Commencement of 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.
Amendment of section 2
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;’.
Amendment of section 4
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;”.
Amendment of section 4b
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.”.
Amendment of section 6
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.”.
New section 15c
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
Amendment of section 82
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)”.
New sections 82b and 82c
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.”.
Amendment of section 83
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.”.
Amendment of section 96a
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)”.
Amendment of section 97a
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)”.
Amendment of section 99
Subsection 99(1a) of the principal Act is amended by substituting for the words “subsection 77a(1)” the words “subsection 77a(1) or (1b)”.
Amendment of section 103
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;”.
Amendment of section 107c
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.”.
Amendment of section 112
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)”.
Amendment of section 120
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)”.
Amendment of section 131a
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)”.
New section 134a
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.”.
Amendment of section 138
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.”.
Amendment of section 152a
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).”.
Amendment of section 154
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;”.
New Part XI
The principal Act is amended by inserting after Part X the following part:
“Part XI
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).
