the Goods Vehicle Levy Act 1983 [Act 294], the Windfall Profit Levy Act 1998 [Act 592], the Tourism Tax Act 2017 [Act 791], the Sales Tax Act 2018 [Act 806], the Service Tax Act 2018 [Act 807] and the Departure Levy Act 2019 [Act 813] are amended in the manner specified in Chapters II, III, IV, V, VI, VII, VIII, IX, X, XI, XII, XIII, XIV and XV respectively.
Chapter II — AMENDMENTS TO THE INCOME TAX ACT 1967
(1) Paragraphs 4(a), (b) and (d), 17(b), 22(c), 24(b) and 33(b), and sections 5, 6, 7, 8, 11, 12, 13, 14, 18, 19, 20, 21, 23, 25, 26, 27 and 31 come into operation on 1 January 2024.
(2) Sections 15 and 16, and paragraph 24(a) in relation to section 82c of the Income Tax Act 1967 come into operation on 1 January 2024.
(3) Paragraph 17(c) in relation to subsections 83(2), (3) and (4) of the Income Tax Act 1967 comes into operation on 1 January 2024.
(4) Paragraphs 4(c), 10(a), (c), (d), and (e), 22(a) and (b) and 33(a), sections 9, 32 and 34 have effect for the year of assessment 2024 and subsequent years of assessment.
(5) Paragraph 10(b) has effect from the year of assessment 2024 until the year of assessment 2026.
(6) Paragraph 10(f) has effect from the year of assessment 2024 until the year of assessment 2027.
(7) Paragraphs 17(a) and (c) in relation to subsection 83(1) of the Income Tax Act 1967 have effect for the year ending 31 December 2023 and subsequent years.
(8) Paragraph 24(a) and section 16 in relation to section 82b of the Income Tax Act 1967 have effect for the year of assessment 2025 and subsequent years of assessment.
(9) Section 28 comes into operation on the coming into operation of this Act.
(10) Section 29 comes into operation on 1 January 2025.
(11) Section 30 in relation to—
(a) sections 157 to 197 in new Part XI of the Income Tax Act 1967 have effect for the Financial Year beginning on or after 1 January 2025 and subsequent Financial Years; and
(b) sections 198 to 239 in new Part XI of the Income Tax Act 1967 come into operation on 1 January 2025.
The Income Tax Act 1967, which is referred to as the “principal Act” in this Chapter, is amended in subsection 2(1)—
(a) by inserting after the definition of “business trust” the following definition:
‘ “capital asset” means movable or immovable property including any rights or interests thereof;’;
(b) by inserting after the definition of “Director General” the following definition:
‘ “electronic invoice” means an invoice or any document approved by the Director General, issued by a person in respect of goods sold or services performed as provided under section 82c;’;
(c) in the definition of “foreign tax”, by inserting after the word “Malaysia” the words “in which the same income arose”; and
(d) by inserting after the definition of “statutory order” the following definition:
‘ “stock exchange” has the meaning assigned to it in the Capital Markets and Services Act 2007;’.
Section 4 of the principal Act is amended by inserting after paragraph (a) the following paragraph:
“(aa) gains or profits from the disposal of capital asset;”.
The principal Act is amended by substituting for section 4b the following section:
“Non-business income
4 b . For the purposes of section 4, gains or profit from a business shall not include—
(a) any interest that first becomes receivable by a person in the basis period for a year of assessment other than interest where subsection 24(5) applies; and
(b) gains or profits from the disposal of capital asset other than gains or profits where subsection 24(1) applies.”.
Subsection 6(1) of the principal Act is amended—
(a) in paragraph (p), by substituting for the full stop at the end of the paragraph a semi colon; and
(b) by inserting after paragraph (p) the following paragraph:
“(q) income tax shall be charged upon the chargeable income of a company, limited liability partnership, trust body or co-operative society from each disposal of capital asset in the basis period for a year of assessment at the appropriate rate as specified under Part XXI of Schedule 1.”.
The principal Act is amended by inserting after section 15b the following section:
“Derivation of gains or profits from the disposal of capital assets deriving value from real property in Malaysia
Section 82 of the principal Act is amended by inserting after subsection (2) the following subsections:
“(2 a ) Where a person issues an electronic invoice in respect of goods sold or services performed under section 82c, the issuance of receipts pursuant to paragraph (1)(b) may be dispensed with.
(2b) Notwithstanding paragraph (1)(b) and subsection (2a), where a person is required to submit to the Director General a consolidated transaction invoice as provided under subsection 82c(7), that person shall issue a printed receipt for every sum received in that year of assessment in respect of goods sold or services performed.”.
(1) Subject to subsection (2), gains or profits accruing to a person in a year of assessment on the disposal of capital asset which is a share of a controlled company (hereinafter referred to as the “relevant company”) incorporated outside Malaysia shall be deemed to be derived from Malaysia where the relevant company owns real property situated in Malaysia or shares of another controlled company or both.
(2) Subsection (1) shall apply where at the date of acquisition of the shares of the relevant company—
(a) the defined value of the real property situated in Malaysia (including any right or interest thereof) owned by the relevant company is not less than seventy-five per cent of the value of its total tangible asset;
(b) the defined value of shares of another controlled company owned by the relevant company is not less than seventy-five per cent of the value of its total tangible asset:
Provided that the defined value of the real property situated in Malaysia (including any right or interest thereof) owned by another controlled company, is not less than seventy-five per cent of the value of its total tangible asset; or
(c) the defined value of real property situated in Malaysia and shares of another controlled company referred to in paragraphs (a) and (b) owned by the relevant company is not less than seventy-five per cent of the value of its total tangible asset: Provided that subsection (1) shall continue to apply notwithstanding that at the time of disposal of shares of the relevant company the defined value referred to in paragraph (a), (b) or (c) is less than seventy-five per cent of the value of its total tangible asset.
(3) The shares of the relevant company in this section shall be deemed to be acquired—
(a) on the date the defined value of real property or shares or both owned by the relevant company is in accordance with subsection (2); or
(b) on the date of acquisition of the shares of the relevant company.
(4) For the purposes of this section, the acquisition price of shares of the relevant company shall—
(a) where paragraph (3)(a) applies, be deemed to be equal to a sum determined in accordance with the formula: A x C B where A is the number of shares of the relevant company referred to in subsection (1);
B is the total number of issued shares in the relevant company at the date of acquisition of the shares of the relevant company referred to in subsection (1); and
C is the defined value of the real property or shares or both owned by the relevant company at the date of acquisition of the shares of the relevant company referred to in subsection (1);
(b) where paragraph (3)(b) applies, be determined in accordance with paragraph 65e(2)(b) or subsection 65e(8).
(5) For the purposes of this section—
“defined value” means the market value of real property or the acquisition price of shares of another controlled company as determined under subsection (2);
“value of its total tangible assets” means the aggregate of the defined value of real property (including any right or interest thereof) or shares of another controlled company or both and the value of other tangible assets.”.
Amendment of section 44
9. Subsection 44(7a) of the principal Act is amended by substituting for the words “twenty-five per cent” the words “thirty-five per cent”.
Amendment of section 46
10. Subsection 46(1) of the principal Act is amended—
(a) by substituting for paragraph (c) the following paragraph:
“(c) an amount limited to a maximum of eight thousand ringgit in respect of medical treatment, dental treatment, complete medical examination, special needs or carer expenses expended in that basis year by that individual for his parents and the claim is evidenced by certification of a medical practitioner or dental practitioner that the conditions of the parents require medical treatment, dental treatment, complete medical examination, special needs or carer and—
(i) in the case of medical treatment, dental treatment, complete medical examination or special needs, a receipt on the amount expended; or
(ii) in the case of carer, a written certification or receipt from, or work permit of, the carer:
Provided that for the purposes of this paragraph—
(a) “carer” shall not include that individual, his wife or her husband or the child of the individual;
(b) “parents” shall be individuals resident in Malaysia;
(c) the medical treatment, dental treatment, complete medical examination or care services are provided in Malaysia;
(d) the medical practitioner or dental practitioner is registered with the Malaysian Medical Council or Malaysian Dental Council, respectively; and
(e) the deduction for the complete medical examination shall be subject to a maximum amount of one thousand ringgit;”;
(b) in subparagraph (f)(iii), by substituting for the words “2022 and 2023” the words “2023, 2024, 2025 and 2026”;
(c) in paragraph (g)—
(i) in subparagraph (ii), by deleting the word “or” at the end of the subparagraph;
(ii) in subparagraph (iii), by substituting for the colon at the end of the subparagraph the words “; or”;
(iii) by inserting after subparagraph (iii) the following subparagraph:
“(iv) on himself, his wife or child for dental examination or treatment, or in the case of a wife on herself, her husband or child for dental examination or treatment, an amount limited to a maximum of one thousand ringgit:”; and
(iv) in the proviso to paragraph (g), by substituting for paragraph (a) the following paragraph:
“(a) the claim, in respect of—
(i) serious disease treatment provided to that individual, spouse or child, or the fertility treatment provided to that individual or the spouse, is evidenced by a receipt and certification issued by a medical practitioner registered with the Malaysian Medical Council; or
(ii) dental examination or treatment provided to that individual, spouse or child, is evidenced by a receipt and certification issued by a dental practitioner registered with the Malaysian Dental Council;”;
(d) in paragraph (p)—
(i) by deleting subparagraph (iii);
(ii) in subparagraph (iv), by substituting for the comma at the end of the subparagraph the words “; and”; and
(iii) by inserting after subparagraph (iv) the following subparagraph:
“(v) for the payment of any course of study undertaken other than the course of study falling under subparagraph 46(1)(f)(iii) for the purpose of upskilling or self-enhancement,”;
(e) by substituting for paragraph (u) the following paragraph:
“(u) an amount limited to a maximum of one thousand ringgit expended or deemed expended under subsection (3) in that basis year by that individual—
(i) for the purchase of sports equipment for any sports activity as defined under the Sports Development Act 1997 [Act 576] (excluding motorized two-wheel bicycles);
(ii) for the payment of rental or entrance fee to any sports facility;
(iii) for the payment of registration fee for any sports competition where the organizer is approved and licensed by the Commissioner of Sports under the Sports Development Act 1997; and
(iv) for the payment of fees for gym membership or sports training for carrying out any sports activity as defined under the Sports Development Act 1997 which is provided by a sports club or societies registered with the Commissioner of Sports or companies incorporated under the Companies Act 2016 [Act 777],
for his own use or under his name or for the use of or under the name of his wife or child, or in the case of a wife, for her own use or under her name or for the use of or under the name of her husband or child as evidenced by receipts issued in respect of the purchase or payment, as the case may be; and”; and
(f) in paragraph (v), by substituting for the words “2022 and 2023” the words “2023, 2024, 2025, 2026 and 2027”.
Amendment of section 61
11. Paragraph 61(1)(b) of the principal Act is amended by substituting for the proviso the following provisos:
“Provided that in the case of a unit trust, gains arising from the realization of investments shall be treated as income of the trust body of the trust under paragraph 4(aa):
Provided further that where such realization of investments relates to real property as defined in the Real Property Gains Tax Act 1976, the gains shall not be treated as income of the trust body of the trust;”.
New Chapter 9
12. Part III of the principal Act is amended by inserting after Chapter 8 the following chapter:
“Chapter 9 Gains or profits from the disposal of capital asset
Interpretation of Chapter 9
65c. In this Chapter, unless the context otherwise requires—
“consideration” means consideration in money or money’s worth;
“disposal” means to sell, convey, transfer, assign, settle or alienate whether by agreement or by force of law and includes a reduction of share capital and purchase by a company of its own shares;
“shares” means all or any of the following:
(a) stock and shares in a company;
(b) loan stock and debentures issued by a company or any other corporate body incorporated in Malaysia;
(c) a member’s interest in a company not limited by shares whether or not it has a share capital;
(d) any option or other right in, over or relating to shares as defined in paragraphs (a) to (c).
Application of Chapter 9
65 d . (1) This Chapter shall apply for ascertaining the chargeable income of a company, limited liability partnership, trust body or co-operative society which receives gains or profits from the disposal of capital asset on or after 1 January 2024.
(2) In a case where any provision of this Chapter applies, the foregoing Chapters shall also apply but shall be modified in their application to the extent necessary to conform with that provision; and, if in that case there is any inconsistency between that provision and any provision of the foregoing Chapters, that provision of those Chapters shall be void to the extent of the inconsistency.
Gains or profits from the disposal of capital asset
65e. (1) For the purposes of this Act and subject to this section, the gains or profits from the disposal of capital asset in the basis period for a year of assessment shall be—
(a) ascertained by reference to each disposal separately; and
(b) treated as a separate source of gains or profits, from the disposal of capital asset for that year of assessment.
(2) Subject to this section, the adjusted income of a company, limited liability partnership, trust body or co-operative society from a source consisting of gains or profits from the disposal of capital asset, for the basis period for a year of assessment (in this section referred to as “relevant year”) shall be ascertained by—
(a) taking the amount or value of the consideration for the disposal of the capital asset at the time of disposal reduced by—
(i) the amount of any expenditure wholly and exclusively incurred on the capital asset at any time after its acquisition by or on behalf of the company, limited liability partnership, trust body or co-operative society making
the disposal for the purpose of enhancing or preserving the value of the capital asset, being expenditure reflected in the state or nature of the capital asset at the time of the disposal;
(ii) the amount of any expenditure wholly and exclusively incurred at any time after the acquisition of the capital asset by the company, limited liability partnership, trust body or co-operative society in establishing, preserving or defending its title to, or to a right over, the capital asset; and
(iii) the incidental costs to the company, limited liability partnership, trust body or co-operative society of making the disposal; and
(b) thereafter, by deducting therefrom the amount or value of the consideration for the acquisition of the capital asset (together with the incidental costs to the company, limited liability partnership, trust body or co-operative society of the acquisition) less—
(i) any sum received by the company, limited liability partnership, trust body or co-operative society by way of compensation for any kind of damage or injury to the asset or for the destruction or dissipation of the asset or for any depreciation or risk of depreciation of the asset;
(ii) any sum received by the company, limited liability partnership, trust body or co-operative society under a policy of insurance for any kind of damage or injury to or the loss, destruction or depreciation of the asset; and
(iii) any sum forfeited to the company, limited liability partnership, trust body or co-operative society as a deposit made in connection with an intended transfer of the capital asset.
(3) Subsection (2) shall not apply in ascertaining the chargeable income of a company, limited liability partnership, trust body or co-operative society from the gains or profits from the disposal of capital assets where the company, limited liability partnership, trust body or co-operative society has elected for tax payable to be charged at the rate of two per cent of gross disposal price from the disposal of the capital asset.
(4) Where—
(a) the amount ascertained under paragraph (2)(a) exceeds the amount ascertained under paragraph (2)(b), there is an adjusted income; and
(b) the amount ascertained under paragraph (2)(a) is less than the amount ascertained under paragraph (2)(b), there is an adjusted loss.
(5) The amount of adjusted loss of a company, limited liability partnership, trust body or co-operative society as ascertained in accordance with paragraph (4)(b) shall be allowed only as a deduction to reduce the adjusted income of a company, limited liability partnership, trust body or co-operative society in the subsequent disposal of capital asset in the same basis period for a year of assessment in which the disposal was made.
(6) Where by reason of an insufficiency or absence of adjusted income in subsequent disposal of capital asset in the same basis period for a year of assessment in which the adjusted loss arose, effect cannot be given or cannot be given in full to subsection (5), the amount of adjusted loss which has not been so allowed (or so much thereof as has not been so allowed for that year) shall be allowed as a deduction to reduce the adjusted income of a company, limited liability partnership, trust body or co-operative society from the disposal of capital asset for a period of ten consecutive years of assessment and that period commences immediately following the relevant year of assessment and any amount or balance of the amount which is not deductible at the end of that period shall be disregarded for the purposes of this Act.
(7) The amount of adjusted income of a company, limited liability partnership, trust body or co-operative society as ascertained in accordance with the foregoing subsections shall be treated as the chargeable income of the company, limited liability partnership, trust body or co-operative society from the source of gains or profits from the disposal of capital asset for a year of assessment.
(8) Notwithstanding subsection (2), the consideration for the acquisition or disposal of a capital asset shall be deemed to be equal to the market value of the capital asset at the time of the disposal—
(a) where a company, limited liability partnership, trust body or co-operative society acquires or disposes of the capital asset otherwise than by way of a bargain made at arm’s length and, in particular, where the company, limited liability partnership, trust body or co-operative society acquires or disposes of it by way of gift;
(b) where a company, limited liability partnership, trust body or co-operative society acquires or disposes of the capital asset wholly or partly for a consideration that cannot be valued;
(c) where a company, limited liability partnership, trust body or co-operative society acquires a capital asset as trustee for the creditors of any person in full or part satisfaction of any debt due from that person or where the company, limited liability partnership, trust body or co-operative society transfers a capital asset as trustee for the creditors of any person to the creditors in full or part satisfaction of any debt due to the creditors;
(d) where a company, limited liability partnership, trust body or co-operative society acquires or disposes of a capital asset in a transaction for the transfer of a business for a lump sum consideration; or
(e) where the disposal of the capital asset is a transaction between connected persons.
(9) For the purposes of paragraph (8)(e)—
(a) a company is connected with another company—
(i) if the same person has control of both, or a person has control of one and persons connected with him (or he and persons connected with him) have control over the other; or
(ii) if two or more groups of persons have control of each company and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person with whom he is connected;
(b) a company is connected with another person if that person has control of it or if that person connected with him together have control of it;
(c) any two or more persons acting together to secure or exercise control of a company shall be treated in relation to that company as connected with one another and with any person acting on the directions of any of them to secure or exercise control of the company.
(10) Any reference in subsection (9) to a person being connected with another shall be taken as meaning that they are connected persons.
(11) Notwithstanding any other provision of this Act, the market value shall be determined by the Director General in the following circumstances where—
(a) the parties to the disposal of a capital asset are unable to agree on its market value;
(b) there is only one party to the disposal of a capital asset; or
(c) the Director General is of the opinion that the market value of a capital asset as agreed on by the parties to its disposal is incorrect.
(12) Sections 33 and 34 shall not apply to gains or profits from disposal of a capital asset.
(13) For the purposes of subsection (2), the incidental costs of the acquisition or disposal of a capital asset shall consist of expenditure wholly and exclusively incurred by the disposer for the purposes of the acquisition or (as the case may be) the disposal, being—
(a) fees, commission or remuneration paid for the professional services of any valuer, accountant, agent or legal adviser;
(b) costs of transfer (including stamp duty);
(c) in the case of an acquisition, the cost of advertising to find a seller; and
(d) in the case of a disposal, the cost of advertising to find a buyer and costs reasonably incurred for the purposes of this Act in making any valuation or in ascertaining market value.
(14) Where an asset is disposed of by being exchanged for another asset (whether chargeable or not) the market value of the asset received by the disposer shall be taken as the consideration for the disposal:
Provided that, if the asset received by the disposer has no market value, the Director General may take the market value of the asset disposed of as the consideration for the disposal.
Disposal and acquisition of capital asset
65 f . (1) Except where this section provides otherwise, a disposal of a capital asset shall be deemed to take place—
(a) where there is a written agreement for the disposal of the capital asset, on the date of such agreement; or
(b) where there is no written agreement, on the date of the completion of the disposal of the capital asset.
(2) Except where this section provides otherwise, where there is a disposal of a capital asset, the date of acquisition of the capital asset by the person which acquires the capital asset (in this section referred to as “acquirer”) shall be deemed to coincide with the date of disposal of that capital asset by the person which disposes the capital asset (in this section referred to as “disposer”) to the acquirer.
(3) For the purposes of this section—
(a) the date of completion of a disposal means—
(i) the date on which the ownership of the capital asset disposed of is transferred by the person who disposes the capital asset; or
(ii) the date on which the whole of the amount or value of the consideration (in money or money’s worth) for the transfer has been received by the person who disposes the capital asset,
whichever is the earlier;
(b) a transfer of ownership of a capital asset is deemed to take place on the date when the last of all such things shall have been done under any written law as are necessary for the transfer of ownership of the capital asset.
(4) Where a contract for the disposal of a capital asset is conditional and the condition is satisfied (by the exercise of a right under an option or otherwise), the acquisition and disposal of the capital asset shall be regarded as taking place at the time the contract was made, unless—
(a) the acquisition or disposal requires the approval by the Government or a State Government, the date of disposal shall be the date of such approval; or
(b) the approval referred to in paragraph (a) is conditional, the date of disposal shall be the date when the last of all such conditions is satisfied.
(5) Where a capital asset is acquired by a company, limited liability partnership, trust body or co-operative society (hereinafter referred to as “the acquirer”) with a financing facility provided by an Islamic bank in accordance with the Syariah, the acquisition price of the capital asset shall be the amount or value of the consideration given by or on behalf of the acquirer to the person disposing that asset other than such Islamic bank or in the case where the capital asset is owned by such bank, the amount or value of the consideration given to the bank, for the acquisition of the capital asset (together with the incidental costs to him of the acquisition) less the sum of the kind referred to in subparagraph 65e(2)(b)(i), (ii) or (iii) received by or forfeited, as the case may be, to that acquirer.
(6) Notwithstanding any other provisions of this Act—
(a) if a capital asset acquired or held by a company, limited liability partnership, trust body or co-operative society is taken into the trading stock of the company, limited liability partnership, trust body or co-operative society, there shall be deemed to be a disposal of the capital asset on the date that capital asset is taken into the trading stock; and
(b) the amount or value of the consideration in money or money’s worth of the capital asset shall be equal to the market value on the date the capital asset is taken into the trading stock.
(7) There is a part disposal of a capital asset where, on a person making a disposal, any description of property derived from the capital asset remains undisposed of.
(8) Subject to other provisions of this Act, where at any time the owner of a capital asset disposes of a part of that capital asset, whenever necessary, the amount or value of consideration for acquisition of the capital asset if the capital asset had been disposed of at that time shall each be apportioned between that part of the capital asset and the remainder thereof on whatever basis is most appropriate, and so much of that price and of those amounts as are so apportioned to the part of the capital asset disposed of shall be taken in applying subsection 65e(2) to the acquisition and disposal of that part.”.
Amendment of section 77a
13. Section 77a of the principal Act is amended by inserting after subsection (1a) the following subsection:
“(1 b ) Notwithstanding subsections (1), (3) and (4), every company, limited liability partnership, trust body or co-operative society who disposes of capital asset shall, within sixty days (or such other period the Director General may allow on a written request being made to him) of the date of disposal of that asset, 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—
(a) specifying the chargeable income and the amount of tax payable (if any) on that chargeable income;
(b) specifying in respect of the capital asset disposed of the acquisition price, the disposal price and the gain or loss on the disposal;
(c) specifying all information necessary to determine the acquisition price and disposal price of the asset disposed of;
(d) where the market value of the asset is to be taken for the purposes of this Act, containing the market value based on a valuation made by a valuer; and
(e) containing such particulars as may be required by the Director General.”.
Amendment of section 77b
14. Section 77b of the principal Act is amended by substituting for the words “subsection 77(1) or 77a(1)” wherever appearing the words “subsection 77(1) or subsection 77a(1) or (1b)”.
The principal Act is amended by inserting after section 82a the following sections:
“Duty to provide information and furnish documents for ascertaining chargeable income and tax payable
82 b . (1) Where a person has furnished to the Director General a return in accordance with section 77 or 77a, that person shall provide information and furnish documents as may be determined by the Director General for the purpose of ascertaining his chargeable income and tax payable on an electronic medium or by way of electronic transmission within thirty days after the due date for furnishing of the return.
(2) For the purposes of subsection (1), the provisions under section 152a other than subsection (3a) shall apply accordingly with any necessary modifications.
Duty to issue electronic invoice
82c. (1) Subject to this section, a person shall, in a year of assessment, issue an electronic invoice for each transaction in respect of any goods sold or services performed by the person for that year of assessment.
(2) For the purposes of subsection (1)—
(a) the Minister shall prescribe the persons who shall issue the electronic invoice and the particulars to be included in the electronic invoice; and
(b) the conditions and specifications under which an electronic invoice is to be issued shall be as determined by the Director General under the guidelines issued in accordance with section 134a.
(3) Any electronic invoice issued by a person in respect of goods sold or services performed under subsection (1) shall be transmitted electronically to and validated by the Director General.
(4) Where for any year of assessment a person is required to issue an invoice under any other written law in respect of goods sold or services performed, the electronic invoice issued in accordance with subsection (1) including any other particulars as may be required shall be construed as an invoice issued under that law provided that where the particulars of electronic invoice are inconsistent with the requirements for the issuance of invoice under that law, the electronic invoice shall only be valid and enforceable for the purposes of this Act.
(5) Where for any year of assessment an electronic invoice is issued in accordance with subsection (1), the Director General shall not be liable for any loss or damage suffered by any person due to any error or omission arising, appearing in an electronic invoice provided that the error or omission
was made in good faith and in the ordinary course of the discharge of the duties of the Director General or occurred or arose as a result of any defect or breakdown in the service or in the equipment used for the issuance of the electronic invoice.
(6) Subject to the conditions as may be determined by the Director General, where for any year of assessment a person acquires any goods sold or enjoys any services performed, the person shall for that year of assessment issue a self-billed invoice in accordance with the conditions as may be imposed by the Director General and the invoice shall be treated as an electronic invoice.
(7) The Director General may for any year of assessment in respect of any goods sold or services performed, determine a person to consolidate the number of transactions in respect of such goods sold or services performed in that year of assessment into a consolidated transaction invoice, and that person shall transmit the consolidated transaction invoice to the Director General within a specified time and in accordance with the conditions as determined by the Director General and such consolidated transaction invoice shall for the purposes of this section constitute an electronic invoice issued by that person.
(8) Where for any year of assessment a person makes an error or mistake in respect of any electronic invoice issued in accordance with this section, the person may for the purpose of rectifying the error or mistake issue a substitute electronic invoice within three days from the date of issuance of the defective electronic invoice.
(9) Where for any year of assessment any goods sold or services performed by a person involves the issuance of credit note or debit note, the person issuing the credit note or debit note shall make adjustments in ascertaining his chargeable income for that year of assessment accordingly.
(10) A person may, in respect of any goods sold or services performed by him in any year of assessment, add any additional particulars to the electronic invoice under this section.
(11) The provisions of the Personal Data Protection Act 2010 [Act 709] shall not apply to any personal data processed for electronic invoice issued or transmitted to the Director General under this section and any other related provisions of this Act.”.
Section 83 of the principal Act is amended—
(a) by deleting subsection (1b);
(b) in the second paragraph of the proviso to subsection (3)—
(i) in paragraph (b), by substituting for the comma at the end of the paragraph a full stop; and
(ii) by deleting the words “and where it is known to him that the individual is not retiring from any employment.”; and
(c) by inserting after subsection (4) the following subsection:
“(4a) The return referred to in subsection (1) and the notice referred to in subsections (2), (3) and (4) shall be furnished to the Director General on an electronic medium or by way of electronic transmission in accordance with section 152a.”.
Paragraph 96 a (1)(a) of the principal Act is amended by substituting for the words “subsection 77(1) or 77a(1)” the words “subsection 77(1) or subsection 77a(1) or (1b)”.
Section 97a of the principal Act is amended by substituting for the words “subsection 77(1) or 77a(1)” wherever appearing the words “subsection 77(1) or subsection 77a(1) or (1b)”.
Subsection 99(1a) of the principal Act is amended by substituting for the words “subsection 77a(1)” the words “subsection 77a(1) or (1b)”.
Subsection 103(12) of the principal Act is amended—
(a) in paragraph (a), by inserting after the words “limited liability partnership” the words “referred to in subsection 77a(1),”; and
(b) by inserting after paragraph (a) the following paragraph:
“(aa) in the case of a company, limited liability partnership, trust body or co-operative society referred to in subsection 77a(1b), sixty days from the date of disposal of a capital asset;”.
Section 107c of the principal Act is amended—
(a) in subsection (4b)—
(i) in paragraph (b), by deleting the word “or” at the end of the paragraph;
(ii) in paragraph (c), by substituting for the full stop at the end of the paragraph the words “; or”; and
(iii) by inserting after paragraph (c) the following paragraph:
“(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.”;
(b) in subsection (7), by substituting for the words “the sixth month or the ninth month, or in both months” the words “the sixth month, the ninth month or the eleventh month, or in all three months”; and
(c) by inserting after subsection (11b) the following subsection:
“(11 c ) This section shall not apply to gains or profits from the disposal of a capital asset.”.
Section 112 of the principal Act is amended by substituting for the words “subsection 77(1) or 77a(1)” wherever appearing the words “subsection 77(1) or subsection 77a(1) or (1b)”.
Subsection 120(1) of the principal Act is amended—
(a) by substituting for paragraph (d) the following paragraph:
“(d) contravenes section 82b or 89, or subsection 82c(1), 82c(6), 82c(7), 84(2), 86(1), 106a(2) or 153(1)”; and
(b) in paragraph (h), by substituting for the words “paragraph 77(4)(b) or 77a(3)(b)” the words “paragraph 77(4)(b) or subsection 77a(1b) or paragraph 77a(3)(b)”.
Subsection 131 a (1) of the principal Act is amended by substituting for the words “subsection 77(1) or 77a(1)” wherever appearing the words “subsection 77(1) or subsection 77 a (1) or (1b)”.
The principal Act is amended by inserting after section 134 the following section:
“Power of Director General to issue guidelines
134a. (1) The Director General may issue guidelines as the Director General thinks expedient or necessary to clarify the provisions of this Act or to facilitate the compliance of the law or any other matter relating to this Act.
(2) The Director General may revoke, revise or amend the whole or any part of any guidelines issued under this section.”.
Section 138 of the principal Act is amended—
(a) in subsection (4), by inserting after paragraph (a) the following paragraph:
“(aa) the production or disclosure of classified material in relation to electronic invoice to the Director General of Customs and Excise (or to the public officers under his direction and control) or the use of classified material in relation to electronic invoice by the Director General of Customs and Excise, to such an extent as is necessary or expedient for the exercise of his functions;”; and
(b) in subsection (5), in the definition of “classified person”—
(i) in paragraph (c), by deleting the word “or” at the end of the paragraph;
(ii) in paragraph (d), by inserting after the word “Malaysia;” the word “or”; and
(iii) by inserting after paragraph (d) the following paragraph:
“(e) any person who, for any reason, has by any means access to any information on an electronic invoice under this Act.”.
Section 152a of the principal Act is amended by inserting after subsection (3) the following subsection:
“(3a) For the purposes of subsection (1), a person referred to under subsection 75(1) may authorize in writing an employee to furnish on his behalf any form prescribed under this Act in the manner provided for in subsection (1).”.
Subsection 154(1) of the principal Act is amended by inserting after paragraph (ed) the following paragraph:
“(ee) implementing and facilitating the operation of Part XI;”.
The principal Act is amended by inserting after Part X the following part:
“Part XI
Part XI
Chapter 19 — Supplemental
Schedule 1 to the principal Act is amended by inserting after Part XX the following part:
“Part XXI Notwithstanding Part I, income tax shall be charged for a year of assessment on the income of a company, limited liability partnership, trust body or co-operative society from the disposal of capital asset referred to in paragraph 4(aa) at the following rates:
(a) in relation to a disposal of capital asset situated in Malaysia which was acquired before 1 January 2024—
(i) at the rate of 10 per cent on every ringgit of the chargeable income from the disposal of the capital asset; or
(ii) at the rate of 2 per cent of gross on the disposal price of the capital asset;
(b) in relation to a disposal of capital asset situated in Malaysia which was acquired on or after 1 January 2024 at the rate of 10 per cent on every ringgit of the chargeable income from the disposal of the capital asset;
(c) in relation to a disposal of capital asset other than a disposal under paragraphs (a) and (b), at the applicable rate to the company, limited liability partnership, trust body or co-operative society as specified under Part I or IV on every ringgit of the chargeable income from the disposal of the capital asset.”.
Subparagraph 19a(4) of Schedule 3 to the principal Act is amended—
(a) in subsubparagraph (b), by deleting the word “or” at the end of the subsubparagraph;
(b) in subsubparagraph (c), by substituting for the full stop at the end of the subsubparagraph the words “; or”; and
(c) by inserting after subsubparagraph (c) the following subsubparagraph:
“(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.”.
Schedule 6 to the principal Act is amended—
(a) in subsubparagraph 13(1)(a), by substituting for the words “so long as the approval remains in force” the words “in the basis period for a year of assessment so long as the institution, organization or fund complies with the conditions of the approval in that basis period for that year of assessment”; and
(b) by inserting after paragraph 37 the following paragraph:
“38. (1) Gains or profits from the disposal of a capital asset situated in Malaysia.
(2) The exemption under subparagraph (1) shall not apply to—
(a) disposal of shares of a company incorporated in Malaysia not listed on the stock exchange; and
(b) disposal of shares under section 15c.”.
Paragraph 16 of Schedule 7 to the principal Act is amended by substituting for the definition of “foreign income” the following definition:
‘ “foreign income” means, in relation to—
(a) unilateral credit, income derived from outside Malaysia charged to foreign tax;
(b) bilateral credit, income derived from outside Malaysia and from Malaysia, charged to foreign tax.’.
Chapter III — AMENDMENTS TO THE REAL PROPERTY GAINS TAX ACT 1976
(1) Sections 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48 and 49 come into operation on 1 January 2025.
(2) Section 50 comes into operation on 1 January 2024.
The Real Property Gains Tax Act 1976, which is referred to as the “principal Act” in this Chapter, is amended in subsection 2(1)—
(a) by inserting after the definition of “business” the following definition:
‘ “business trust” has the meaning assigned to it in the Capital Markets and Services Act 2007 [Act 671];’; and
(b) in the definition of “company”, by inserting after the word “Malaysia” the words “and a business trust”.
Section 13 of the principal Act is amended in subsection (1)—
(a) in paragraph (b), by deleting the word “and” at the end of the paragraph;
(b) in paragraph (c), by substituting for the words “submit a written valuation of the asset by a valuer.” the words “containing the market value of the asset based on a valuation made by a valuer;”; and
(c) by inserting after paragraph (c) the following paragraphs:
“(d) specifying the chargeable gain and the amount of tax payable (if any) on that chargeable gain for that disposal; and
(e) containing such particulars as may be required by the Director General.”.
The principal Act is amended by inserting after section 13 the following section:
“Amendment of return
13a. (1) Where for a year of assessment a person has furnished a return in accordance with section 13, that person may make amendment to such return in an amended return as prescribed by the Director General in respect of the amount of tax or additional tax payable by that person on the chargeable gains or on the amount of tax which has been or would have been wrongly repaid to him.
(2) An amended return under subsection (1) shall only be made after the due date for the furnishing of the return in accordance with section 13, but not later than six months from that date.
(3) For the purposes of this section, the amended return shall—
(a) specify the amount or additional amount of chargeable gains and the amount of tax or additional tax payable on that chargeable gains;
(b) specify the amount of tax payable on the tax which has or would have been wrongly repaid to him;
(c) specify the increased sum ascertained in accordance with subsection (4); or
(d) contain such particulars as may be required by the Director General.
(4) The tax or additional tax payable under subsection (1) shall be increased by a sum equal to ten per cent of the amount of such tax or additional tax.
(5) The amendment under subsection (1) shall only be made once.
(6) Where—
(a) a return for a year of assessment has been furnished in accordance with section 13; and
(b) the Director General has made an assessment for that year of assessment under section 15,
no amendment shall be allowed under this section.”.
Section 14 of the principal Act is amended—
(a) by substituting for subsection (1) the following subsection:
“(1) Where a person has furnished a return in accordance with section 13, the Director General shall be deemed to have made, on the day on which the return is furnished, an assessment in respect of that person in the amount of tax on the chargeable gains, the tax and the chargeable gains being the respective amounts as specified in the return.”; and
(b) by inserting after subsection (1) the following subsection:
“(1a) For the purposes of this Act, where the Director General is deemed to have made an assessment under subsection (1)—
(a) the return referred to in that subsection shall be deemed to be a notice of assessment; and
(b) the deemed notice of assessment shall be deemed to have been served on the person on the day on which the Director General is deemed to have made the assessment.”.
Section 15 of the principal Act is amended—
(a) by inserting after subsection (1) the following subsection:
“(1a) Where the Director General discovers that the whole or part of any tax repaid to a person, otherwise than in consequence of an agreement with respect to an assessment pursuant to subsection 101(2) of the Income Tax Act 1967 or in consequence of an assessment having been determined on appeal, has been repaid by mistake whether of fact or law, the Director General may make an assessment in respect of that person in the amount of that tax or that part of that tax, as the case may be:
Provided that no such assessment shall be made—
(a) if the repayment was in fact made on the basis of, or in accordance with, the practice of the Director General generally prevailing at the time when the repayment was made; or
(b) in respect of any tax, more than five years after the tax has been repaid.”; and
(b) in subsection (2), by substituting for the words “or wilful default” wherever appearing the words “, wilful default or negligence”.
T h e p r i n c i p a l A c t i s a m e n d e d b y i n s e r t i n g a f t e r section 15 the following section:
“Deemed assessment on the amended return
15a. (1) Where a person has furnished an amended return in accordance with section 13a for a year of assessment, the Director General shall be deemed to have made, on the day on which the amended return is furnished, an assessment or additional assessment in respect of that person—
(a) in the amount of tax or additional tax payable on the chargeable gains; or
(b) in the amount of tax which has been or would have been wrongly repaid,
the tax or additional tax and the chargeable gains being respective amounts as specified in the amended return.
(2) For the purposes of this Act, where the Director General is deemed to have made an assessment or additional assessment under subsection (1)—
(a) the amended return referred to in that subsection shall be deemed to be a notice of assessment or additional assessment; and
(b) the deemed notice of assessment or additional assessment shall be deemed to have been served on the person on the day on which the Director General is deemed to have made the assessment or additional assessment.”.
The principal Act is amended by inserting after section 16 the following section:
“Discharge of double assessments
16a. Where two or more assessments have been made with respect to a person on the same gain in respect of the same chargeable asset for a year of assessment, the Director General may discharge such assessments as need to be discharged in order to ensure that the gain is charged to tax only once for that year.”.
Section 17 of the principal Act is amended by inserting after the words “The Director General shall” the words “, as soon as may be after an assessment, other than assessment under subsections 14(1) and 15a(1), has been made,”.
The principal Act is amended by substituting for section 19 the following section:
“Relief in respect of error or mistake
19. (1) If any person who has paid tax for any year of assessment alleges that an assessment relating to that year is excessive by reason of error or mistake in a return or statement made by him for the purposes of this Act and furnished by him to the Director General prior to the assessment becoming final and conclusive, he may within five years after the end of the year of assessment within which the assessment was made make an application in writing to the Director General for relief.
(2) Upon receiving an application under subsection (1), the Director General shall inquire into the matter and, subject to this section, shall give such relief by way of repayment of tax in respect of the alleged error or mistake which appears to him to be just and reasonable.
(3) In determining any application under this section, the Director General shall have regard to all the relevant circumstances of the case and specifically—
(a) shall consider whether the granting of relief would result in the exclusion from charge to tax of income of the applicant; and
(b) for that purpose may take into consideration the chargeability of the applicant for years of assessment other than the year to which the application relates and assessment made upon him for those years.
(4) No relief shall be given under this section in respect of an error or mistake as to the basis on which the chargeability of the applicant ought to have been computed where the return or statement containing the error or mistake was in fact made on the basis of, or in accordance with, the practice of the Director General generally prevailing at the time when the return or statement was made.
(5) An application under subsection (1) shall be as nearly as may be in the same form as a notice of appeal under section 18, and, where the applicant is aggrieved by the Director General’s decision—
(a) the applicant may, within six months after the decision is being informed, request in the prescribed form for the Director General to forward the application 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 102 of the Income Tax Act 1967; and
(c) the application shall thereupon be deemed to be an appeal and shall be disposed of accordingly.”.
The principal Act is amended by inserting after section 19 the following section:
“Relief other than in respect of error or mistake
19a. (1) Where any person, who has furnished to the Director General a return in respect of a chargeable asset disposed of in a year of assessment in accordance with section 13 and has paid tax for that disposal, 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; or
(b) the approval for any exemption, relief, remission, allowance or deduction is granted after the year of assessment in which the return is furnished,
that person may make an application in writing to the Director General for relief.
(2) The application under subsection (1) shall be made 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.
(3) Upon receiving an application under subsection (1), the Director General shall inquire into the matter and may give such relief by way of repayment of tax which appears to the Director General to be just and reasonable.
(4) An application under subsection (1) shall be made as nearly as may be in the same form as a notice of appeal under section 99 of the Income Tax Act 1967.
(5) Where the applicant is aggrieved by the Director General’s decision on the application under subsection (1)—
(a) the applicant may within six months after being informed of the decision, request in writing to the Director General to forward the application 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 102 of the Income Tax Act 1967; and
(c) the application shall thereupon be deemed to be an appeal and shall be disposed of accordingly.”.
The principal Act is amended by substituting for section 20 the following section:
“Finality of assessment
20. (1) Where—
(a) no valid notice of appeal against an assessment has been given under section 18 within the time specified by that section (or any extension thereof);
(b) an agreement has been reached with respect to an assessment pursuant to subsection 101(2) of the Income Tax Act 1967;
(c) an assessment has been determined on appeal and there is no right of further appeal; or
(d) a valid notice of appeal against an assessment has been given but the appellant dies before the hearing of the appeal by the Special Commissioners is commenced or completed and no personal representatives of the estate of the deceased appellant applies to the Special Commissioners within two years after his death to proceed with or complete the hearing,
the assessment as made, agreed to or determined shall be final and conclusive for the purposes of this Act.
(2) Nothing in subsection (1) shall prejudice the exercise of any power conferred on the Director General by section 15 or 16a.”.
Section 21 of the principal Act is amended—
(a) in subsection (1), by substituting for the words “Subject to this section” the words “Except as provided in subsections (1a) and (1b)”; and
(b) by inserting after subsection (1) the following subsections:
“(1a) Where an assessment on a return has been made under subsection 14(1), the tax or additional tax payable under the assessment shall be due and payable within the period of sixty days from the date of disposal whether or not that person appeals against the assessment or additional assessment.
(1b) Where an assessment on an amended return has been made under section 15a, the tax or additional tax payable under the assessment shall be due and payable on the day the amended return is furnished whether or not that person appeals against the assessment or additional assessment.”.
The principal Act is amended by inserting after section 28 the following sections:
“Power to call for specific returns and production of books
28 a . For the purpose of obtaining full information for ascertaining whether or not a person is chargeable to tax or for determining his liability, the Director General may by notice under his hand require that or any other person—
(a) to complete and deliver to the Director General within a time specified in the notice, not being less than thirty days from the date of service of the notice, any return specified in the notice;
(b) to attend personally before the Director General and produce for examination all books, accounts, returns and other documents which the Director General thinks necessary;
(c) to make a return in accordance with paragraph (a) and also to attend in accordance with paragraph (b); or
(d) to provide in writing such information or particulars which the Director General thinks necessary.
Power to call for statement of bank accounts, etc.
28b. The Director General may by notice under his hand require any person to furnish within a time specified in the notice, not being less than thirty days from the date of service of the notice, a statement containing particulars of—
(a) all banking accounts—
(i) in his own name or in the name of a wife or dependent child of his or jointly in any such names;
(ii) in which he is or has been interested jointly or solely; or
(iii) on which he has or has had power to operate jointly or solely,
being accounts which are in existence or have been in existence at any time during a period to be specified in the notice;
(b) all savings and loan accounts, deposits, building society accounts and co-operative society accounts in regard to which he has or has had any interest or power to operate jointly or solely during that period;
(c) all assets which he and any wife or dependent child of his possess or have possessed during that period;
(d) all disposals of his and the chargeable gain from those disposals; and
(e) all facts bearing upon his present or past chargeability to tax.
Duty to keep documents for ascertaining chargeable gain and tax payable
28c. (1) Subject to this section, every person who is required to furnish a return of his disposals for a year of assessment under this Act shall keep and retain in safe custody sufficient documents for a period of seven years from the end of that year of assessment for the purpose of ascertaining his chargeable gain and tax payable.
(2) Where a person referred to in subsection (1) has not furnished a return as required under this Act for a year of assessment, that person shall keep and retain the documents referred to in subsection (1) which relate to that year of assessment for a period of seven years after the end of the year in which the return is furnished.
(3) The Director General may waive all or any of the provisions under subsection (1) in respect of any disposal.
(4) Any person who is required by this section to keep documents and—
(a) does so electronically, shall retain the documents in an electronically readable form and shall keep the documents in such a manner as to enable the documents to be readily accessible and convertible into writing; or
(b) has originally kept documents in a manual form and subsequently converts those documents into an electronic form, shall retain those documents prior to the conversion in their original form.
(5) All documents that relate to any disposal of chargeable assets situated in Malaysia shall be kept and retained in Malaysia.
(6) For the purposes of this section, “documents” includes—
(a) statement of chargeable gains;
(b) statement of income and incidental cost; and
(c) invoices, vouchers, receipts and such other documents as are necessary to verify the particulars in a return.”.
Subsection 57a(3) of the principal Act is amended by inserting after the words “in writing to a” the word “nominee,”.
Schedule 2 to the principal Act is amended—
(a) in subparagraph 1(1)—
(i) by inserting after the definition of “connected person” the following definition: ‘ “co-operative society” means any co-operative society registered under the Co-operative Societies Act 1993 [Act 502];’;
(ii) in the English language text, in the definition of “relative”, by substituting for the full stop at the end of that definition a semi colon; and
(iii) by inserting after the definition of “relative” the following definition:
‘ “trust body” has the meaning assigned to it under the Income Tax Act 1967.’; and
(b) in paragraph 34a, by inserting after subparagraph (5) the following subparagraph:
“(5a) This paragraph shall not apply to an acquisition or a disposal of any shares by a company, limited liability partnership, trust body or co-operative society, other than a Labuan entity as provided under section 2b of the Labuan Business Activity Tax Act 1990, on or after 1 January 2024.”.
Chapter IV — AMENDMENTS TO THE STAMP ACT 1949
This Chapter comes into operation on 1 January 2024.
The Stamp Act 1949, which is referred to as the “principal Act” in this Chapter, is amended in section 2—
(a) by substituting for the full stop at the end of the definition of “stock” a semi colon; and
(b) by inserting after the definition of “stock” the following definition:
‘ “writing” or “written” includes any handwriting, typewriting, printing, electronic record or transmission which is in an electronically readable form.”.
Section 7 of the principal Act is amended—
(a) in subsection (1)—
(i) by deleting paragraph (a); and
(ii) by deleting paragraph (aa); and
(b) by deleting subsections (2), (3), (4), (5), (6), (7) and (8).
The principal Act is amended by deleting section 8.
Subsection 15(6) of the principal Act is amended by substituting for the words “which the duty paid has been impressed” the words “which the duty has been paid”.
Section 39 of the principal Act is amended—
(a) in subsection (1), by substituting for the words “by filing a notice of appeal with the High Court” the words “in accordance with the procedure and practice for the time being in force in the High Court”;
(b) by substituting for subsection (1a) the following subsection:
“(1 a ) Where an appeal has been filed under subsection (1), the cause papers of the appeal shall be served on the Collector within the time stipulated for the filing of the appeal.”; and
(c) by inserting after subsection (5) the following subsection:
“(6) Unless it is otherwise provided by rules of court, the rules of court for the time being in force in relation to appeals in civil matters from the High Court in its original jurisdiction to the Court of Appeal and the Federal Court shall apply with the necessary modifications to appeals under this section to the High Court, the Court of Appeal and the Federal Court respectively.”.
Section 42 of the principal Act is amended by inserting after subsection (2) the following subsection:
“(2 a ) For the purposes of subsection (2), where the instrument is received by way of electronic transmission, the date of receipt thereof shall be verified by the production of a copy or print-out of the electronic transmission.”.
The principal Act is amended by substituting for section 43 the following section:
“Bills, cheques or notes drawn out of Malaysia
43. Every person into whose hands any cheque or promissory note drawn or made out of Malaysia comes in Malaysia before it is stamped shall, before he presents the same for acceptance or payment, or endorses, transfers or otherwise negotiates the same in Malaysia, bring the cheque or promissory note to the Collector for assessment of duty in accordance with section 36 within thirty days after it has been first received in Malaysia.”.
Subsection 45(1) of the principal Act is amended by substituting for the words “affix thereto the proper adhesive stamp, and upon cancelling the same in manner herein before provided,” the words “bring the cheque to the Collector for assessment of duty in accordance with section 36, and”.
Section 48 of the principal Act is amended—
(a) by deleting the words “43 or”; and
(b) by deleting paragraphs (a) and (b).
Section 57 of the principal Act is amended by deleting paragraph (b).
The principal Act is amended by deleting section 60.
The principal Act is amended by deleting section 60a.
The principal Act is amended by deleting section 71.
The principal Act is amended by deleting section 72.
The principal Act is amended by deleting section 73.
Section 82 of the principal Act is amended by deleting paragraphs (a) and (b).
The First Schedule to the principal Act is amended—
(a) in subparagraph 27(a)(ii), in the column “Proper Stamp Duty” by deleting the words “but the total duty payable shall not exceed RM2,000”; and
(b) in Item 32—
(i) by inserting after paragraph (a) and the particulars relating to it the following paragraph and particulars:
“(aa) On sale of any property RM4.00 for (except stock, shares, every RM100 marketable securities and or fractional accounts receivables or book part of RM100 debts of the kind mentioned in of the amount paragraph (c)) to a foreign of the money company or a person who value of the is not a citizen and not a consideration permanent resident or the market value of the p r o p e r t y, whichever is the greater. ”; and
(ii) by substituting for paragraph (h) and the particulars relating to it the following paragraph and particulars:
“(h) Of any property—
(i) by way of gift (whether S e e G i f t a n d by way of voluntary subsection 16(1) disposition or otherwise)
(ii) by way of release RM10.00 or renunciation by a beneficiary of a deceased estate to another beneficiary entitled under the same estate ”.
The principal Act is amended by deleting the Second Schedule.
The principal Act is amended by deleting the Fifth Schedule.
Chapter V — AMENDMENTS TO THE PETROLEUM (INCOME TAX) ACT 1967
(1) Subparagraph 72(a)(i) and sections 75, 76 and 77 come into operation on 1 January 2024.
(2) Subparagraph 72(a)(ii), paragraph 72(b) and section 74 have effect for the year of assessment 2024 and subsequent years of assessment.
(3) Section 73 has effect for the Financial Year beginning on 1 January 2025 and subsequent Financial Years.
(4) Section 78 comes into operation on the coming into operation of this Act.
The Petroleum (Income Tax) Act 1967, which is referred to as the “principal Act” in this Chapter, is amended in section 2—
(a) in subsection (1)—
(i) by inserting after the definition of ‘ “disposal” and “disposed of” ’ the following definition:
‘ “electronic invoice” has the meaning assigned to it in the Income Tax Act 1967 [Act 53];’; and
(ii) by substituting for the definition of “secondary recovery” the following definition:
‘ “secondary recovery” means a method or process which has as its object the production of quantities of hydrocarbons by the application of external energy to the underground reservoir which is carried out—
(a) subsequent to the earlier recovery process for the purposes of additional and accelerated recovery of those hydrocarbons; or
(b) for the initial recovery or extraction of those hydrocarbons;’; and
(b) in subsection (4), by substituting for subparagraph (a)(i) the following subparagraph:
“(a)(i) notwithstanding subsection (3), where a partnership carries on petroleum operations under two or more petroleum agreements and the areas under
those agreements are contiguous, the petroleum operations in those areas shall be treated as being carried on under one petroleum agreement if all the members of that partnership are the same original parties to the petroleum agreements and approved by the Director General:
Provided that where a partnership is succeeded under subsection (3), this paragraph shall apply to an area under the petroleum agreement, including any expansion thereof which are contiguous prior to the succession of the partnership:
Provided further that where an area under a petroleum agreement is contiguous with agreement areas which are contiguous under existing petroleum agreements, that first mentioned area shall be treated as contiguous with the existing petroleum agreements areas for the purposes of this paragraph if the members of the partnership of the first mentioned petroleum agreement are the same as the original parties to the existing petroleum agreements; and”.
Section 3 of the principal Act is amended—
(a) by renumbering the existing section as subsection (1); and
(b) by inserting after the renumbered subsection (1) the following subsections:
“(2) Notwithstanding any other provisions of this Act and for the purposes of the imposition of Domestic Top-up Tax or Multinational Top-up Tax and the implementation of the GloBE Rules, Part XI of the Income Tax Act 1967 shall also apply to a chargeable person who is a Constituent Entity that is a member of a Multinational Enterprise Group that has annual revenue of seven hundred and fifty million euro or more in the Consolidated Financial Statements of
the Ultimate Parent Entity in at least two of the four consecutive Financial Years immediately preceding the tested Financial Year.
(3) Where one or more of the Financial Years of the Multinational Enterprise Group taken into account for the purposes of subsection (2) is of a period other than twelve months, for each of those Financial Years the seven hundred and fifty million euro annual revenue is adjusted proportionally to correspond with the length of the relevant Financial Year.
(4) For the purposes of subsections (2) and (3), “Consolidated Financial Statement”, “Constituent Entity”, “Financial Year”, “GloBE Rules”, “Multinational Enterprise Group” and “Ultimate Parent Entity” have the meaning assigned to them in Part XI of the Income Tax Act 1967.”.
Subsection 4(3) of the principal Act is amended by substituting for the words “For the avoidance of doubt” the words “Except where subsection 2(4) applies, for the avoidance of doubt”.
The principal Act is amended by inserting after section 34a the following section:
“Duty to issue electronic invoice
34b. (1) Subject to this section, a person shall, in a year of assessment, issue an electronic invoice for each transaction in respect of any goods sold or services performed from petroleum operations by the person in that year of assessment.
(2) For the purposes of subsection (1)—
(a) the persons who shall issue the electronic invoice and the particulars to be included in the electronic invoice are as prescribed by the Minister under section 82c of the Income Tax Act 1967; and
(b) the conditions and specifications under which an electronic invoice is to be issued shall be as determined by the Director General under the guidelines issued in accordance with section 134a of the Income Tax Act 1967.
(3) Any electronic invoice issued by a person in respect of goods sold or services performed under subsection (1) shall be transmitted electronically to and validated by the Director General.
(4) Where for any year of assessment a person is required to issue an invoice under any other written law in respect of goods sold or services performed from petroleum operations, the electronic invoice issued in accordance with subsection (1) including any other particulars as may be required shall be construed as an invoice issued under that law, provided that where the particulars of electronic invoice are inconsistent with the requirements for the issuance of invoice under that law, the electronic invoice shall only be valid and enforceable for the purposes of this Act.
(5) Where for any year of assessment an electronic invoice is issued in accordance with subsection (1), the Director General shall not be liable for any loss or damage suffered by any person due to any error or omission arising, appearing in an electronic invoice provided that the error or omission was made in good faith and in the ordinary course of the discharge of the duties of the Director General or occurred or arose as a result of any defect or breakdown in the service or in the equipment used for the issuance of the electronic invoice.
(6) Subject to the conditions as may be determined by the Director General, where for any year of assessment a person acquires any goods sold or enjoys any services performed, the person shall for that year of assessment issue a self-billed invoice in accordance with the conditions as may be imposed by the Director General and the invoice shall be treated as an electronic invoice.
(7) Where for any year of assessment a person makes an error or mistake in respect of any electronic invoice issued in accordance with this section, the person may for the purpose of rectifying the error or mistake issue a substitute electronic invoice within three days from the date of issuance of the defective electronic invoice.
(8) Where for any year of assessment any goods sold or services performed by a person from petroleum operations involves the issuance of credit note or debit note, the person issuing the credit note or debit note shall make adjustments in ascertaining his chargeable income for that year of assessment accordingly.
(9) A person may, in respect of any goods sold or services performed by him in any year of assessment, add any additional particulars to the electronic invoice under this section.
(10) The provisions of the Personal Data Protection Act 2010 [Act 709] shall not apply to any personal data processed for electronic invoice issued or transmitted to the Director General under this section and any other related provisions of this Act.”.
The principal Act is amended by inserting after section 57a the following section:
“Failure to issue electronic invoice
57b. Any person who, without reasonable excuse, contravenes subsection 34b(1) or (6), shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than two hundred ringgit and not more than twenty thousand ringgit or to imprisonment for a term not exceeding six months or to both.”.
Section 71 of the principal Act is amended—
(a) in subsection (4), by inserting after paragraph (a) the following paragraph:
“(aa) the production or disclosure of classified material in relation to electronic invoice to the Director General of Customs and Excise (or to the public officers under his direction and control) or the use of classified material in relation to electronic invoice by the Director General of Customs and Excise, to such an extent as is necessary or expedient for the exercise of his function;”; and
(b) in subsection (5), in the definition of “classified person”—
(i) in paragraph (c), by deleting the word “or” at the end of the paragraph;
(ii) in paragraph (d), by inserting after the words “Malaysia;” the word “or”; and
(iii) by inserting after paragraph (d) the following paragraph:
“(e) any person who, for any reason, has by any means access to any information on an electronic invoice under this Act;”.
Section 82a of the principal Act is amended by inserting after subsection (3) the following subsection:
“(3a) For the purposes of subsection (1), a person referred to under subsection 27(2) may authorize in writing an employee to furnish on his behalf any form prescribed under this Act in the manner provided for in subsection (1).”.
Chapter VI — AMENDMENTS TO THE LABUAN BUSINESS ACTIVITY TAX ACT 1990
(1) Sections 80, 83, 84, 85 and 86 come into operation on 1 January 2024.
(2) Sections 81 and 82 have effect for the Financial Year beginning on 1 January 2025 and subsequent Financial Years.
The Labuan Business Activity Tax Act 1990, which is referred to as the “principal Act” in this Chapter, is amended in subsection 2(1) by inserting after the definition of “domestic company” the following definition:
‘ “electronic invoice” has the meaning assigned to it in the Income Tax Act 1967;’.
Section 3 of the principal Act is amended—
(a) by renumbering the existing section as subsection (1); and
(b) by inserting after the renumbered subsection (1) the following subsections:
“(2) Notwithstanding any other provisions of this Act and for the purposes of the imposition of Domestic Top-up Tax or Multinational Top-up Tax and the implementation of the GloBE Rules, Part XI of the Income Tax Act 1967 shall also apply to a Labuan entity which is a Constituent Entity that is a member of a Multinational Enterprise Group that has annual
revenue of seven hundred and fifty million euro or more in the Consolidated Financial Statements of the Ultimate Parent Entity in at least two of the four consecutive Financial Years immediately preceding the tested Financial Year.
(3) Where one or more of the Financial Years of the Multinational Enterprise Group taken into account for the purposes of subsection (2) is of a period other than twelve months, for each of those Financial Years the seven hundred and fifty million euro annual revenue is adjusted proportionally to correspond with the length of the relevant Financial Year.
(4) For the purposes of subsections (2) and (3), “Consolidated Financial Statement”, “Constituent Entity”, “Financial Year”, “GloBE Rules”, “Multinational Enterprise Group” and “Ultimate Parent Entity” have the meaning assigned to them in Part XI of the Income Tax Act 1967.”.
Subsection 9(1) of the principal Act is amended by substituting for the words “section 3” the words “subsection 3(1)”.
The principal Act is amended by inserting after section 21a the following section:
“Admissibility of electronic record
21b. (1) Notwithstanding any other written law, where in any proceedings under this Act an electronic record of any document is stored or received by or communicated to the Director General on an electronic medium or by way of electronic transmission, the electronic record or the copy or print-out of that electronic record shall be admissible as evidence of the facts stated or contained therein:
Provided that the record or the copy or print-out is—
(a) certified by the Director General to contain all or any information furnished, stored, communicated or received on an electronic medium or by way of electronic transmission under this section; or
(b) otherwise authenticated in the manner provided in the Evidence Act 1950 [Act 56] for authentication of documents produced by computer.
(2) Where the electronic record of any document, or a copy or print-out of that record is admissible under subsection (1), it shall be presumed, until the contrary is proved, that the record or the copy or print-out accurately reproduces the content of that document.
(3) For the purposes of this Act, “electronic medium” includes a data, text, an image or any other information stored, received or communicated by means of electronic, magnetic, optical, imaging or any other data processing device.”.
Section 22a of the principal Act is amended in subsection (1)—
(a) in paragraph (a), by deleting the word “and” at the end of the paragraph; and
(b) by inserting after paragraph (a) the following paragraph:
“(aa) the disclosure of information in relation to electronic invoice to the Director General of Customs and Excise (or to the public officers under his direction and control) or the use of information in relation to electronic invoice by the Director General of Customs and Excise, to such an extent as is necessary or expedient for the exercise of his function; and”.
The principal Act is amended by inserting after section 22d the following section:
“Duty to issue electronic invoice
22da. (1) Subject to this section, a person shall, in a year of assessment issue an electronic invoice for each transaction in respect of any goods sold or services performed by the person in that year of assessment.
(2) For the purposes of subsection (1)—
(a) the persons who shall issue the electronic invoice and the particulars to be included in the electronic invoice are as prescribed by the Minister under section 82c of the Income Tax Act 1967; and
(b) the conditions and specifications under which an electronic invoice is to be issued shall be as determined by the Director General under the guidelines issued in accordance with section 17a of this Act.
(3) Any electronic invoice issued by a person in respect of goods sold or services performed under subsection (1) shall be transmitted electronically to and validated by the Director General.
(4) Where for any year of assessment a person is required to issue an invoice under any other written law in respect of goods sold or services performed, the electronic invoice issued in accordance with subsection (1) including any other particulars as may be required shall be construed as an invoice issued under that law, provided that where the particulars of electronic invoice are inconsistent with the requirements for the issuance of invoice under that law, the electronic invoice shall only be valid and enforceable for the purposes of this Act.
(5) Where for any year of assessment an electronic invoice is issued in accordance with subsection (1), the Director General shall not be liable for any loss or damage suffered by any person due to any error or omission arising, appearing
in an electronic invoice provided that the error or omission was made in good faith and in the ordinary course of the discharge of the duties of the Director General or occurred or arose as a result of any defect or breakdown in the service or in the equipment used for the issuance of the electronic invoice.
(6) Subject to the conditions as may be determined by the Director General, where for any year of assessment a person acquires any goods sold or enjoys any services performed, the person shall for that year of assessment issue a self-billed invoice in accordance with the conditions as may be imposed by the Director General and the invoice shall be treated as an electronic invoice.
(7) The Director General may, for any year of assessment in respect of any goods sold or services performed, determine a person to consolidate the number of transactions in respect of such goods sold or services performed in that year of assessment into a consolidated transaction invoice, and that person shall transmit the consolidated transaction invoice to the Director General within a specified time and in accordance with the conditions as determined by the Director General and such consolidated transaction invoice shall for the purposes of this section constitute an electronic invoice issued by that person.
(8) Where for any year of assessment a person makes an error or mistake in respect of any electronic invoice issued in accordance with this section, the person may for the purpose of rectifying the error or mistake issue a substitute electronic invoice within three days from the date of issuance of the defective electronic invoice.
(9) Where for any year of assessment any goods sold or services performed by a person involves the issuance of credit note or debit note, the person issuing the credit note or debit note shall make adjustments in ascertaining his chargeable profits for that year of assessment accordingly.
(10) A person may, in respect of any goods sold or services performed by him in any year of assessment, add any additional particulars to the electronic invoice under this section.
(11) The provisions of the Personal Data Protection Act 2010 [Act 709] shall not apply to any personal data processed for electronic invoice issued or transmitted to the Director General under this section and any other related provisions of this Act.”.
The principal Act is amended by inserting after section 22e the following section:
“Failure to issue electronic invoice
22ea. Any person who, without reasonable excuse, contravenes subsection 22da(1), (6) or (7), shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than two hundred ringgit and not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding six months or to both.”.
Chapter VII — AMENDMENT TO THE ENTERTAINMENTS DUTY ACT 1953
Section 88 comes into operation on the coming into operation of this Act.
Section 23 of the Entertainments Duty Act 1953 is amended by substituting for subsection (2) the following subsection:
“(2) Any regulations made under this Act shall be laid before the Dewan Rakyat.”.
Chapter VIII — AMENDMENT TO THE CUSTOMS ACT 1967
Section 90 comes into operation on the coming into operation of this Act.
Section 11 of the Customs Act 1967 is amended—
(a) in the shoulder note, by deleting the words “to be approved by the Dewan Rakyat”;
(b) by substituting for subsection (2) the following subsection:
“(2) Any order made under subsection (1) shall be laid before the Dewan Rakyat.”; and
(c) by deleting subsections (3), (4) and (5).
Chapter IX — AMENDMENT TO THE EXCISE ACT 1976
Section 92 comes into operation on the coming into operation of this Act.
Section 6 of the Excise Act 1976 is amended—
(a) by substituting for subsection (2) the following subsection:
“(2) Any order made under subsection (1) shall be laid before the Dewan Rakyat.”; and
(b) by deleting subsections (3), (4) and (5).
Chapter X — AMENDMENT TO THE GOODS VEHICLE LEVY ACT 1983
Section 94 comes into operation on the coming into operation of this Act.
Section 3 of the Goods Vehicle Levy Act 1983 is amended by substituting for subsection (3) the following subsection:
“(3) Any order made under subsection (2) shall be laid before the Dewan Rakyat.”.
Chapter XI — AMENDMENT TO THE WINDFALL PROFIT LEVY ACT 1998
Section 96 comes into operation on the coming into operation of this Act.
The Windfall Profit Levy Act 1998 is amended by substituting for section 7 the following section:
“Order to be laid before Dewan Rakyat
7. An order determining the amount of levy to be levied under this Act shall be laid before the Dewan Rakyat.”.
Chapter XII — AMENDMENTS TO THE TOURISM TAX ACT 2017
(1) Section 98 comes into operation on the coming into operation of this Act.
(2) Sections 99, 100, 101, 102, 103, 104, 105, 106, 107, 108 and 109 come into operation on 1 January 2024.
The Tourism Tax Act 2017, which is referred to as the “principal Act” in this Chapter, is amended in section 8—
(a) by substituting for subsection (3) the following subsection:
“(3) Any order made under subsection (1) shall be laid before the Dewan Rakyat.”; and
(b) by deleting subsections (4) and (5).
Subsection 10(1) of the principal Act is amended by substituting for the words “in the manner as may be prescribed” the words “in the form and manner as determined by the Director General”.
Subsection 11(1) of the principal Act is amended by substituting for the words “in the manner as may be prescribed” the words “in the form and manner as determined by the Director General”.
Section 14 of the principal Act is amended by inserting after subsection (1) the following subsection:
“(1a) Notwithstanding subsection (1), the Director General may, upon request in writing and subject to such conditions as he thinks fit to impose, approve any one or more of the prescribed particulars not to be contained in an invoice.”.
Section 19 of the principal Act is amended—
(a) in subsection (1), by substituting for the words “as may be prescribed and the return shall be furnished to the Director General in the prescribed manner” the words “in the form and manner as determined by the Director General”; and
(b) in subsection (2), by substituting for the words “the return in the taxable period following after the end of that period of twelve calendar months and the return shall be furnished to the Director General in the prescribed manner” the words “a return in the form and manner as determined by the Director General in the taxable period following after the end of that period of twelve calendar months”.
Section 20c of the principal Act is amended by substituting for the words “in the manner as may be prescribed” wherever appearing the words “in the form and manner as determined by the Director General”.
Subsection 20 i (1) of the principal Act is amended by substituting for the words “as may be prescribed and the return shall be furnished to the Director General in the prescribed manner” the words “in the form and manner as determined by the Director General”.
Subsection 22(1) of the principal Act is amended by substituting for the words “in the prescribed form to the Director General” the words “in the form and manner as determined by the Director General”.
The principal Act is amended by inserting after Part VI the following part:
“Part VIa
RULING
Public ruling
31a. (1) The Director General may, at any time, make a public ruling on the application of any provision of this Act in relation to any person or class of persons, or any type of business activities.
(2) The Director General may amend or withdraw, either wholly or partly, any public ruling made under this section.
(3) Notwithstanding any provision of this Act, where a public ruling under subsection (1) applies to any person in relation to a business activity and the person applies the provision in the manner stated in the ruling, the Director General shall apply the provision in relation to the person and the business activities in accordance with the ruling.”.
Subsection 65(2) of the principal Act is amended by substituting for paragraph (b) the following paragraph:
“(b) produce any thing in the form and manner as determined by the Director General which is required to be submitted for the purposes of the matter being transacted.”.
The principal Act is amended by deleting section 66.
Section 70 of the principal Act is amended by deleting paragraph (2)(c).
Chapter XIII — AMENDMENTS TO THE SALES TAX ACT 2018
(1) Sections 111, 112, 113, 114, 117 and 125 come into operation on the coming into operation of this Act.
(2) Sections 115, 116, 118, 119, 120, 121, 122, 123 and 124 come into operation on 1 January 2024.
The Sales Tax Act 2018, which is referred to as the “principal Act” in this Chapter, is amended in section 10—
(a) by substituting for subsection (3) the following subsection:
“(3) Any order made under subsection (2) shall be laid before the Dewan Rakyat.”; and
(b) by deleting subsections (4), (5) and (6).
Section 11a of the principal Act is amended in the definition of “seller”, by substituting for the words “low value goods on an online marketplace” the words “low value goods on an online platform”.
Subsection 11 b (2) of the principal Act is amended by substituting for the words “sections 3, 14, 15, 16, 23, 32, 35” the words “sections 3, 14, 15, 16, 32”.
The principal Act is amended by inserting after section 11d the following section:
“Sales tax on importation is not applicable on low value goods
11e. Notwithstanding paragraph 8(1)(b), no sales tax shall be levied on the low value goods if it is proven to the proper officer of sales tax that the sales tax has been charged by the registered seller and being paid on the low value goods.”.
Subsection 13(1) of the principal Act is amended by substituting for the words “in the prescribed form” the words “in the form and manner as determined by the Director General”.
Subsection 14(1) of the principal Act is amended by inserting after the words “registered manufacturer” the words “in the form and manner as determined by the Director General”.
Section 23 of the principal Act is amended—
(a) by renumbering the existing section as subsection (1); and
(b) by inserting after the renumbered subsection (1) the following subsection:
“(2) Notwithstanding subsection (1), the Director General may, upon request in writing by the registered manufacturer and subject to such conditions as he thinks fit to impose, approve any one or more of the prescribed particulars not to be contained on a credit note or debit note.”.
Subsection 26(1) of the principal Act is amended by substituting for the words “as may be prescribed and the return shall be furnished to the Director General in the prescribed manner” the words “in the form and manner as determined by the Director General”.
Subsection 39(1) of the principal Act is amended by substituting for the words “in the prescribed form” the words “in the form and manner as determined by the Director General”.
Subsection 43(1) of the principal Act is amended by substituting for the words “Any person may apply, in the prescribed form together with the prescribed fee, to the Director General” the words “Any person may apply to the Director General, in the form and manner as determined by the Director General together with the prescribed fee,”.
Paragraph 82(4)(b) of the principal Act is amended by substituting for the words “in the prescribed form” the words “in the form and manner as determined by the Director General”.
Subsection 90(2) of the principal Act is amended by substituting for paragraph (b) the following paragraph:
“(b) produce any thing in the form and manner as determined by the Director General which is required to be submitted for the purposes of the matter being transacted.”.
Subsection 96(2) of the principal Act is amended by substituting for the words “in the prescribed form” the words “in the form and manner as determined by the Director General”.
The principal Act is amended by deleting paragraph 106(2)(k).
The Schedule of the principal Act is amended—
(a) in relation to section 25, in column (2), by substituting for paragraph 1 the following paragraph: “1. In subsection (1), by substituting for the words “following month” the words “following two months”.”; and
(b) by inserting before the particulars in relation to section 35a the following particulars:
(1) (2) Provision of this Act Modifications
“ Section 35 1. Substitute for the words “taxable goods manufactured or imported” wherever appearing the words “sale of low value goods”.
2. Substitute for the words “taxable goods” wherever appearing the words “low value goods”.”.
Chapter XIV — AMENDMENTS TO THE SERVICE TAX ACT 2018
(1) Section 127 comes into operation on the coming into operation of this Act.
(2) Sections 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139 and 140 come into operation on 1 January 2024.
The Service Tax Act 2018, which is referred to as the “principal Act” in this Chapter, is amended in section 10—
(a) by substituting for subsection (3) the following subsection:
“(3) Any order made under subsection (2) shall be laid before the Dewan Rakyat.”; and
(b) by deleting subsections (4), (5) and (6).
Subsection 13(1) of the principal Act is amended by substituting for the words “in the prescribed form” the words “in the form and manner as determined by the Director General”.
Subsection 14(1) of the principal Act is amended by inserting after the words “registered person” the words “in the form and manner as determined by the Director General”.
Subsection 17(1) of the principal Act is amended by substituting for the words “in the prescribed form” the words “in the form and manner as determined by the Director General”.
Subsection 26(1) of the principal Act is amended by substituting for the words “as may be prescribed and the return shall be furnished to the Director General in the prescribed manner” the words “in the form and manner as determined by the Director General”.
Paragraph 26a(1)(a) of the principal Act is amended by substituting for the words “as may be prescribed and the declaration shall be furnished to the Director General” the words “in the form and manner as determined by the Director General”.
Subsection 38(1) of the principal Act is amended by substituting for the words “in the prescribed form” the words “in the form and manner as determined by the Director General”.
Subsection 39(1) of the principal Act is amended by inserting after the words “his customer” the words “who is not doing business”.
Subsection 42(1) of the principal Act is amended by substituting for the words “Any person may apply, in the prescribed form together with the prescribed fee, to the Director General” the words “Any person may apply to the Director General, in the form and manner as determined by the Director General together with the prescribed fee,”.
Subsection 56 c (1) of the principal Act is amended by substituting for the words “prescribed form” the words “form and manner as determined by the Director General”.
Section 56h of the principal Act is amended—
(a) by inserting after subsection (3) the following subsection:
“(3a) The Director General may, as he thinks fit, re-determine any taxable period other than the period as determined under subsection (1) or (3) for the foreign registered person.”;
(b) by substituting for subsection (4) the following subsection:
“(4) A foreign registered person shall, in respect of his taxable period, account for the service tax due, in a return, as may be determined by the Director General and the return shall be furnished to the Director General in the manner as determined by the Director General not later than the last day of the month following the end of his taxable period to which the return relates.”; and
(c) by inserting after subsection (4a) the following subsection:
“(4b) Subject to subsections (4) and (4a), a return shall be deemed to be furnished upon receiving by the Director General in the form and manner as determined by the Director General.”.
Subsection 75(2) of the principal Act is amended by substituting for paragraph (b) the following paragraph:
“(b) produce any thing in the form and manner as determined by the Director General which is required to be submitted for the purposes of the matter being transacted.”.
Subsection 81(2) of the principal Act is amended by substituting for the words “in the prescribed form” the words “in the form and manner as determined by the Director General”.
Section 91 of the principal Act is amended—
(a) by deleting paragraph (2)(k); and
(b) by renumbering subsection (2) after the existing paragraph (2)(m) as subsection (3).
Chapter XV — AMENDMENT TO THE DEPARTURE LEVY ACT 2019
Section 142 comes into operation on the coming into operation of this Act.
Section 11 of the Departure Levy Act 2019 is amended by substituting for subsection (2) the following subsection:
“(2) Any order made under subsection (1) shall be laid before the Dewan Rakyat.”.
Cite this legislation
- Official citation
- Act 851
- Source
- lom.agc.gov.my
- Data synced
- Licence
- Official text, free to reproduce (Copyright Act 1987 [Act 332] s 3) ↗
Finance (No. 2) Act 2023 [Act 851] (Laws of Malaysia, lom.agc.gov.my). Retrieved via LawPlayer, https://lawplayer.com/my/act/act-851
This text is synced from lom.agc.gov.my. In case of any discrepancy, the authoritative text prevails.
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).