INCOME TAX ACT 1967 (REVISED - 1971)
(1) This Act may be cited as the Income Tax Act 1967 .
(2) (Omitted) .
(3) This Act shall have effect for the year of assessment 1968 and subsequent years of assessment.
(1) In this Act, unless the context otherwise requires:
"adjusted income", in relation to a source and a basis period, means adjusted income ascertained in accordance with this Act;
"adjusted loss", in relation to a source and a basis period, means adjusted loss ascertained in accordance with this Act;
"aggregate income", in relation to a person and a year of assessment, means aggregate income ascertained in accordance with this Act;
"amended return" means an amended return made in accordance with section 77B;
[Ins. Act 693:s.4]
"approved loan" means:
(a) any loan or credit made to the Government, State Government (including any loan or acredit made to a person other than the Government or State Government where the loan or credit is guaranteed by the Government or State Government), local authority or statutory body; or
(b)
3 PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-3. Charge of income tax.
Subject to and in accordance with this Act, a tax to be known as income tax shall be charged for each year of assessment upon the income of any person accruing in or derived from Malaysia or received in Malaysia from outside Malaysia.
3A PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-3A. [Deleted by Act 451: s.4].
[Deleted by Act 451: s.4] .
3B PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-3B. Non-chargeability to tax in respect of offshore business activity.
Notwithstanding section 3, tax shall not be charged under this Act on income in respect of an offshore business activity carried on by an offshore company, other than an offshore company (in this Act referred to as "chargeable offshore company"), which has made an election under section 3A of the Labuan Offshore Business Activity Tax Act 1990.
[Am. by Act 683: s.4]
3C PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-3C. [Deleted by Act 578: s.4].
[Deleted by Act 578: s.4] .
4 PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-4. Classes of income on which tax is chargeable.
Subject to this Act, the income upon which tax is chargeable under this Act is income in respect of:
(a) gains or profits from a business, for whatever period of time carried on;
(aa) gains or profits from the disposal of capital asset;
[(aa) Ins. by Act 851]
(b) gains or profits from an employment;
(c) dividends, interest or discounts;
(d) rents, royalties or premiums;
(e) pensions, annuities or other periodical payments not falling under any of the foregoing paragraphs;
(f) gains or profits not falling under any of the foregoing paragraphs.
4A PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-4A. Special classes of income on which tax is chargeable.
Notwithstanding the provisions of section 4 and subject to this Act, the income of a person not resident in Malaysia for the basis year for a year of assessment in respect of:
(i) amounts paid in consideration of services rendered by the person or his employee in connection with the use of property or rights belonging to, or the installation or operation of any plant, machinery or other apparatus purchased from, such person;
(ii) amounts paid in consideration of any advice given, or assistance or services rendered in connection with the management or administration of any scientific, industrial or commercial undertaking, venture, project or scheme; or
[(ii) Subs. Act 812:s.5]
(iii) rent or other payments made under any agreement or arrangement for the use of any moveable property,
which is derived from Malaysia is chargeable to tax under this Act.
4B PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-4B. Non-business income.
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.
[Subs. by Act 851; Ins. by Act 755 of the year 2013]
4C PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-4C. Gains or profits from a business arising from stock in trade parted with by any element of compulsion.
For the purpose of paragraph 4 (a) , gains or profits from a business shall include an amount receivable arising from stock in trade parted with by any element of compulsion including on requisition or compulsory acquisition or in a similar manner.
[Ins. by Act 761 of the year 2014]
5 PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-5. Manner in which chargeable income is to be ascertained.
(1) Subject to this Act, the chargeable income of a person upon which tax is chargeable for a year of assessment shall be ascertained in the following manner:
(a) first, the basis period for each of his sources for that year shall be ascertained in accordance with chapter 2 of Part III;
(b) next, his gross income from each source for the basis period for that year shall be ascertained in accordance with Chapter 3 of that Part:
(c) next, his adjusted income from each source (or, in the case of a source consisting of a business, his adjusted income or adjusted loss from that source) for the basis period for that year shall be ascertained in accordance with Chapter 4 of that Part;
(d) next, his statutory income from each source for that year shall be ascertained in accordance with Chapter 5 of that Part:
(e) next, his aggregate income for that year and his to
6 PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-6. Rates of tax.
(1) (a) Except where this subsection provides otherwise and subject to sections 6A and 6D, income tax shall be charged for each year of assessment upon the chargeable income of every person for that year at the appropriate rate as specified in Part I of Schedule 1;
[(a) Am. Act 831:s.5]
(b) subject to the provisions of section 109 but notwithstanding any other provisions of this Act, where:
(i) the income of a person not resident in Malaysia for the basis year for a year of assessment consists of interest (other than interest on an approved loan or interest of the kind referred to in paragraph 33 of Part I, Schedule 6) or royalty derived from Malaysia; or
(ii) the income of a person (other than a company) not resident in Malaysia for the basis year for a year of assessment consists of remuneration or other income in respect of services performed or rendere
6A PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-6A. Tax rebate.
(1) Subject to this section, income tax charged for each year of assessment upon the chargeable income of every individual resident for the basis year for that year shall be rebated for that year of assessment in accordance with subsections (2), (2A) and (3) before any set off is made under section 110 and any credit is allowed under section 132 or section 133.
[(1) Am. Act 661:s.6; Am. Act 823:s.6]
(2) A rebate shall be granted for a year of assessment in the following amounts:
(a) four hundred ringgit in the case of an individual who has been allowed a deduction under paragraph 46(1) (a) for that year of assessment where his chargeable income for that year of assessment does not exceed thirty-five thousand ringgit;
(b) four hundred ringgit in the case of an individual who has been allowed a deduction under subsection 47(1) or (2) for that year of assessment
6B PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-6B. [Deleted by Act 661].
[Deleted by Act 661] .
6C PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-6C. [Deleted by Act 719/2011].
[Deleted by Act 719/2011] .
6D PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-6D. Tax rebate for company or limited liability partnership.
(1) A rebate may be granted for a period of three consecutive years from the year of assessment in which a company or limited liability partnership first commences operation, in an amount equivalent to its operating or capital expenditure which it has incurred limited to a maximum amount of twenty thousand ringgit for each year of assessment.
(2) Where the total amount of the rebate under subsection (1) exceeds the income tax charged (before any such rebate) for any year of assessment, the excess shall not be paid to the company or limited liability partnership, or be available as credit to set off the tax liability of the company or limited liability partnership for that year of assessment or any subsequent year.
(3) The company or limited liability partnership referred to in subsection (1) shall be a company or limited liability partnership resident and incorporated or registered in Malaysia:
(a) which ha
7 PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-7. Residence: individuals.
(1) For the purposes of this Act, an individual is resident in Malaysia for the basis year for a particular year of assessment if:
(a) he is in Malaysia in that basis year for a period or periods amounting in all to one hundred and eighty-two days or more;
(b) he is in Malaysia in that basis year for a period of less than one hundred and eighty-two days and that period is linked by or to another period of one hundred and eighty-two or more consecutive days (hereinafter referred to in this paragraph as such period) throughout which he is in Malaysia in the basis year for the year of assessment immediately preceding that particular year of assessment or in that basis year for the year of assessment immediately following that particular year of assessment:
Provided that any temporary absence from Malaysia:
(i) connected with his service in Malaysia and owing to servic
8 PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-8. Residence: companies and bodies of persons.
(1) For the purposes of this Act:
(a) a Hindu joint family is resident in Malaysia for the basis year for a year of assessment if its manager or karta is resident for that basis year;
(b) a company or a body of persons (not being a Hindu joint family) carrying on a business or businesses is resident in Malaysia for the basis year for a year of assessment if at any time during that basis year the management and control of its business or of any one of its businesses, as the case may be, are exercised in Malaysia; and
(c) any other company or body of persons (not being a Hindu joint family) is resident in Malaysia for the basis year for a year of assessment if at any time during that basis year the management and control of its affairs are exercised in Malaysia by its directors or other controlling authority.
(1A) Notwithstanding subsection (1), for the purpose
9 PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-9. [Deleted by Act A226: s.5].
[Deleted by Act A226: s.5] .
10 PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-10. [Deleted by Act A226: s.5].
[Deleted by Act A226: s.5] .
11 PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-11. [Deleted by Act 624: s.6].
[Deleted by Act 624: s.6] .
12 PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-12. Derivation of business income in certain cases.
(1) Where for the purposes of this Act it is necessary to ascertain any gross income of a person derived from Malaysia from a business of his, then:
(a) subject to subsection (2), so much of the gross income from the business as is not attributable to operations of the business carried on outside Malaysia shall be deemed to be derived from Malaysia;
(b) notwithstanding paragraph (a) , if the business consists wholly or partly of the manufacturing, growing, mining, producing or harvesting in Malaysia of any article, product, produce or other thing:
(i) the gross income from any sale of the article, product, produce or other thing taking place outside Malaysia in the course of carrying on the business; or
(ii) where the article, product, produce or other thing is exported in the course of carrying on the business and subparagraph (i) does not apply, an amount equal to th
13 PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-13. General provisions as to employment income.
(1) Gross income of an employee in respect of gains or profits from an employment includes:
(a) any wages, salary, remuneration, leave pay, fee, commission, bonus, gratuity, perquisite or allowance (whether in money or otherwise) in respect of having or exercising the employment;
(b) an amount equal to the value of use or enjoyment by the employee of any benefit or amenity (not being a benefit or amenity convertible into money) provided for the employee by or on behalf of his employer, excluding:
(i) a benefit or amenity consisting of medical or dental treatment or a benefit for child care;
(ii) a benefit or amenity consisting of:
(A) leave passages including meals and accommodation for travel within Malaysia not exceeding three times in any calendar year; or
[Am. by Act 661: s.8]
(B) one leave passage for travel betwe
13A PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-13A. [Deleted by Act 293: s.8].
[Deleted by Act 293: s.8] .
14 PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-14. General provisions as to dividend income.
(1) Subject to this section, where a company resident for the basis year for a year of assessment pays, credits or distributes a dividend in the basis period for that year of assessment, the dividend shall be deemed to be derived from Malaysia.
(2) Where a company resident for the basis year for a year of assessment was not resident for the basis year for the year of assessment immediately preceding that year of assessment, only dividends paid, credited, or distributed by the company on or after the day on which the management and control of any business of the company (or, in the case of a company which does not carry on a business, the management and control of its affairs by its directors or other controlling authority) were first exercised in Malaysia in that first-mentioned basis year shall be deemed to be derived from Malaysia.
(3) Where:
(a) the management and control of the business of a company (or
15 PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-15. Derivation of interest and royalty income in certain cases.
[Am. Act A158; A451]
Gross income in respect of interest or royalty shall be deemed to be derived from Malaysia:
(a) if responsibility for payment of the interest or royalty lies with the Government, a State Government or a local authority;
[Am. by Act 693/2009: s.8]
(b) (i) if responsibility for payment of the interest or royalty in the basis year for a year of assessment (the responsibility of any guarantor being disregarded in the case of interest) lies with a person who is resident for that basis year; and
(ii) in the case of interest it is payable in respect of money borrowed by that person and employed in or laid out on assets used in or held for the production of any gross income of that person derived from Malaysia or the debt in respect of which the interest is paid is secured by any property or asset situated in Malaysia; or
15A PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-15A. Derivation of special classes of income in certain cases.
Gross income in respect of:
(a) amounts paid in consideration of services rendered by a person or his employee in connection with the use of property or rights belonging to, or the installation or operation of any plant, machinery or other apparatus purchased from, such person;
(b) amounts paid in consideration of technical advice, assistance or services rendered in connection with technical management or administration of any scientific, industrial or commercial undertaking, venture, project or scheme;
(c) rent or other payments made under and agreement or arrangement for the use of any moveable property
shall be deemed to be derived from Malaysia:
(i) if responsibility for payment of the above or other payments lies with the Government, a State Government or a local authority;
[(i) Am. by Act 693/2009: s.9]
(ii) if respo
15B PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-15B. Derivation of gains or profits in certain cases.
Gross income in respect of gains or profits to which paragraph 4(f) applies shall be deemed to be derived from Malaysia:
(a) if responsibility for the payment of such gains or profits lies with the Government, a State Government or a local authority;
(b) if responsibility for the payment of such gains or profits lies with a person who is a resident for that basis year; or
(c) if the payment of such gains or profits is charged as an outgoing or expense in the accounts of a business carried on in Malaysia.
[Ins. by Act 693/2009: s.10]
15C PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-15C. Derivation of gains or profits from the disposal of capital assets deriving value from real property in Malaysia.
(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:
P
16 PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-16. Voluntary pensions, etc.
Where any pension or other periodical payment is paid voluntarily to any person who has permanently ceased to exercise an employment (or to that person's widow or widower, child, relative or dependant) by his former employer or the successor of his former employer, there shall be deemed to be a source of that person or of that person's widow or widower, child, relative or dependant, as the case may be, in respect of that pension or payment and that pension or payment shall be deemed to be gross income from that source chargeable to tax.
[Am. by Act 719/2011]
17 PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX-17. Derivation of pensions, etc.
(1) Gross income in respect of a pension from the Government or a State Government shall be deemed to be derived from Malaysia.
(2) Where:
(a) a person has a right to a pension or other like payment:
(i) from a pension fund or a fund of a similar kind; or
(ii) under a pension scheme or a scheme of a similar kind; or
(iii) by virtue of his membership of a pension society or a society of a similar kind; and
(b) the forum of the administration of the fund, scheme or society is in Malaysia at any time in the basis year for a year of assessment,
the gross income for the basis period for that year of assessment in respect of the pension or other like payment shall be deemed to be derived from Malaysia.
(3) The gross income for the basis period for a year of assessment from any source of the kind mentioned in section 16 or in
18 PART III ASCERTAINMENT OF CHARGEABLE INCOME Chapter 1 - Preliminary-18. Interpretation of Part III.
In this Part, unless the context otherwise requires:
"agriculture" means any form of cultivation of crops, animal farming, aquaculture, inland fishing and any other agricultural or pastoral pursuit; "cargo" includes mail, currency, specie, livestock and all kinds of goods;
"carned income" [Deleted by Act A471: s.4]
"crops" includes any form of vegetable produce;
"defined value" , in relation to living accommodation provided for an employee by or on behalf of his employer, means:
(a) where the accommodation is not affected by any written law providing for the restriction or control of rents and the person so providing the accommodation holds the accommodation on lease the rent which is or would have been paid if the accommodation is or had been unfurnished and the lessor and lessee were inde
19 PART III ASCERTAINMENT OF CHARGEABLE INCOME Chapter 1 - Preliminary-19. Supplementary provisions for the interpretation of Part III.
(1) A period overlaps another period for the purposes of this Part if:
(a) it begins before and ends in or at the same time as or after that other period; or
(b) it begins at the same time as or during that other period and ends after that other period.
(2) For the purposes of this Part, an individual and a wife of his shall be treated as living together unless:
(a) they are separated under an order of a court or under a deed of separation or a written agreement for separation; or
(b) they are in fact separated in such circumstances that the separation is likely to be permanent.
(3) Where:
(a) it is necessary for the purposes of Chapter 4 to ascertain the amount of any interest, rent or any payment of any other kind which is payable for the basis period (or for a part of the basis period
20 Chapter 2 - Basis Years and Basis Periods-20. Basis years.
For the purposes of this Act, the calendar year coinciding with a year of assessment shall constitute the basis year for that year of assessment.
21 Chapter 2 - Basis Years and Basis Periods-21. Basis period of a person other than a company, limited liability partnership, trust body or co-operative society.
The basis year for a year of assessment shall constitute, in relation to a source of a person other than a company, limited liability partnership, trust body or co-operative society, the basis period for that year of assessment.
[Am. by Act 755 of the year 2013]
21A Chapter 2 - Basis Years and Basis Periods-21A. Basis period of a company, limited liability partnership, trust body or co-operative society.
(1) Except as provided in this section, the basis year for a year of assessment shall constitute, in relation to a source of a company, limited liability partnership, trust body or co-operative society, the basis period for that year of assessment.
(2) Subject to subsections (5) and (6), where a company, limited liability partnership, trust body or co-operative society has made up the accounts of its operations for a period of twelve months ending on a day other than 31 December in the basis year, that period shall constitute the basis period for that year of assessment for any of its sources of income.
(3) Where the company, limited liability partnership, trust body or co-operative society has made up the accounts of its operations for a period of twelve months ending on a day in a basis year and there is a failure to make up the accounts of the company, limited liability partnership, trust body or cooperative society ending on the cor
22 Chapter 3 - Gross Income-22. Gross income generally.
(1) Subject to this Act, the gross income of a person from a source of his for the basis period for a year of assessment shall be the gross income from that source for that period ascertained in accordance with the following provisions of this Chapter (that person and that period being referred to in those provisions as the relevant person and the relevant period respectively).
(2) Subject to this Act, the gross income of a person from a source of his for the basis period for a year of assessment shall include any sums receivable or deemed to have been received for that basis period in relation to that source by way of:
(a) insurance, indemnity, recoupment, recovery, reimbursement or otherwise:
(i) where such sums are in respect of the kind of outgoings and expenses deductible in ascertaining the adjusted income of that person from that source; or
(ii) under a contract of indemnity; and
23 Chapter 3 - Gross Income-23. Interpretation of sections 24 to 28.
For the purposes of sections 24 to 28:
(a) a reference to a debt is a reference to a debt in a liquidated sum (whether or not due or due and payable);
(b) a dividend deemed to be derived from Malaysia by virtue of section 14 shall be treated as paid on the day on which cash or its equivalent (whether in the form of a voucher, cheque or otherwise) in respect of the dividend is posted or delivered by or on behalf of the payer, and as distributed in specie on the day on which it is posted or delivered by or on behalf of the distributor;
(c) where any tax or foreign tax has been deducted in paying, crediting or distributing any gross income, then, with respect to that gross income, any reference in those sections to gross income paid, credited or received shall be taken to mean the amount of that gross income before the deduction;
(d) where any dividend deemed to be derived fr
24 Chapter 3 - Gross Income-24. Basis period to which gross income from a business is related.
(1) Where in the relevant period a debt owing to the relevant person arises in respect of:
(a) any stock in trade sold in or before the relevant period in the course of carrying on a business;
[(a) Am. by Act 761 of the year 2014]
(aa) any stock in trade parted with by any element of compulsion including on requisition or compulsory acquisition or in a similar manner, in or before the relevant period;
[(aa) Ins. by Act 761 of the year 2014]
(b) any services rendered at any time in the course of carrying on a business; or
(c) the use or enjoyment of any property dealt with at any time in the course of carrying on a business,
the amount of the debt shall be treated as gross income of the relevant person from the business for the relevant period.
(2) Where in the relevant period any st
25 Chapter 3 - Gross Income-25. Basis period to which gross income from an employment is related.
(1) Subject to subsection (1A), or (2A) where gross income from an employment:
[Am. by Act 693/2009: s.11]
(a) is not receivable in respect of any particular period; and
(b) first becomes receivable in the relevant period,
it shall when received be treated as gross income of the relevant person for the relevant period.
(1A) The gross income from an employment in respect of any right to acquire shares in a company of the kind to which paragraph 13(1) (a) applies, shall where the right is exercised, assigned, released or acquired in the relevant period be treated as gross income of the relevant person for that relevant period.
[(1A) Am. by P.U.(B) 62/2009]
(2) Subject to section 3 and subsection (2A) and (5), where gross income from an employment is receivable in respect of the whole of the relevant pe
26 Chapter 3 - Gross Income-26. Basis period to which gross income in respect of dividend is related.
(1) Subject to subsection (2) , where gross income from a source consists of a dividend deemed to be derived from Malaysia by virtue of section 14, all gross income from that source paid, credited or distributed in the relevant period shall be taken to be gross income of the relevant person for the relevant period:
Provided that, where this section has applied to a dividend which has been credited, it shall not apply to that dividend when paid.
(2) In relation to gross income to which subsection (1) applies, where the relevant period overlaps the basis period for the immediately preceding year of assessment, the gross income in relation to the part of the relevant period which overlaps that basis period shall not be taken to be the gross income of the relevant person for the relevant period.
27 Chapter 3 - Gross Income-27. Basis period to which gross income in respect of interest, etc, is related.
(1) Subject to this section where gross income from a source in Malaysia of the relevant person:
(a) consists of any interest, discount, rent or royalty or of any pension, annuity or other periodical payment to which paragraph 4 (e) applies; and
(b) first becomes receivable in the relevant period,
(1A) Where gross income from a source in Malaysia of a company consists of any amount of discount or premium from the subscription or issuance of bond, as the case may be, and first becomes receivable in the relevant period, that amount shall be deemed to over the whole period of the bond and the gross income of the company for the relevant period that relates to the period of the bond shall be a sum to be determined in accordance with the following formula:
28 Chapter 3 - Gross Income-28. Basis period to which gross income not provided for by sections 24 to 27 is related.
Subject to this Act, where in the relevant period there is received by the relevant person from a source any gross income to which sections 24 to 27 do not apply, the amount of that income (or, where the income consists of something having a market value, the amount of its market value at the time of its receipt) shall be treated as gross income of the relevant person from that source for the relevant period.
29 Chapter 3 - Gross Income-29. Basis period to which income obtainable on demand is related.
(1) Notwithstanding anything in sections 23 to 28, where the circumstances are such that the relevant person is entitled to any gross income (other than gross income to which section 24 or 26 applies) accruing in or derived from Malaysia and is able to obtain the receipt thereof on demand, that gross income shall be treated as being received by him at the time those circumstances arise.
(2) The reference in subsection (1) to gross income the receipt of which the relevant person is able to obtain on demand includes a reference to gross income the receipt of which he would be able to obtain on demand but for the fact that it is lawfully receivable by a receiver of any kind.
(3) For the purposes of this section, where gross income from a source in Malaysia of the relevant person consists of interest that relates to a loan:
(a) between persons one of whom has control over the other;
[(
30 Chapter 3 - Gross Income-30. Special provisions applicable to gross income from a business.
(1) Where a deduction has been made under section 34(2) in ascertaining the adjusted income of the relevant person from a business for the basis period for a year of assessment, that basis period being prior to the relevant period, then:
(a) if the deduction has been made in respect of a debt estimated to have become wholly irrecoverable, any sum recovered on account of the debt by that person in the relevant period shall be treated as gross income of the relevant person from the business for the relevant period; and
(b) if the deduction has been made in respect of a debt estimated to have become partly irrecoverable and there has been received by that person in respect of the debt a sum (or an aggregate of sums) in excess of the amount of that part of the debt not estimated to have become irrecoverable, so much of that excess as is recovered by him in the relevant period shall be treated as gross income o
31 Chapter 3 - Gross Income-31. [Deleted by Act 624: s.9].
[Deleted by Act 624: s.9] .
32 Chapter 3 - Gross Income-32. Special provisions applicable to gross income from an employment.
(1) Where in the relevant period there has been the use or enjoyment by the relevant person of any benefit or amenity of the kind to which paragraph 13(1) (b) applies, the amount in respect thereof to be included in his gross income from the employment for the relevant period shall be an amount equal to the value of that use or enjoyment as ascertained by whatever method is just and reasonable in the circumstances.
(1A) (a) Where in the relevant period a relevant person acquired any right to acquire shares in a company of the kind to which paragraph 13(1) (a) applies, under his name or in the name of his nominee or agent, the amount in respect thereof to be included in his gross income from the employment shall be:
(i) the market value of the shares where the right shall be exercised, assigned, released or acquired on a specified date or where the right shall be exercised, assigned, released or acqui
33 Chapter 4 - Adjusted Income and Adjusted Loss-33. Adjusted income generally.
(1) Subject to this Act, the adjusted income of a person from a source for the basis period for a year of assessment shall be an amount ascertained by deducting from the gross income of that person from that source for that period all outgoings and expenses wholly and exclusively incurred during that period by that person in the production of gross income from that source, including:
(a) subject to subsection (2), any sum payable for that period (or for any part of that period) by way of interest upon any money borrowed by that person and:
(i) employed in that period in the production of gross income from that source; or
(ii) laid out on assets used or held in that period for the production of gross income from that source;
(b) rent payable for that period (or for any part of that period) by that person in respect of any land or building or part thereof occupied b
34 Chapter 4 - Adjusted Income and Adjusted Loss-34. Special provisions applicable to adjusted income from a business.
(1) In ascertaining the adjusted income of a person from a business for the basis period for a year of assessment, deductions shall be made from the gross income from the business for that period in accordance with the following subsections (the person, business, period and gross income in question being referred to in those subsections as the relevant person, the business, the relevant period and the relevant gross income respectively).
(2) There shall be deducted in the case of any debt as defined in subsection (3):
(a) if at the end of the relevant period the debt is reasonably estimated in all the circumstances of the case to be wholly irrecoverable, an amount equal to the amount of the debt;
(b) if at the end of the relevant period the debt is reasonably estimated in all the circumstances of the case to be partly irrecoverable, an amount equal to so much of the debt as is estimated to be irrec
34A Chapter 4 - Adjusted Income and Adjusted Loss-34A. Special deduction for research expenditure.
(1) Subject to this section, in ascertaining the adjusted income of a person resident in Malaysia from a business for the basis period for a year of assessment, a deduction shall be made, as specified in subsection (4), from the gross income from the business for that period in respect of expenditure, not being capital expenditure incurred on plant, machinery, fixtures, land, premises, buildings, structures or works of a permanent nature or on alterations, additions or extensions thereof or in the acquisition of any rights in or over any property, incurred by that person during that period on research and development approved by the Minister and the amount of expenses on research and development incurred during that period outside Malaysia shall not be more than thirty per cent of the total expenses on research and development incurred by that person.
[(1) Am. Act 693:s.14; Am. Act 812:s.8; Am. Act 831:s.8]
34B Chapter 4 - Adjusted Income and Adjusted Loss-34B. Special deduction for contribution to an approved research institute or payment for use of services of an approved research institute or company.
(1) Subject to this section, in ascertaining the adjusted income of a person resident in Malaysia from a business for the basis period for a year of assessment, a deduction shall be made, as specified in subsection (2), from the gross income from the business for that period in respect of expenditure, not being capital expenditure, incurred by that person during that period in respect of:
[(1) Am. Act 831:s.9]
(a) contribution in cash to an approved research institute;
(b) payment for the use of the services of an approved research institute or an approved research company; or
(c) payment for the use of the services of a research and development company or a contract research and development company.
(2) The amount of deduction to be made under subsection (1) shall be twice the amount of expenditure, not being capital expenditure, referr
34C Chapter 4 - Adjusted Income and Adjusted Loss-34C. Special provision applicable to adjusted income from a discount or premium.
(1) Notwithstanding section 33 but subject to this section, in ascertaining the adjusted income of a company from a source consisting of discount or premium, any expenses in respect of the discount or premium incurred on bond issued or subscribed, as the case may be, by that company is deemed to accrue to the company over the whole period of the bond and the amount to be deducted from the gross income from that source for the basis period for a year of assessment that relates to the period of the bond shall be a sum to be determined in accordance with the following formula:
A x C 34D Chapter 4 - Adjusted Income and Adjusted Loss-34D. Special deduction for expenditure on treasury shares.
(1) Notwithstanding section 33 but subject to this section, in ascertaining the adjusted income of a company from a business for the basis period for a year of assessment, a deduction shall be made from the gross income for that period any expenses incurred by that company in acquiring treasury shares.
(2) The amount of deduction referred to in subsection (1):
(a) shall be the cost of acquiring the treasury shares which are transferred to its employee less any amount payable by that employee for such treasury shares; and
(b) shall be allowed in the basis period for a year of assessment where the employee exercised his rights to acquire such treasury shares.
(3) For the purpose of subsection (2), the cost of acquiring treasury shares which are transferred to its employee shall be determined on the basis that the treasury shares acquired by the company at an earlier point in tim
35 Chapter 4 - Adjusted Income and Adjusted Loss-35. Stock in trade.
(1) Notwithstanding any other provision of this Part, in ascertaining the adjusted income of a person from a business for the basis period for a year of assessment, the value of the stock in trade of the business at the beginning and at the end of that period shall be taken into account in accordance with the following subsections (that person, business, period and stock in trade being referred to in those subsections as the relevant person, the business, the relevant period and the stock respectively).
(2) Where the value of the stock at the end of the relevant period exceeds the value of the stock at the beginning of the relevant period, the total of all amounts otherwise deductible under this Act in ascertaining the adjusted income of the relevant person from the business for the relevant period shall be reduced by the amount of the excess; and, where the value of the stock at the beginning of the relevant period exceeds the value of the sto
36 Chapter 4 - Adjusted Income and Adjusted Loss-36. Power to direct special treatment in the computation of business income in certain cases.
(1) Notwithstanding any other provision of this Part, where the Director General is satisfied that there is a need for some treatment in computing:
(a) the gross income from a business with respect to:
(i) a hire-purchase transaction;
(ii) a transaction under which a debt is payable by instalments;
(iii) a lease transaction in respect of moveable property;
(iv) any other transaction involving a debt or stock in trade; or
(v) such other transaction as may be prescribed; and
(b) the adjusted income and statutory income from the business,
he may give directions and formulate regulations to be published in the gazette for special treatment with respect to any such transaction, either in relation to a particular business or in relation to any business having any such transaction:
Provided that no such direc
37 Chapter 4 - Adjusted Income and Adjusted Loss-37. [Deleted by Act 624: s.10].
[Deleted by Act 624: s.10] .
38 Chapter 4 - Adjusted Income and Adjusted Loss-38. Special provisions applicable to adjusted income from an employment.
(1) Subject to this section:
(a) where an employee's gross income from an employment includes for the basis period for a year of assessment any amount ascertained in accordance with subsection 32(1) in respect of any benefit or amenity consisting of furniture provided by or on behalf of his employer in conjunction with living accommodation, there may be deducted from that gross income the amount of any rent payable by that employee for that period for that accommodation and furniture, less the amount of any deduction made in respect of that rent under paragraph (b) ; and
(b) where an employee's gross income from an employment includes for the basis period for a year of assessment any amount ascertained in accordance with subsection 32(2) or (3) in respect of living accommodation provided by or on behalf of his employer, there may be deducted from that gross income expenses of the following kind:
38A Chapter 4 - Adjusted Income and Adjusted Loss-38A. Limitation on deduction of entertainment expenses.
Where an employee's gross income from an employment under subsection 13(1) includes for the basis period for a year of assessment any entertainment allowance, the amount of expenses deductible under subsection 33(1) in respect of entertainment by the employee, shall not exceed the amount of such entertainment allowance included in that gross income.
39 Chapter 4 - Adjusted Income and Adjusted Loss-39. Deductions not allowed.
(1) Subject to any express provision of this Act, in ascertaining the adjusted income of any person from any source for the basis period for a year of assessment no deduction from the gross income from that source for that period shall be allowed in respect of:
(a) domestic or private expenses;
(b) any disbursements or expenses not being money wholly and exclusively laid out or expended for the purpose of producing the gross income;
(c) any capital withdrawn or any sum employed or intended to be employed as capital;
(d) any amount in respect of any payment to any pension, provident, savings, widows, widowers and orphans or other similar fund or society which is not an approved scheme;
[(d) Am. by Act 719/2011]
(e) any expenditure incurred in relation to a business, being expenditure which is:
(i) qualifyi
40 Chapter 4 - Adjusted Income and Adjusted Loss-40. Adjusted loss.
Subject to this Act, where but for an insufficiency of gross income of a person from a business for the basis period for a year of assessment there would have been an amount of adjusted income of that person from the business for that period, the amount by which the total of all such deductions as would then have been allowed under the foregoing provisions of this Chapter in ascertaining that adjusted income exceeds his gross income from the business for that period shall be taken to be the amount of his adjusted loss from the business for that period.
41 Chapter 4 - Adjusted Income and Adjusted Loss-41. Ascertainment of adjusted income or adjusted loss from a business for an accounting period.
(1) Subject to this section, where for the purposes of this Act it is necessary to ascertain the adjusted income or adjusted loss of a person from a business for the basis period for a year of assessment (that basis period being in this section referred to as the relevant period) and accounts of the business have not been made up for the relevant period:
(a) that person's adjusted income or adjusted loss from the business shall be ascertained for any accounting period for which accounts of the business have been made up (being a period which either falls into or overlaps the relevant period) by applying Chapters 3 and 4, whenever and as often as may be necessary, as if that accounting period were the basis period for that year of assessment;
(b) such apportionment of the adjusted income or adjusted loss for any such accounting period, and such aggregation of the adjusted income or adjusted loss for any suc
42 Chapter 5 - Statutory Income-42. Statutory income.
(1) Subject to this Act, the statutory income (if any) of a person from a source for a year of assessment (that year of assessment being in this section referred to as the relevant year) shall consist of:
(a) the amount of his adjusted income (if any) from that source for the basis period for the relevant year; and
(b) the amount of:
(i) any balancing charge or the aggregate amount of the balancing charges;
(ii) any agriculture charge or the aggregate amount of the agriculture charges; and
(iii) any forest charge or the aggregate amount of the forest charges,
falling to be made for the relevant year under Schedule 3 in relation to that source,
reduced by the amount of any allowance or the aggregate amount of the allowances falling to be made for the relevant year under that Schedule in relation to that source.
(2) Whe
43 Chapter 6 - Aggregate Income and Total Income-43. Aggregate income.
(1) Subject to this Act, the aggregate income of a person for a year of assessment (that person and year of assessment being in this section referred to as the relevant person and the relevant year respectively) shall consist of:
(a) the aggregate of his statutory income, if any, for the relevant year from each of his sources consisting of a business, reduced by any deduction falling to be made for the relevant year pursuant to subsection (2);
(b) the aggregate of his statutory income, if any, for the relevant year from each of his other sources; and
(c) any additions falling to be made for the relevant year pursuant to Schedule 4.
(2) Subject to subsections (3) and (5), there shall be deducted under paragraph (1) (a) pursuant to this subsection from the aggregate of the relevant person's statutory income from each of his sources consisting of a business for t
44 Chapter 6 - Aggregate Income and Total Income-44. Total income*.
(1) The total income of a person for a year of assessment (that person and year of assessment being in this section referred to as the relevant person and the relevant year respectively) shall consist of the amount of his aggregate income for the relevant year reduced:
(a) first, by any deduction falling to be made for the relevant year pursuant to subsection (2);
(b) next, by any deduction falling to be so made pursuant to Schedule 4 or 4B;
(c) next, by any deduction falling to be so made pursuant to subsection (6) or (6A);
(d) next, by any deduction falling to be so made pursuant to subsection (8), (9), (10), (11), (11A), (11B), (11C) or (11D);
[(d) Am. Act 644:s.9; Am. Act 661:s.15; Am. Act A1349:s.2; Am. Act 823:s.8]
(e) next, by any deduction falling to be so made pursuant to section 44A; and
[(
44A Chapter 6 - Aggregate Income and Total Income-44A. Group relief for companies.
**(1) Subject to this section, a company (referred to in this section as a "surrendering company") may, for the basis period for three consecutive years of assessment, surrender not more than seventy per cent of its adjusted loss in the basis period of a year of assessment to one or more related companies (referred to in this section as a "claimant company"):
[Am. by Act 693/2009: s.17, Am. Act 812:s.12]
Provided that the surrendering company and the claimant company shall be resident in the basis year for that year of assessment and incorporated in Malaysia.
(1A) For the purpose of subsection (1), the basis period for three consecutive years of assessment commences:
(a) immediately following the basis period for a year of assessment the surrendering company first commences operation, provided that the basis period consists of a period of twelve months; or
(b)
44B Chapter 7 - Chargeable Income-44B. Carry-back losses.
(1) In this section:
"adjusted loss" means the amount or aggregate amount of the adjusted loss of a person from a source of his or the excess of that amount for the basis period for a year of assessment as ascertained under subsection 44(4) or 44(5);
"defined aggregate income", in relation to a year of assessment, means the aggregate income of the person for that year reduced by any deduction made pursuant to paragraphs (a) , (b) , (c) , (d) , and (e) of subsection 44(1);
"immediately preceding", in relation to a year of assessment, means:
(a) for the year of assessment 2009, the year of assessment 2008; and
(b) for the year of assessment 2010, the year of assessment 2009.
(2) Subject to subsection (6), this section shall apply if:
(a) the basis period of a person
45 Chapter 7 - Chargeable Income-45. Chargeable income and aggregation of husband's and wife's income.
(1) Subject to this section, the chargeable income of a person for a year of assessment shall be his total income for that year less any deductions allowed by this Chapter for that year.
(2) Subject to this section, where an individual and his wife were living together in the basis year for a year of assessment and did not in that basis year cease to live together or to be husband and wife of each other:
(a) the wife may elect in writing (wife who elects) that her total income shall be aggregated with the total income of her husband and assessed in his name for that year of assessment; or
(b) the husband may elect in writing (husband who elects) that his total income shall be aggregated with the total income of his wife and assessed in her name for that year of assessment:
Provided that where the wife who elects or the husband who elects is not resident for the basis year for a year of asse
45A Chapter 7 - Chargeable Income-45A. Deduction for husband.
(1) Where:
(a) the husband has no source of income; or
(b) the husband has no total income which can be aggregated with that of his wife;
(c) an election has been made by the husband under paragraph 45(2) (b) ,
there shall be allowed to the wife, for a year of assessment, in addition to the allowances or deductions (if any) to that wife under sections 46, 48 and 49, a deduction of four thousand ringgit for the husband and a further five thousand ringgit if he is a disabled person:
[Am. Act 773:s.11; Am. Act 831:s.13]
Provided that this section shall only apply to one wife.
(2) This section shall not apply where, in relation to paragraph (1)(b), the husband, other than a husband who is a disabled person, has an income which is derived from sources outside Malaysia and his gross income from those sources for a year o
46 Chapter 7 - Chargeable Income-46. Deduction for individual and Hindu joint family.
(1) In the case of an individual or a Hindu joint family resident for the basis year for a year of assessment, there shall be allowed for that year of assessment personal deductions of:
(a) nine thousand ringgit for that individual in respect of himself and his dependent relatives (if any), or for that Hindu joint family;
[(a) Am. by Act 702/2010: s.5]
(b) [Deleted by Act 600: s.5] .
(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-
46A Chapter 7 - Chargeable Income-46A. [Deleted by Act 683: s.13].
[Deleted by Act 683: s.13] .
46B Chapter 7 - Chargeable Income-46B. Deduction for individual on interest expended.
(1) Subject to this section, in the case of an individual who is a citizen and resident for the basis year for the relevant year, there shall be allowed for that relevant year personal deduction in respect of interest expended in that basis year by the individual to finance the purchase of a residential property:
Provided that:
(a) the purchase of the residential property is limited to only one unit;
(b) the Sale and Purchase Agreement for the purchase has been executed on or after 10 March 2009 but not later than 31 December 2010; and
(c) the individual has not derived any income in respect of that residential property.
(2) Subject to subsection (3), there shall be allowed to that individual a deduction for a maximum amount of ten thousand ringgit for each basis year for a year of assessment for a period of three consecutive basis years beginning from the bas
47 Chapter 7 - Chargeable Income-47. Deduction for wife or former wife.
(1) In the case of an individual resident for the basis year for a year of assessment who in that basis year had a wife living together with him, there shall, subject to subsections (3) and (4), be allowed for that year of assessment a deduction of:
(a) four thousand ringgit, for the wife; and
(b) a further five thousand ringgit for the wife if she is a disabled person.
[(b) Am. Act 639:s.11; Am. Act 831:s.15]
(2) In the case of an individual resident for the basis year for a year of assessment who in that basis year:
(a) made payments to a wife of his by way or in the nature of alimony pendente lite;
(b) made payments by way of alimony or maintenance (in pursuance of an order of a court or otherwise) to a former wife whose marriage with him was dissolved or annulled (by a court or otherwise) in accordance w
48 Chapter 7 - Chargeable Income-48. Deduction for children.
(1) Subject to this section, where an individual who is resident for the basis year for a year of assessment:
(a) pays (wholly or in part) in that basis year for the maintenance at any time in that basis year of an unmarried child who at any time in that basis year is under the age of eighteen years;
(b) pays (wholly or in part) in that basis year:
(i) for the maintenance at any time in that basis year of an unmarried child who at any time in that basis year is receiving full-time instruction at any university, college, school or other similar educational establishment; or
(ii) for that instruction;
(c) pays (wholly or in part) in that basis year for the maintenance at any time in that basis year of an unmarried child (in subparagraphs (i) to (ii) referred to as the child) who at any time in that basis year is serving under articles or indentures
49 Chapter 7 - Chargeable Income-49. Deduction for insurance premiums.
(1) Subject to this section, in the case of an individual resident for the basis year for a year of assessment who in that basis year has:
(a) paid any premium for any insurance;
[(1)(a) Am. by Act 719/2011; Act 742/2012]
(b) not exceeding four thousand ringgit, in respect of contribution to approved scheme (other than a private retirement scheme) made or suffered by that individual who is an employee or a self-employed person within the meaning of the Employees Provident Fund Act 1991 [Act 452] , or a pensionable officer within the meaning of section 2 of the Pensions Act 1980; or
[(b) Am. Act 833:s.10]
(c) made or suffered the making of any contribution under any written law relating to widows', widowers and orphans' pensions or under any approved scheme within the meaning of any such law,
[(1)(c) Am.
50 Chapter 7 - Chargeable Income-50. Application of section 49 where husband and wife are living together.
(1) Where an individual who is resident for the basis year for a year of assessment has a wife living together with him at any time in that basis year, and they did not in that basis year:
(a) cease to live together; or
(b) cease to be husband and wife of each other,
the application of section 49 to that individual shall be subject to this section.
(2) Any premium for any insurance or deferred annuity within the meaning of subsection 49(3), or for any insurance on education or medical benefits within the meaning of subsection 49(4), which has been paid by the wife or the husband in the year of assessment:
[(2) Am. by Act 719/2011]
(a) where subsection 45(2) applies, shall be deemed to have been paid by the husband of the wife who elects or by the wife of the husband who elects, as the case may be; or
(b)<
51 Chapter 7 - Chargeable Income-51. Deduction must be claimed.
Notwithstanding sections 47 to 50, no deduction shall be allowed under those sections in ascertaining the chargeable income of an individual for a year of assessment unless a claim has been made for that year for the deduction or for a deduction of a larger or smaller amount in respect of the same subject matter.
52 Chapter 8 - Special Cases-52. Modification of Part III in certain special cases.
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.
53 Chapter 8 - Special Cases-53. Trade associations.
(1) Where a trade association is resident for the basis year for a year of assessment:
(a) the total of the sums (other than sums forming part of any gross income of the association from any source other than the source created by this subsection) receivable on revenue account by the association for that basis year (including entrance fees and subscriptions) shall be deemed to be gross income for that basis year from a business of the association deemed to be carried on by the association; and
(b) that basis year shall be deemed to be the basis period for that year of assessment for that business.
(2) For the purposes of subsection (1):
(a) the gross income, adjusted income or adjusted loss and statutory income of a trade association relating to its transactions with its members shall be ascertained on the same principles as those on which its gross incom
53A Chapter 8 - Special Cases-53A. Club, association or similar institution.
(1) This section shall apply to a body of persons which carry on a club, association or similar institution other than a trade association to which section 53 applies.
(2) Any income of the body of persons from transaction with members and any outgoing or expenses or capital allowances attributable to such income shall be disregarded for the purpose of this Act.
(3) The gross income of a body of persons for the basis period for the year of assessment shall include the amount of gross income for that period from the investment made out of any of the fund of the body of persons.
(4) The body of persons shall maintain a separate account in respect of income derived from its members and non-members.
(5) Where the amount of outgoing or expenses to be allowed or capital allowances to be made to the body of persons are common to income from transaction with members and non-members, the amount of outgoing or expenses that shall
54 Chapter 8 - Special Cases-54. Sea and air transport undertakings.
(1) Where the business of a person consists partly of transporting passengers or cargo by sea or air and partly of other activities:
(a) the transport activities of that kind shall be deemed to constitute one business and source of that person and the other activities shall be deemed to constitute a separate and distinct business and source of that person; and
(b) the gross income and adjusted income or adjusted loss for the basis period for a year of assessment from the business consisting of those other activities, and the statutory income for that year of assessment from the business so consisting shall be ascertained in accordance with the provisions of the foregoing Chapters without modification by this section.
(2) (a) Subject to section 54A, where that person is resident for the basis year for a year of assessment, his gross income and adjusted income or adjusted loss f
54A Chapter 8 - Special Cases-54A. Exemption of shipping profits.
(1) Subject to the following subsections, where a person who is resident for the basis year for a year of assessment carries on the business of:
(a) transporting passengers or cargo by sea on a Malaysian ship; or
(b) letting out on charter a Malaysian ship owned by him on a voyage or time charter basis,
seventy per cent of the statutory income of that person for that year of assessment from that business shall be exempt from tax.
[(1) Am. by Act 742/2012]
(1A) Where subsection (1) applies, a person who is entitled to an allowance under Schedule 3 and who has not made any claim under paragraph 77 of that Schedule in respect of such allowance, the amount of such allowance shall be deemed to have been made to him for the purpose of ascertaining his statutory income under subsection (1);
[(1A) Ins. by Act 693/2009: s.20]
54B Chapter 8 - Special Cases-54B. [Deleted by Act 293: s.14].
[Deleted by Act 293: s.14] .
55 Chapter 8 - Special Cases-55. Partnerships generally.
(1) Subject to this section and sections 56 to 59, in the case of a business of a partnership (in this section referred to as the relevant partnership) and in relation to a person who is a partner in the relevant partnership throughout the period during which he was such a partner it shall for the purposes of this Act be postulated that:
(a) there has been a transfer to that person (in this section referred to as the sole proprietor) of the business and assets of the relevant partnership together with all rights and liabilities of the partners in relation thereto;
(b) the subject matter of the transfer constitutes a business (in this section and section 56 referred to as the proprietorship business) of the sole proprietor carried on by him in a manner similar to the way in which the relevant partnership business was carried on and in particular that the accounts of the relevant partnership business, made u
56 Chapter 8 - Special Cases-56. Successive partnerships.
(1) Where, apart from this section, the circumstances are such that:
(a) section 55 applies to a business of a partnership (in this section referred to as the old partnership), to a person (in this section referred to as the continuing partner) who is a partner therein and to the period during which he was such a partner,
(b) at some time after the commencement of that application, section 55 applies to a business of another partnership (in this section referred to as the new partnership) to a partner therein who is the continuing partner and to the period during which he was such a partner.
(c) those periods are successive periods;
(d) those businesses are substantially similar and to all intents and purposes (in so far as the continuing partner is concerned) are carried on successively as if they were one continuing business (apart from the assets of each of those partne
57 Chapter 8 - Special Cases-57. Provisions applicable where partnership is a partner in another partnership.
Where a partnership (in this section referred to as the subsidiary partnership) is a partner in another partnership (in this section referred to as the main partnership), then, in relation to a business of the main partnership:
(a) throughout any period that a person is a partner in the subsidiary partnership and the subsidiary partnership is a partner in the main partnership it shall be postulated that the person in question was a partner in the main partnership in place of the subsidiary partnership, and the adjusted income under subsection 55(5) or 56(8) (in this section referred to as the computed adjusted income) of that person for the basis period for a year of assessment as the sole proprietor from his proprietorship business or as continuing partner from his continuing proprietorship business, as the case may be, in relation to the main partnership shall be ascertained under section 55 or under section 55 in conjun
58 Chapter 8 - Special Cases-58. Income receivable by partnership otherwise than from partnership business.
(1) Where a partnership carries on or shares in the profits of a business and income is receivable by the partnership (not being income forming part of the gross income for the basis period for any year of assessment from any proprietorship business or continuing proprietorship business in relation to any partner in the partnership) from a source, then, whether or not the income has been distributed to the partners, sections 55, 56 and 57 shall apply (with any necessary modifications) for ascertaining the gross income and adjusted income for the basis period for a year of assessment from that source of each partner who is a partner in the partnership as they apply for ascertaining his gross income and adjusted income for the basis period for that year from the business.
(2) For the purposes of subsection (1), in the application of section 55 or section 55 in conjunction with section 56, as the case may be, the provisional adjusted income shall
59 Chapter 8 - Special Cases-59. Partnership losses.
(1) In the case of a sole proprietor of a proprietorship business or of a continuing partner of a continuing proprietorship business referred to in sections 55 and 56 respectively:
(a) the adjusted loss (in this section referred to as the provisional adjusted loss) of that proprietor or partner from that proprietorship or continuing proprietorship business for the basis period for a year of assessment shall be ascertained on the same principles as those on which his provisional adjusted income from the respective business would, but for that loss, have been ascertained under section 55 or under section 55 in conjunction with section 56, as the case may be;
(b) the divisible loss of that proprietorship or continuing proprietorship business, for the basis period for a year of assessment shall be found by the addition to the provisional adjusted loss of that sole proprietor or of that continuing partner, as t
60 Chapter 8 - Special Cases-60. Insurance business.
(1) This section shall apply for ascertaining the adjusted income for the basis period for a year of assessment from the insurance business of an insurer.
(2) For the purposes of this section:
(a) subject to paragraph (b) , where an insurer carries on life business in conjunction with general business, the life business and the general business shall be treated as separate insurance business;
(b) (i) where an insurer carries on inward re-insurance business, the inward re-insurance business and the general business (excluding the inward re-insurance business and off-shore insurance business) shall be treated as separate general businesses;
(ii) where an insurer carries on off-shore insurance business, the offshore insurance business and the general business (excluding the off-shore insurance business and inward re-insurance business) shall be treated as separate general b
60A Chapter 8 - Special Cases-60A. Inward re-insurance: chargeable income, reduced rate and exempt dividend.
(1) (a) Where an insurer carries on inward re-insurance business in conjunction with other insurance businesses, the part of the chargeable income for a year of assessment which is attributable to that inward reinsurance business shall consist of an amount which bears the same proportion to the chargeable income for that year of assessment of the insurer as the part of the aggregate income which relates to the inward re-insurance business bears to the whole of the aggregate income for that year of assessment from all sources of the insurer; and
(b) the amount arrived at under paragraph (a) shall be treated as his chargeable income for a year of assessment of an insurer from inward re-insurance business for the purposes of paragraph 3 of Part I of Schedule 1.
(2) As soon as any amount of chargeable income from the inward re-insurance business of an insurer (being a company) resident fo
60AB Chapter 8 - Special Cases-60AB. Chargeable income of life fund subject to tax.
The chargeable income in respect of the life fund as determined under subsections 60(3) and 60(4) is subject to tax as specified under Part VIII of Schedule 1.
60B Chapter 8 - Special Cases-60B. Offshore insurance: chargeable income, reduced rate and exempt dividend.
(1) (a) Where an insurer carries on off-shore insurance business in conjunction with other insurance businesses, the part of the chargeable income for a year of assessment which is attributable to that off-shore insurance business shall consist of an amount which bears the same proportion to the chargeable income for that year of assessment of the insurer as the part of the aggregate income which relates to the off-shore insurance business bears to the whole of the aggregate income for that year of assessment from all sources of the insurer; and
(b) the amount arrived at under paragraph (a) shall be treated as the chargeable income for a year of assessment of an insurer from offshore insurance business for the purposes of paragraph 3 of Part I of Schedule 1.
(2) As soon as any amount of chargeable income from the off-shore insurance business of an insurer (being a company) resident fo
60C Chapter 8 - Special Cases-60C. Banking business.
Where a person who is resident for the basis year for a year of assessment carries on a business of banking in Malaysia and elsewhere, his gross income and adjusted income or adjusted loss for the basis period for that year of assessment from that business and his statutory income for that year of assessment from that business shall be ascertained by reference to his income therefrom wherever accruing or derived excluding the gross income, adjusted income or adjusted loss and statutory income attributable to an offshore business activity of a licensed Malaysian offshore bank.
60D Chapter 8 - Special Cases-60D. [Deleted by Act 600: s.8].
[Deleted by Act 600: s.8] .
60E Chapter 8 - Special Cases-60E. [Deleted by Act 624: s.13].
[Deleted by Act 624: s.13] .
60F Chapter 8 - Special Cases-60F. Investment holding company.
(1) Where an investment holding company is resident for the basis year for a year of assessment there shall be deducted in arriving at the total income before any deduction falling to be made under paragraph 44(1) (c) an amount in respect of expenses incurred by that company in the basis period for that year of assessment, which amount shall be determined in accordance with the formula:
A x B < 4C 60FA Chapter 8 - Special Cases-60FA. Investment holding company listed on Bursa Malaysia*.
(1) The provisions of this section shall apply notwithstanding any other provisions of this Act. (2) Where an investment holding company is a company resident for the basis year for a year of assessment and listed on the Bursa Malaysia in the basis period for that year of assessment, income of that investment holding company from the holding of investment in that basis period shall be treated as gross income of that investment holding company from a source or sources consisting of a business for that year of assessment.
(3) For the purpose of subsection (2):
(a) in ascertaining for a year of assessment the adjusted income of an investment holding company from a source referred to in that subsection, any amount of deduction to be made under this Act in arriving at that income shall only be allowed against the gross income from that source but:
(i) where in that year of assessment that source doe
60G Chapter 8 - Special Cases-60G. Foreign fund management company.
(1) Where a foreign fund management company carries on business in Malaysia of providing fund management services to foreign and local investors, the income derived from the provision of fund management services to foreign investors shall be treated as a separate and distinct business source from that source of income derived from the provision of fund management services to local investors.
(2) The chargeable income in relation to the source consisting of the provision of fund management services to foreign investors for a year of assessment shall be the statutory income from that source reduced by any deduction falling to be made pursuant to subsection 43(2) relating to that source.
(3) The chargeable income in relation to the source or sources other than the source consisting of the provision of fund management services to foreign investors for a year of assessment shall be the statutory income from that source or the aggregate of th
60H Chapter 8 - Special Cases-60H. Closed-end fund company.
(1) This section shall apply to a closed-end fund company resident in Malaysia for the basis year for a year of assessment.
(2) Where a closed-end fund company receives an amount in respect of gains from the realisation of investments in the basis period for a year of assessment such amount shall be exempt from tax for that year of assessment.
(3) Paragraphs 5 and 6 of Schedule 7A shall apply, mutatis mutandis , to the amount exempted under subsection (2) and paragraph 35 of Schedule 6 (where applicable).
(4) In ascertaining the total income of a closed-end fund company for the basis period for a year of assessment there shall be deducted before any deduction falling to be made under paragraph 44(1) (c) an amount in respect of expenses incurred by that closed-end fund company during that period, which amount shall be determined in accordance with the formula:
[Subs. by Act 661: s.19]
(2) In this section, "unit trust" means a unit trust which is approved by the Securities Commission as Real Estate Investment Trust or Property Trust Fund.
62 Chapter 8 - Special Cases-62. Discretionary trusts.
(1) Where there is a discretionary trust, section 61 shall apply to the trust but shall be modified in its application by the following subsections.
(2) Subject to the following subsections, whether or not the trust body of a discretionary trust is resident for the basis year for a year of assessment:
(a) subject to paragraph (b) , the total of all sums received in Malaysia by a particular beneficiary of the trust (being sums of an income nature in his hands) in that basis year from the trust body of the trust or the total income of that body for that year of assessment, whichever is the less, shall be deemed to be the amount of that particular beneficiary's share of that total income; and
(b) where:
(i) that particular beneficiary is one of a class of beneficiaries of the trust;
(ii) that particular beneficiary has received in Malaysia and any other beneficiary
63 Chapter 8 - Special Cases-63. Trust annuities.
(1) This section shall apply where a person is entitled to an annuity payable under the terms of a trust (that annuity, that trust and the trust body of that trust being in this section referred to as the annuity, the trust and the trust body respectively).
(2) The amount of the annuity payable for the basis year (or for a part of the basis year) for a year of assessment shall be ascertained whenever necessary by applying subsection 19(3) as if references therein to Chapter 4 were references to this section and references to the basis period (or to a part thereof) for a year of assessment were references to the basis year (or to a part thereof) for a year of assessment; and, where two or more amounts are payable in respect of the annuity for the basis year (or for a part of the basis year) for a year of assessment, then, in the application of this section to that annuity, and reference to an amount payable in respect of that annuity shall be co
63A Chapter 8 - Special Cases-63A. Special deduction for qualifying capital expenditure.
(1) In ascertaining the statutory income of a unit trust from a source consisting of the derivation of rent from the lettering of real property for a year of assessment, there shall be deducted from the adjusted income from that source for that year of assessment an allowance made under subsection (2) in respect of qualifying capital expenditure.
(2) Where a unit trust has, for the purposes of deriving rent from the letting of real property, incurred qualifying capital expenditure in relation to an asset and at the end of the basis period for a year of assessment the unit trust was the owner of the asset and the asset was in use for that purpose, there shall be made to the unit trust in relation to that source for that year an allowance equal to one tenth of that expenditure:
Provided that where, by reason of an absence or insufficiency of adjusted income from that source for the basis period for that year of assessment, effect cannot b
63B Chapter 8 - Special Cases-63B. Special deduction for expenses.
(1) In ascertaining the total income of a unit trust for the basis period for a year of assessment, there shall be deducted before any deduction falling to be made under paragraph 44(1) (c) an amount in respect of expenses incurred by that unit trust during that period, which amount shall be determined in accordance with the formula:
A x B 4C
[(a) Am. by Act 755 of the year 2013]
Provided that the maximum sum to be deducted shall not exceed one-fourth of the audited net profits for that basis period of such co-operative society; and
(b) an amount equal to eight per cent (or such percentage as may be prescribe
65B Chapter 8 - Special Cases-65B. Incentive scheme.
(1) Where a person referred to in paragraph 6(1)(m) carries on a business in Malaysia in respect of a source consisting of a qualifying activity under an incentive scheme approved by the Minister, the business shall be treated as a separate and distinct business and source of that person.
(2) The chargeable income of a person in respect of the source consisting of the qualifying activity referred to in subsection (1), for a year of assessment shall be the statutory income from that source reduced by any amount of deduction falling to be made pursuant to subsection 43(2) relating to that source and so much of the amount which has not been deducted from that statutory income for the year of assessment the incentive scheme ends shall only be deductible in accordance with subsection 43(2) for a period of seven consecutive years of assessment.
(3) For the purposes of subsection (2), the period of seven consecutive years of assessment shall c
65C Chapter 9 - Gains or profits from the disposal of capital asset-65C. Interpretation of Chapter 9.
[Ins. by Act 851]
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).
65D Chapter 9 - Gains or profits from the disposal of capital asset-65D. Application of Chapter 9.
(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.
65E Chapter 9 - Gains or profits from the disposal of capital asset-65E. Gains or profits from the disposal of capital asset.
(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 who
65F Chapter 9 - Gains or profits from the disposal of capital asset-65F. Disposal and acquisition of capital asset.
(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)
66 PART IV PERSONS CHARGEABLE-66. Personal chargeability: general principle.
Where under this Act the income of any person is assessable and chargeable to tax, that person shall, subject to this Part, be the person assessable and chargeable to tax in respect of that income.
67 PART IV PERSONS CHARGEABLE-67. Vicarious responsibility and chargeability.
(1) Subject to this Part, the following subsections shall apply where by or under any of the following sections of this Part a person (in this section referred to as the representative):
(a) is appointed to be the agent of any other person;
(b) is assessable and chargeable to tax on behalf of any other person; or
(c) is a person in whose name another person is assessable and chargeable to tax,
any such other person being in this section referred to as the principal.
(2) The representative may require any person (including the principal, in so far as he is capable of complying with the requisition) who is in receipt or control of any income of the principal, and any person by whom any income is paid or payable to the principal, to supply to the representative full particulars of the income and any expenses connected therewith.
(3) Where the representati
68 PART IV PERSONS CHARGEABLE-68. Power to appoint agent.
(1) The Director General may, if he thinks fit, by notice in writing appoint any person to be the agent of any other person for all or any of the purposes of this Act; and, where any person is so appointed for all those purposes, he shall be assessable and chargeable to tax on behalf of that other person.
(2) An appointment made under subsection (1) may be revoked by the Director General at any time.
(3) Where a person appointed under subsection (1) to be the agent of another person is aggrieved by the appointment, he may within thirty days after the service on him of the notice of appointment appeal under section 99 as if the notice of appointment served upon him were a notice of assessment and the provisions of this Act relating to appeals shall apply accordingly with any necessary modifications.
(4) Where any income on which tax is chargeable (or the source of any such income) is under the direction and control of a court in
69 PART IV PERSONS CHARGEABLE-69. Incapacitated persons.
(1) Where a person lawfully having the direction, control or management of any property or concern on behalf of an incapacitated person receives the gross income of that incapacitated person from all sources for the appropriate basis periods for a year of assessment, that first-mentioned person shall be assessable and chargeable to tax in respect of that income on behalf of that incapacitated person.
(2) Where there is no person assessable and chargeable to tax by virtue of subsection (1) in respect of the income of an incapacitated person, the Director General may appoint any person under subsection 68(1) to be the agent of that incapacitated person for all the purposes of this Act.
(3) Without prejudice to subsection (1) or (2), if an incapacitated person assessable and chargeable to tax is a minor, the minor's parent or guardian (or any person standing as regards the minor in a relationship corresponding to that of parent of guardian
70 PART IV PERSONS CHARGEABLE-70. Non-residents.
(1) A person who is not resident for the basis year for a year of assessment shall be assessable and chargeable to tax for that year of assessment either directly or in the name of any attorney, factor, agent, receiver or manager of his (whether or not the attorney, factor, agent, receiver or manager has the receipt of any income of that non-resident person):
Provided that nothing in this subsection shall render any person assessable or chargeable in the name of a broker, a general commission agent or any other agent where the broker or agent is not either:
(a) carrying on with the authority of that person the regular agency of that person; or
(b) a person assessable and chargeable as if he were an agent by virtue of section 141 on income in respect of gains or profits arising from sales or transactions carried out throught himself as broker or agent.
(2) Where a partner in a
71 PART IV PERSONS CHARGEABLE-71. Masters of ships and captains of aircraft.
The master of any ship and the captain of any aircraft owned or chartered by a person who is assessable and chargeable to tax in consequence of the application of section 54 shall (though not to the exclusion of any other agent) be deemed to be the agent of that person and shall be assessable and chargeable to tax on behalf of that person.
72 PART IV PERSONS CHARGEABLE-72. Hindu joint families.
The income of a Hindu joint family (and any income of the family's manager or karta in his capacity as such, being income by virtue of sections 55 to 59) shall be assessable and chargeable on the family's manager or karta , who shall accordingly be assessable and chargeable to tax on behalf of the family.
73 PART IV PERSONS CHARGEABLE-73. Trustees.
(1) The income of the trust body of a trust shall be assessable and chargeable to tax on the trust body (which may be given by the Director General a suitable designation for the purpose) and, so long as the trustees for the time being remain members of the trust body they shall (whether or not, in the case of each trustee, he was a member of the trust body when any particular responsibility or obligation under this Act first arose) jointly and severally be subject to all the liabilities to which they would be subject under section 67 if the trust body were the principal within the meaning of that section and each trustee were the representative within that meaning.
(2) A trustee who vacates his office shall cease to have responsibility under subsection (1):
Provided that nothing in this subsection shall relieve any person from responsibility for a criminal or negligent act, whenever committed.
74 PART IV PERSONS CHARGEABLE-74. Executors.
(1) Where an individual dies in the basis year for a year of assessment, his executors shall be assessable and chargeable to tax for that year of assessment, for the following year of assessment and, whenever necessary, for any previous year of assessment in respect of the chargeable income of that individual for any such year of assessment; and, where they are so assessable and chargeable, they shall be assessable and chargeable to tax in like manner and to the like amount as the individual would be assessed and charged to tax if he had not died.
(2) For the purposes of subsection (1):
(a) the reference therein to the chargeable income of any individual for any year of assessment shall be taken to be such chargeable income for that year as he would have had if he had not died in respect of any income of his arising before his death and in respect of any income received by his executors which if he had not died and
75 PART IV PERSONS CHARGEABLE-75. Companies and bodies of persons.
(1) The responsibility for doing all acts and things required to be done by or on behalf of a company or body of persons for the purposes of this Act shall lie jointly and severally:
(a) in the case of a company, with:
(i) the manager or other principal officer in Malaysia;
(ii) the directors;
(iii) the secretary; and
(iv) any person (however styled) exercising the functions of any of the persons mentioned in the foregoing subparagraphs; and
(b) in the case of a body of persons, with:
(i) the manager;
(ii) the treasurer;
(iii) the secretary; and
(iv) the members of its controlling authority.
(2) The liquidator of a company which is being wound up shall not distribute any of the assets of the company to its shareholders unless he has made provision (in so far as he is a
75A PART IV PERSONS CHARGEABLE-75A. Director's liability.
(1) Notwithstanding anything contrary to this Act or any other written law:
(a) where any tax is due and payable under this Act by a company, any person who is a director of that company during the period in which that tax is liable to be paid by that company; or
(b) where any debt is due and payable from an employer under any rules made pursuant to section 107 and the employer is a company, any person who is a director of that company during the period in which the debt is liable to be paid by that company, shall be jointly and severally liable for such tax or debt, as the case may be, that is due and payable and shall be recoverable under section 106 from that person.
(2) In this section, "director" means any person who:
(a) is occupying the position of director (by whatever name called), including any person who is concerned in the management of the co
75B PART IV PERSONS CHARGEABLE-75B. Limited liability partnership and business trust.
(1) The responsibility for doing all acts and things required to be done:
(a) by or on behalf of a limited liability partnership for the purposes of this Act shall lie jointly and severally:
(i) with the compliance officer who is appointed amongst the partners of the limited liability partnership; or
(ii) if no compliance officer is appointed as such, any one or all of the partners thereof; and
(b) by or on behalf of a business trust for the purposes of this Act shall lie jointly and severally with the trustee manager of such business trust.
(2) For the purpose of this section,
"compliance officer" has the meaning assigned to it in section 27 of the Limited Liability Partnerships Act 2012. [Ins. by Act 755 of the year 2013]
(3) Where in a year of assessment, a
76 PART IV PERSONS CHARGEABLE-76. Rulers and Ruling Chiefs.
(1) The income of a Ruler or Ruling Chief shall be assessable and chargeable to tax in the name of the person nominated by the Ruler or Ruling Chief for the purposes of this Act as the person executing the function of administrator of the private property of the Ruler or Ruling Chief:
Provided that where no such nomination has been made by a Ruler or Ruling Chief, section 66 shall apply to such Ruler or Ruling Chief.
(2) Where a person is responsible for the payment of tax on behalf of a Ruler or Ruling Chief:
(a) that person may pay the tax out of any private property in his hands or under his control belonging to the Ruler or Ruling Chief and may, to the extent that he pays any such tax out of his own property, indemnify himself out of any such private property;
(b) that person shall not be personally liable in respect of the tax except to the extent that he:
(i) has
77 PART V RETURNS-77. Return of income by a person other than a company, limited liability partnership, trust body or co-operative society.
(1) Every person, other than a company, limited liability partnership, trust body or cooperative society to which section 77A applies, shall for each year of assessment furnish to the Director General a return in the prescribed form:
[(1) Am. by Act 755 of the year 2013]
(a) in the case of that person who is carrying on a business, not later than 30 June in the year following that year of assessment; or
(b) in any other case than the case in paragraph (a) , not later than 30 April in the year following the year of assessment:
Provided that that person has:
(a) chargeable income for that year of assessment; or
(b) no chargeable income for that year of assessment, but has chargeable income or has furnished a return or has been required under this Act to furnish a return, for the year of assessment immediately preced
77A PART V RETURNS-77A. Return of income by every company, limited liability partnership, trust body or co-operative society.
(1) Every company, limited liability partnership, trust body or co-operative society shall for each year of assessment furnish to the Director General a return in the prescribed form within seven months from the date following the close of the accounting period which constitutes the basis period for the year of assessment.
(1A) For the purposes of this section, a company and a limited liability partnership shall furnish to the Director General a return in the prescribed form on an electronic medium or by way of electronic transmission in accordance with section 152A.
[(1A) Ins. Act 761:s.21; Am. Act 831:s.17]
(1B) Notwithstanding subsections (1), (3) and (4), every company, limited liability partnership, trust body or cooperative 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
77B PART V RETURNS-77B. Amendment of return.
(1) Where for a year of assessment a person has furnished a return in accordance with subsection 77(1) or subsection 77A(1) or (1B), 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 income or on the amount of tax which has been or would have been wrongly repaid to him.
[Am. by Act 851]
(2) An amended return under subsection (1) shall only be made after the due date for the furnishing of the return in accordance with subsection 77(1) or subsection 77A(1) or (1B), but not later than six months from that date.
[Am. by Act 851]
(3) For the purposes of this section, the amended return shall:
(a) specify the amount or additional amount of chargeable income and the amount of tax or additional tax payable on t
77C PART V RETURNS-77C. Deduction of tax as final tax.
(1) Notwithstanding section 77, where for a year of assessment an individual:
(a) has income only in respect of gains or profits from an employment.
[(1)(a) Am. by Act 764 of the year 2014]
(b) deductions have been made by his employer in accordance with subsection 107(2) in respect of such gains or profits;
(c) the individual is employed by the same employer in that year of assessment;
[(1)(c) Am. by Act 764 of the year 2014]
(d) such deductions are not borne by his employer for that year of assessment; and
(e) that individual whose husband or wife has not made an election pursuant to section 45,
the individual may elect not to furnish a return for a year of assessment to the Director General in accordance with section 77.
(2) Where subsection (1) applies and no re
78 PART V RETURNS-78. Power to call for specific returns and production of books.
For the purpose of obtaining full infomration 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 deems necessary; or
(c) to make a return in accordance with paragraph (a) and also to attend in accordance with paragraph (b) ;
(d) to provide in writing such information or particulars which the Director General deems necessary.
79 PART V RETURNS-79. Power to call for statement of bank accounts, etc.
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 solely or jointly during that period;
(c) all assets w
80 PART V RETURNS-80. Power of access to buildings and documents, etc.
(1) For the purposes of this Act the Director General shall at all times have full and free access to all lands, buildings and places and to all books, documents, objects, articles, materials and things and may search such lands, buildings and places and may inspect, copy or make extracts from any such books,documents, objects, articles, materials and things without making any payment by way of fee or reward.
[Am. by Act 683: s.18]
(1A) Where the Director General exercises his powers under subsection (1), the occupiers of such lands, buildings and places shall provide the Director General or an authorized officer with all reasonable facilities and assistance for the exercise of his powers under this section.
(2) The Director General may take possession of any books, documents, objects, articles, materials and things to which he has access under subsection (1) where in his opinion:
81 PART V RETURNS-81. Power to call for information.
The Director General may require any person to give orally or may by notice under his hand require any person to give in writing within a time specified in the notice all such information or particulars as may be demanded of him by the Director General for the purposes of this Act and which may be in the possession or control of that person:
[Am. by Act 742/ 2012]
Provided that, where that person is a public officer or an officer in the employment of a local authority or statutory authority, he shall not by virtue of this section be obliged to disclose any particulars as to which he is under a statutory obligation to observe secrecy.
82 PART V RETURNS-82. Duty to keep records and give receipts.
(1) Notwithstanding section 82A and subject to this section, every person carrying on a business:
(a) shall keep and retain in safe custody sufficient records for a period of seven years from the end of the year to which any income from that business relates to enable that income from that business for each year of assessment or the adjusted loss from that business for the basis period for any year of assessment to be readily ascertained by the Director General or an authorized officer; and
(b) if the gross takings from the business for the basis year for any year of assessment exceeded one hundred and fifty thousand ringgit from the sale of goods or one hundred thousand ringgit from the performance of services, shall issue a printed receipt serially numbered for every sum received in that year of assessment in respect of goods sold or services performed in the course of or in connection with the business
82A PART V RETURNS-82A. Duty to keep documents for ascertaining chargeable income and tax payable.
(1) Subject to this section, every person who is required to furnish a return of his income 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 purposes of ascertaining his chargeable income 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) that 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 of subsection (1) in respect of any income or deductions.
(4) Any person who is required by this section to keep documents and -;
(a) does so electronically shall retain them in an el
82B PART V RETURNS-82B. Duty to provide information and furnish documents for ascertaining chargeable income and tax payable.
(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.
[Ins. by Act 851]
82C PART V RETURNS-82C. Duty to issue electronic invoice.
(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 ot
83 PART V RETURNS-83. Return by employer.
(1) Every employer shall, for each year, furnish to the Director General a return in the prescribed form not later than 31 March in the year immediately following the first-mentioned year containing:
(a) the number of employees employed in the firstmentioned year;
(b) the number of employees subject to deductions under the Income Tax (Deduction From Remuneration) Rules 1994 [P.U.(A) 507/1994] for the first-mentioned year;
(c) the number of new employees employed in the first-mentioned year;
(d) the number of employees who have resigned in the first-mentioned year;
(e) the number of employees who have resigned and left Malaysia in the first-mentioned year; and
(f) such other particulars as may be required by the Director General.
(1A) For the purpose of subsection (1), every employer shall, for each year, prep
83A PART V RETURNS-83A. Duty to furnish particulars of payment made to an agent, etc.
(1) Every company shall for each year prepare and provide to each of its agent, dealer or distributor a copy of the form prescribed by the Director General containing:
(a) particulars of payment (whether in monetary form or otherwise) made during that year of assessment to that agent, dealer or distributor;
(b) name and address of that agent, dealer or distributor; and
(c) such other particulars as may be required by the Director General.
(2) For the purpose of subsection (1), the prescribed form shall be provided to the agent, dealer or distributor not later than 31 March in the year immediately following the year mentioned in that subsection.
(3) The company shall keep and retain the prescribed form in safe custody and shall make it readily accessible to the Director General.
(4) In this section, "agent", "dealer" or "distributor" means any person wh
84 PART V RETURNS-84. Return concerning persons other than the maker of the return.
(1) Every person who in whatever capacity is in receipt or has control of any money or property (being income of the kind mentioned in section 4) of or belonging to any other person who is chargeable to tax in respect thereof shall, if required to do so by a notice under the hand of the Director General, deliver to the Director General within a period to be specified in the notice (not being less than thirty days from the date of service of the notice) a return in the prescribed form containing particulars of the income and a statement of the name and address of the person to whom it belongs.
(2) Every person who sells any goods in Malaysia on behalf of a person who is not resident for the basis year for a year of assessment shall, if those goods are sold in the course of carrying on a business of that second-mentioned person, deliver to the Director General within thirty days after the end of each quarter of that year of assessment a return sh
85 PART V RETURNS-85. Return by occupiers.
The Director General may by notice under his hand require the occupier of any land or premises situated in Malaysia to furnish within a time to be specified in the notice (not being less than thirty days from the date of service of the notice) a return containing:
(a) the name and address of the person registered (under any law relating to the registration of title to land) as the proprietor of the land or premises, or the name and address of the person to whom he pays rent therefor; and
(b) a statement of any rent or other consideration payable in respect of the occupation or in respect of furniture enjoyed in connection with the occupation.
86 PART V RETURNS-86. Return by partnership.
(1) Where a business is carried on by a partnership:
(a) the precedent partner, that is to say, the partner who, being an acting partner present in Malaysia:
(i) is first named in the partnership agreement; or
(ii) if there is no partnership agreement, is specified by name or initial singly or with precedence to the other partners in the usual name of the firm; or
(b) if no acting partner is present in Malaysia, any attorney, agent, manager or factor of the partnership in Malaysia,
shall for each year of assessment furnish to the Director General a return in the prescribed form not later than 30 June in the year following that year of assessment.
(2) For the purposes of subsection (1), a return for a year of assessment shall:
(a) specify the divisible income or the divisible loss as ascertained under the appropriate provisions of s
87 PART V RETURNS-87. Power to call for further return.
The Director General may give notice in writing to any person whenever he thinks fit requiring that person to furnish within a reasonable time (to be specified in the notice) fuller or further returns respecting any matter as to which a return is required by or under this Act.
88 PART V RETURNS-88. Returns deemed to be made with due authority.
A return purporting to be made pursuant to this Act by or on behalf of any person shall be presumed to have been made by that person or on his authority, as the case may be, until contrary is proved; and any person signing such a return shall be deemed to be cognisant of its contents.
89 PART V RETURNS-89. Change of address.
Every person chargeable to tax who changes his address in Malaysia (being an address furnished by him to the Director General) for another address in Malaysia shall within three months inform the Director General of the change by notice in writing.
90 PART VI ASSESSMENTS AND APPEALS Chapter 1 - Assessments-90. Assessments generally.
(1) Where a person has furnished a return in accordance with section 77 or 77A to the Director General for a year of assessment, 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 income, the tax and the chargeable income being the respective amounts as specified in the return.
(2) 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.
(3) Where a person for a year of assessment has not furnished a return in accordance with section 77 or
91 PART VI ASSESSMENTS AND APPEALS Chapter 1 - Assessments-91. Assessments and additional assessments in certain cases.
(1) The Director General, where for any year of assessment it appears to him that no or no sufficient assessment has been made on a person chargeable to tax, may in that year or within five years after its expiration make an assessment or additional assessment, as the case may be, in respect of that person in the amount or additional amount of chargeable income and tax or in the additional amount of tax in which, according to the best of the Director General's judgment, the assessment with respect to that person ought to have been made for that year.
(2) Where the Director General discovers that the whole or part of any tax repaid to a person (otherwise than in consequence of an agreement come to with respect to an assessment pursuant to subsection 101(2) 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
91A PART VI ASSESSMENTS AND APPEALS Chapter 1 - Assessments-91A. Deemed assessment on the amended return.
(1) Where a person has furnished an amended return in accordance with section 77B 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 income; or
(b) in the amount of tax which has been or would have been wrongly repaid,
the tax or additional tax and the chargeable income being the respective amounts as specified in the amended return.
(2) For the purpose 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 noti
92 PART VI ASSESSMENTS AND APPEALS Chapter 1 - Assessments-92. Advance assessments.
(1) Subject to this section:
(a) where in a year of assessment a person ceases to possess a source consisting of a business the Director General may in that year make an assessment in respect of that person and income from that source for that year of assessment and the following year of assessment;
(b) where in a year of assessment a person commences to receive income in respect of income from an employment or in respect of any pension, annuity, or other periodical payments falling under paragraph 4(e), the Director General may in that year make an assessment in respect of that person and income from that source for that year of assessment and each of the subsequent years of assessment;
(c) where in a year of assessment the Director General is satisfied that a person who possesses a source is about to leave Malaysia and:
(i) that person is likely to cease to possess t
93 PART VI ASSESSMENTS AND APPEALS Chapter 1 - Assessments-93. Form and making of assessment.
An assessment, other than an assessment under subsections 90(1) and 91A(1), in respect of a person shall:
[Am. by Act 693/2009: s.23]
(a) be made in the appropriate prescribed form;
(b) indicate, in addition to any other material included therein, the appropriate year of assessment and the amount or additional amount of chargeable income and the tax charged thereon or the amount of tax or additional tax, as the case may be; and
(c) specify in the appropriate space in that form the date on which that form was duly completed,
and, where that form appears to have been duly completed the assessment shall, until the contrary is proved, be presumed to have been made on the date so specified.
94 PART VI ASSESSMENTS AND APPEALS Chapter 1 - Assessments-94. Record of assessments.
The Director General shall cause to be maintained in such manner as he thinks fit a record of all assessments made for each year of assessment.
95 PART VI ASSESSMENTS AND APPEALS Chapter 1 - Assessments-95. Discharge of double assessments.
Where two or more assessments have been made with respect to a person on the same income for the same year of assessment, the Director General may discharge such of those assessments as need to be discharged in order to ensure that the income is charged to tax only once for that year.
96 PART VI ASSESSMENTS AND APPEALS Chapter 1 - Assessments-96. Notice of assessment.
(1) As soon as may be after an assessment, other than an assessment under subsections 90(1) and 91A(1), has been made, the Director General shall cause a notice of assessment to be served on the person in respect of whom the assessment was made.
[Am. by Act 693/2009: s.24]
(2) Where the tax charged under an assessment is increased on appeal to the Special Commissioners or a court, then, so soon as may be after the appeal has been decided there shall be served on the person in respect of whom the assessment was made a notice of increased assessment.
(3) Where subsection 99(2) applies as regards an agent and another person, any notice to be served under subsection (1) or (2) shall be served both on the agent and on the other person.
(4) A notice served under subsection (1) or (2) shall be in the prescribed form and shall indicate, in addition to any other material included therein:
96A PART VI ASSESSMENTS AND APPEALS Chapter 1 - Assessments-96A. Composite Assessment.
(1) Without prejudice to section 91, where a person:
(a) makes default in furnishing a return in accordance with subsection 77(1) or subsection 77A(1) or (1B);
[Am. by Act 851]
(b) fails to give notice of chargeability in accordance with subsection 77(3);
(c) makes an incorrect return by omitting or understating any income of which he is required by this Act to make a return on behalf of himself or another person; or
(d) gives any incorrect information in relation to any matter affecting his own chargeability to tax or the chargeability to tax of any other person,
for any year or years of assessment (that year or those years being referred to in this section as the relevant year or relevant years), the Director General and that person may come to an agreement in writing as to the payment by that person of a sum of money (in this secti
97 PART VI ASSESSMENTS AND APPEALS Chapter 1 - Assessments-97. Finality of assessment.
(1) Where:
(a) no valid notice of appeal against an assessment has been given under section 99 within the time specified by that section (or any extension thereof);
(b) an agreement has been come to with respect to an assessment pursuant to subsection 101(2); or
(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) sh
97A PART VI ASSESSMENTS AND APPEALS Chapter 1 - Assessments-97A. Notification of non-chargeability.
(1) Where in ascertaining the chargeable income of a person, it appears to the Director General that:
(a) no assessment shall be made in respect of that person for any year of assessment by reason of:
(i) absence of adjusted income, statutory income, aggregate income or total income of a person from any of his sources of income; or
(ii) exemption granted to that person under this Act or the Promotion of Investments Act 1986; or
(b) assessment has been made in respect of that person, but that person has no statutory income from a source consisting of a business,
the Director General may notify that person in writing:
(i) in respect of paragraph (a) , that no assessment shall be made for that year of assessment and provide a computation with regard to it; or
(ii) in respect of paragraph (b) , the adj
98 Chapter 2 - Appeals-98. The Special Commissioners and the Secretary .
(1) For the purposes of this Act there shall be three or more Special Commissioners of Income Tax and a Secretary to the Special Commissioners.
[(1) Gen. Am. Act A1609:s.2]
(2) The Special Commissioners shall be appointed by the Yang di-Pertuan Agong.
(3) The Special Commissioners shall include such number of persons with judicial or other legal experience (that is to say, experience as an advocate, as a member of the judicial and legal service or as the holder of an office to which the Judges Remuneration Act 1971 [Act 45] , applies) as may be necessary for the purposes of paragraph 1 of Schedule 5; and, if the Yang di-Pertuan Agong considers it expedient to do so, he may appoint from amongst those persons a Chairman and such number of Deputy Chairman of the Special Commissioners.
[(3) Am. by Act 693/2009: s.26]
(4) Each Special Commissioner:
99 Chapter 2 - Appeals-99. Right of appeal.
(1) Subject to subsection (1A), a person aggrieved by an assessment made in respect of him may appeal to the Special Commissioners against the assessment by giving to the Director General within thirty days after the service of the notice of assessment or, in the case of an appeal against an assessment made under section 92, within the first three months of the year of assessment following the year of assessment for which the assessment was made (or within such extended period as regards those days or months as may be allowed under section 100) a written notice of appeal in the prescribed form stating the grounds of appeal and containing such other particulars as may be required by that form.
[(1) Am. Act A1576:s.5]
(1A) A person who has failed to furnish a return for a basis period for a year of assessment in accordance with subsection 77A(1) or (1B) may appeal against the assessment made by the Director General
100 Chapter 2 - Appeals-100. Extension of time for appeal.
(1) A person seeking to appeal against an assessment after the expiration of the period to make an appeal under subsection 99(1), may within seven years after the end of that period, make to the Director General a written application in the prescribed form for an extension of that period within which a notice of appeal against that assessment may be given under that subsection.
[(1) Subs. Act 823:s.14]
(2) On receipt of an application under subsection (1), the Director General:
(a) if he is satisfied that for any reasonable cause the applicant was prevented from giving notice of appeal within the appropriate period provided by subsection 99(1), shall extend that period as he thinks proper in the circumstances and give written notice of the extension to the applicant; and
(b) if he is not so satisfied, shall forward the application to the Secretary, together with a sta
101 Chapter 2 - Appeals-101. Review by Director General.
(1) On receipt of a notice of appeal under subsection 99(1), the Director General , within twelve months from the date of receipt of the notice of appeal, review the assessment against which the appeal is made and for that purpose may:
(a) require the appellant to furnish such particulars as the Director General may think necessary with respect to the income to which the assessment relate and any other matter relevant to the assessment in the Director General's opinion;
(b) require the appellant to produce all books or other documents in the appellant's custody or under the appellant's control relating to any source to which the assessment relates or any other matter relevant to the assessment in the Director General's opinion;
(c) summon any person who in the Director General's opinion is able to give evidence respecting the assessment to attend before the Director General; and
102 Chapter 2 - Appeals-102. Disposal of appeals.
(1) Subject to subsection (1A) or (3), the Director General may send an appeal forward to the Special Commissioners at any time within the twelve-month period from the date of receipt of the notice of appeal or, if an extension under subsection 101(1B) has been granted, within the extended period if he is of the opinion that there is no reasonable prospect of coming to an agreement with the appellant in accordance with subsection 101(2) in respect of the appeal and if subsections 101(3) and (4) are not applicable; and, where he sends an appeal forward under this subsection, he shall give the appellant written notice that he has done so.
[(1) Am. by Act 761 of the year 2014]
(1A) Where a person has made an application to invoke a mutual agreement procedure pursuant to an arrangement made under section 132 and the ground in which the application is made is similar with the appeal filed under this Act:
103 PART VII COLLECTION AND RECOVERY OF TAX-103. Payment of tax.
(1) Except as provided in subsection (2), tax payable under an assessment for a year of assessment shall be due and payable on the due date whether or not that person appeals against the assessment.
(1A) Where an assessment or additional assessment has been made under section 91A, 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.
[(1A) Am. Act 823:s.15; Proviso Del. Act 823:s.15]
Provided that where the amended return is furnished within a period of sixty days after the due date and the amount of tax due and payable has not been paid within the period of sixty days from the due date, so much of the tax as is unpaid upon the expiration of that period shall without any further notice being served be further increased by a sum equal to five per cent of th
103A PART VII COLLECTION AND RECOVERY OF TAX-103A. [Deleted by Act A1151].
[Deleted by Act A1151] .
103B PART VII COLLECTION AND RECOVERY OF TAX-103B. Tax payable notwithstanding institution of proceedings under any other written law.
The institution of any proceedings under any other written law against the Government or the Director General shall not relieve any person from liability for the payment of any tax, debt or other sum for which he is or may be liable to pay under this Part.
[103B. Ins. Act 831:s.20]
104 PART VII COLLECTION AND RECOVERY OF TAX-104. Recovery from persons leaving Malaysia.
(1) The Director General, where he is of the opinion that any person is about or likely to leave Malaysia without paying:
(a) all tax payable by him (whether or not due or due and payable);
(b) all sums payable by him under subsection 103(3), (5) or (7) or subsection 107B(3) or (4) subsection 107C(9), (10) or (10A);
[(b) Subs. Act 719:s.18; Am. Act 823:s.16; Am. Act 831:s.21]
(c) all debts payable by him under subsection 107A(2) or 109(2), 109B(2) or 109F(2);
[(1)(c) Am. by Act 693/2009: s.28]
may issue to any Commissioner of Police or Director of Immigration a certificate containing praticulars of the tax, sums and debts so payable witha request for that person to be prevented from leaving Malaysia unless and until he pays all the tax, sums and debts so payable or furnishes security to the satisfaction of
105 PART VII COLLECTION AND RECOVERY OF TAX-105. Refusal of customs clearance in certain cases.
(1) Where tax payable by a person who carries on the business of transporting passengers or cargo by air or sea (or tax payable by an agent of that person) has remained unpaid for more than three months (whether that person has been assessed directly or the agent has been assessed on his behalf) the Director General may with the approval of the Minister issue to the customs authority a certificate containing the name of that person or the agent, as the case may be, and particulars of the tax in default; and the customs authority shall thereupon refuse clearance from any port, aerodrome or airport in Malaysia to any ship or aircraft wholly or partly owned or chartered by that person until the tax is paid.
(2) No legal proceedings shall be instituted or maintained against the Government, the customs authority or any public officer in respect of a refusal of clearance under this section, nor shall the fact that a ship or aircraft is detained under
106 PART VII COLLECTION AND RECOVERY OF TAX-106. Recovery by suit.
(1) ax due and payable may be recovered by the Government by civil proceedings as a debt due to the Government.
(2) The Director General and all authorized officers shall be deemed to be public officers authorized by the Minister under subsection 25(1) of the Government Proceedings Ordinance 1956*, in respect of all proceedings under this section.
(3) In any proceedings under this section the court shall not entertain any plea that the amount of tax sought to be recovered is excessive, incorrectly assessed, under appeal or incorrectly increased under subsection subsection 103(3), (5) or (7).
[(3) Am. Act A1151:s.18; Am. Act 693:s.29; Am. Act 823:s.17; Am. Act 831:s.22]
106A PART VII COLLECTION AND RECOVERY OF TAX-106A. Power to call for bank account information for purpose of making garnishee order application.
(1) Where civil proceedings have been instituted against a person under section 106 and a judgement has been obtained against the person, the Director General may by notice under his hand require any financial institution to furnish within a time specified in the notice, the bank account information of that person, if any, for the purpose of making an application to court for a garnishee order.
(2) Where a financial institution is required to furnish bank account information in accordance with subsection (1), that financial institution shall not disclose to any person that such request was made to the financial institution.
(3) In this section, "financial institution" means:
(a) any person licensed under the Financial Services Act 2013 to carry on a banking business in Malaysia;
(b) any person licensed under the Islamic Financial Services Act 2013 to carry on an Islamic banking business in
107 PART VII COLLECTION AND RECOVERY OF TAX-107. Deduction of tax from emoluments and pensions.
(1) Where any income in respect of gains or profits from an employment or in respect of any pension, annuity or periodical payment falling under paragraph 4 (e) is payable to an individual, then, if the Director General so directs, the person by whom the income is payable shall make deductions out of the income on account of tax which is or may be payable by that individual for any year of assessment.
(2) Subject to any rules made under section 154, deductions under this section on account of tax shall be made at such times and in such amounts as the Director General may direct, whether or not the tax has been assessed.
(3) In relation to any case, nothing in this section shall prevent the collection of any tax (not being tax deducted in accordance with this section) in accordance with section 103 or the payment of that tax being enforced in accordance with section 106:
Provided that in any such case for the purposes of
107A PART VII COLLECTION AND RECOVERY OF TAX-107A. Deduction of tax from contract of payment.
(1) Where any person (in this section referred to as "the payer") is liable to make contract payment to a non-resident contractor in respect of services under a contract, he shall upon paying or crediting such contract payment deduct therefrom tax at the rate of:
(a) ten per cent of the contract payment on account of tax which is or may be payable by that non-resident contractor for any year of assessment; and
(b) three per cent of the contract payment on account of tax which is or may be payable by employees of that non-resident contractor for any year of assessment,
and (whether or not that tax is so deducted) shall within one month after paying or crediting such contract payment render an account and pay the amount of that tax to the Director General:
Provided that the Director General may:
(i) give notice in writing to the payer requiring him to deduct and pay tax a
107B PART VII COLLECTION AND RECOVERY OF TAX-107B. Payment by instalments.
(1) Subject to this section, every person chargeable to tax for a year of assessment, other than a company, trust body, cooperative society or limited liability partnership to which section 107C applies shall make payment by instalments on account of tax, excluding tax in respect of gains or profits from an employment, which is or may be payable by that person for that year of assessment, at such times and in such amounts as the Director General may direct, whether or not the tax has been assessed.
[(1) Am. by Act 755 of the year 2013]
(2) In determining the amount to be paid under subsection (1), the Director General may take into consideration the tax assessed, if any, in respect of the person for the year of assessment preceding that year of assessment:
Provided that the Director General may, upon an application made by the person not later than the thirtieth day of June in that year of assessment, vary
107C PART VII COLLECTION AND RECOVERY OF TAX-107C. Estimate of tax payable and payment by instalments for companies.
(1) Every company, limited liability partnership, trust body or co-operative society shall for each year of assessment furnish to the Director General an estimate of its tax payable.
[(1) Am. by Act 755 of the year 2013]
(2) Except as provided in paragraph (4)(a) and subsection (4A), the estimate of tax payable for a year of assessment shall be made in the prescribed form and furnished to the Director General not later than thirty days before the beginning of the basis period for that year of assessment.
[Am. by Act 683: s.19]
(3) The estimate of tax payable for a year of assessment shall not be less than eighty-five per cent of the revised estimate of tax payable for the immediately preceding year of assessment or if no revised estimate is furnished, shall not be less than eighty-five per cent of the estimate of tax payable for the immediately preceding year of assessment.
107D PART VII COLLECTION AND RECOVERY OF TAX-107D. Deduction of tax from payment made to agent, etc.
(1) Where a company, in this section referred to as the payer, is liable to make payments in monetary form to an agent, a dealer or a distributor at any time in a basis year for a year of assessment arising from sales, transactions or schemes carried out by that agent, dealer or distributor, the payer shall upon paying or crediting such payments deduct therefrom tax at the rate of two per cent of the payments on account of tax which is or may be payable by that agent, dealer or distributor for any year of assessment and, whether or not that tax is so deducted, shall within thirty days after paying or crediting such payments render an account and pay the amount of that tax to the Director General:
Provided that the Director General may:
(a) give notice in writing to the payer requiring the payer to deduct and pay tax at some other rates or to pay or credit the payments without deduction of tax; or
(b)
108 PART VII COLLECTION AND RECOVERY OF TAX-108. Non-deduction of tax from dividend.
Where a dividend is paid or credited by a company to any of its shareholders in the basis period for a year of assessment, then, if the dividend is deemed by virtue of section 14 to be derived from Malaysia, the company shall not be entitled to deduct tax from such divident paid or credited.
[Subs. by Act 683: s.20]
109 PART VII COLLECTION AND RECOVERY OF TAX-109. Deduction of tax from interest or royalty in certain cases.
(1) Where any person (in this section referred to as the payer) is liable to pay interest or royalty derived from Malaysia to any other person not known to him to be resident in Malaysia, other than interest or royalty attributable to a business carried on by such other person in Malaysia, he shall upon paying or crediting the interest (other than interest on an approved loan or interest of the kind referred to in paragraph 33, 33A, 33B, 35 or 35A of Part I, Schedule 6) or royalty deduct therefrom tax at the rate applicable to such interest or royalty, and (whether or not that tax is so deducted) shall within one month after paying or crediting the interest or royalty render an account and pay the amount of that tax to the Director General:
[Subs. by Act 683: s.21]
Provided that the Director General may under special circumstances allow extension of time for tax deducted to be paid over.
109A PART VII COLLECTION AND RECOVERY OF TAX-109A. Application of sections 109 and 110 to income derived by a public entertainer.
The provisions of sections 109 and 110 shall apply mutatis mutandis to remuneration or other income in respect of services performed or rendered in Malaysia by a public entertainer.
109B PART VII COLLECTION AND RECOVERY OF TAX-109B. Deduction of tax from special classes of income in certain cases derived from Malaysia.
(1) Where any person (in this section referred to as "the payer") is liable to make payments to a non-resident:
(a) for services rendered by the non-resident person or his employee in connection with the use of property or rights belonging to, or the installation or operation of any plant, machinery or other apparatus purchased from, such non-resident;
(b) for any advice given, or assistance or services rendered in connection with the management or administration of any scientific, industrial or commercial undertaking, venture, project or scheme;
[(b) Am. Act 812:s.19A]
(c) for rent or other payments made under any agreement or arrangement for the use of any moveable property,
which is deemed to be derived from Malaysia, he shall, upon paying or crediting the payments, deduct therefrom tax at the rate applicable to such payments, and (wh
109C PART VII COLLECTION AND RECOVERY OF TAX-109C. Deduction of tax from interest paid to a resident.
(1) Where any person (in this section referred to as "the payer") is liable to pay interest (other than interest exempt from tax under this Act or any order made thereto) accruing in or derived from Malaysia to an individual resident in Malaysia, he shall upon paying or crediting such interest deduct therefrom tax at the rate applicable to such interest, and (whether or not that tax is so deducted) shall within one month after paying or crediting the interest render an account and pay the amount of that tax to the Director General:
Provided that the Director General may under special circumstances, allow extension of time for tax deducted to be paid over.
(2) Where the payer fails to pay any amount due from him under sub-section (1), the amount which he fails to pay shall be a debt due from him to the Government and shall be payable forthwith to the Director General.
(3) Where in pursuance of this section any amount is paid to t
109D PART VII COLLECTION AND RECOVERY OF TAX-109D. Deduction of tax on the distribution of income of a unit trust.
(1) This section shall only apply to income of a unit trust which is exempt under section 61A.
(2) Where a unit trust (in this section referred to as the payer) distributes income to a unit holder other than a unit holder which is a resident company which is deemed to be derived from Malaysia, the payer shall upon distributing the income, deduct therefrom tax at the rate applicable to such income and shall within one month after distributing such income, render an account and pay the amount of that tax to the Director General:
[Am. by Act 661: s.24]
Provided that the Director General may under special circumstances allow extension of time for tax deducted to be paid over.
[Proviso Subs. by Act 693/2009: s.35]
(3) Where the payer fails to pay any amount due from him under subsection (2), that amount which he fails to pay shall be increased by a sum equal to ten per cen
109DA PART VII COLLECTION AND RECOVERY OF TAX-109DA. Deduction of tax on distribution of income of unit trust to unit holder other than individual.
(1) This section shall only apply to income of a unit trust that is a retail money market fund exempt under paragraph 35A of Schedule 6 in respect of income distributed to a unit holder other than an individual.
(2) Where a unit trust, in this section referred to as the payer, distributes income which is derived from Malaysia to a unit holder, the payer shall upon distributing the income, deduct therefrom tax at the rate applicable to such income and shall within one month after distributing such income, render an account and pay the amount of that tax to the Director General:
Provided that the Director General may under special circumstances allow extension of time for tax deducted to be paid over.
(3) Where the payer fails to pay any amount due from him under subsection (2), that amount which the payer fails to pay shall be increased by a sum equal to ten per cent of that amount, and the amount which the payer fails to pay and
109E PART VII COLLECTION AND RECOVERY OF TAX-109E. Deduction of tax on the distribution of income of a family fund, etc.
(1) This section shall only apply to profits distributed or credited out of family fund, family re-takaful fund or general fund under section 60AA where such profits have been claimed as a deduction under subparagraph (3) (b) (ii), (4) (b) (ii), (5) (b) (vii) or (7) (b) (vii) of that section.
[(1) Am. by Act 761 of the year 2014]
(2) Where a takaful operator (in this section referred to as "the payer") distributes or credits any amount of income to a participant other than participant which is a resident company which is deemed to be derived from Malaysia, the payer shall upon distributing or crediting the amount:
(a) deduct from the proportion of that amount, tax at the rate applicable to that proportion; and
(b) whether or not that tax is so deducted, within one month after distributing or crediting such amount, render an account and pay
109F PART VII COLLECTION AND RECOVERY OF TAX-109F. Deduction of tax from gains or profits in certain cases derived from Malaysia.
(1) Where any person (in this section referred to as "the payer") is liable to make payments to a non-resident in relation to any gains or profits falling under paragraph 4(f) which is derived from Malaysia, he shall upon paying or crediting such payments deduct therefrom tax at the rate applicable to such payments, and (whether or not that tax is so deducted) shall within one month after paying or crediting such payments render an account and pay the amount of that tax to the Director General:
Provided that the Director General may under special circumstances allow extension of time for the amount of tax deducted to be paid over.
(2) Where the payer fails to pay any amount due from him under subsection (1), the amount which he fails to pay shall be increased by a sum equal to ten per cent of the amount which he fails to pay, and that amount and the increased sum shall be a debt due from him to the Government and shall be payable forthw
109G PART VII COLLECTION AND RECOVERY OF TAX-109G. Deduction of tax from income derived from withdrawal of a deferred annuity or a private retirement scheme.
(1) Where a person (in this section referred to as "the payer") makes payment to an individual (in this section referred to as "the recipient") in relation to a withdrawal from a deferred annuity or a private retirement scheme before reaching the age of fifty-five (other than by reason of permanent total disablement, serious disease, mental disability, death, permanently leaving Malaysia, healthcare or housing, for which such withdrawal shall be in compliance with the criteria as set out in the relevant guidelines of the Securities Commission) from a fund administered by that payer under a deferred annuity scheme or a private retirement scheme, the payer shall upon paying the amount, deduct from that amount, tax at a rate applicable to such payment, and (whether or not tax is so deducted) shall within one month after paying the amount render an account and pay the amount of that tax to the Director General: Provided that the Director General may under
109H PART VII COLLECTION AND RECOVERY OF TAX-109H. Appeal by the payer.
(1) A payer referred to in sections 109, 109B or 109F may, within thirty days (or any period extended by the Director General) from the date an amount is due to be made to the Director General under that section, appeal to the Special Commissioners by reason that such amount is not liable to be paid under this Act and the provision of this Act relating to appeals shall apply accordingly with any necessary modification.
(2) Where an amount is due from the payer to a non-resident person, this section shall not apply or cease to apply if:
(a) an appeal has been fi led to the Special Commissioners by the non-resident person to whom the payer was liable to pay the amount of interest or royalty, or payment under section 4A or paragraph 4 (f) , of which the amount due under subsection (1) relates;
(b) such payment to the non-resident made by the payer is disallowed as deduction under section 39 in
110 PART VII COLLECTION AND RECOVERY OF TAX-110. Set off for tax deducted.
(1) Any tax which is deducted from any interest or royalty under section 109 or from any payment for services, technical advice, assistance, or rental or other income under section 109B (including any amount recovered by the Director General pursuant to subsection 109(2) or 109B(2) but excluding any increase thereof) shall, when the interest, royalty, or payment for services, technical advice, assistance, or rental or other income is gross income of a person from a source of his for the basis period for a year of assessment, be set off against the tax charged on his chargeable income, if any, for that year.
[Subs. by Act 683: s.23]
(1A) [Deleted by Act 683: s.23] .
(1B), (1C), (1D) & (1E) [Deleted by Act A1093: s.17] .
(2) Subject to this section, where in relation to a year of assessment Chapter 3 of Part III has by virtue of section 41 applied to an accounting period as if it were
110A PART VII COLLECTION AND RECOVERY OF TAX-110A. [Deleted by Act 683: s.24].
[Deleted by Act 683: s.24] .
110B PART VII COLLECTION AND RECOVERY OF TAX-110B. Set-off for tax charged on actuarial surplus.
(1) Notwithstanding section 110, where for a basis period for a year of assessment an amount of actuarial surplus from the life fund of an insurer is transferred to the shareholders' fund pursuant to subsection 60(3A) or (4A), any amount of tax charged on the portion of that surplus shall be set off against the tax charged on the chargeable income from the shareholders' fund of that insurer in respect of the life business.
(2) Where:
(a) tax is set off under this section against the tax charged on the chargeable income of an insurer from its shareholders' fund in respect of life business for a year of assessment and the amount of the tax set-off exceeds the tax charged for that year, the excess shall be disregarded; or
(b) there is no tax charged for that year, so much of the amount of tax that would otherwise be set off but for the absence of such tax charged shall be disregarded.
110C PART VII COLLECTION AND RECOVERY OF TAX-110C. Set-off for tax charged on actuarial surplus under takaful business.
(1) Notwithstanding section 110, where for a basis period for a year of assessment an amount of actuarial surplus from the family fund of a takaful operator is transferred to the shareholders' fund pursuant to subparagraph 60AA(9)(a)(vi) or 60AA(10)(a)(vi), any amount of tax charged on the portion of that surplus shall be set off against the tax charged on the chargeable income from the shareholders' fund of that operator in respect of the family business.
[(1) Am. Act 785:s.21]
(2) Where:
(a) tax is set off under this section against the tax charged on the chargeable income of an operator from its shareholders' fund in respect of family business for a year of assessment and the amount of the tax set-off exceeds the tax charged for that year, the excess shall be disregarded; or
(b) there is no tax charged for that year, so much of the amount of tax that would otherwis
111 PART VII COLLECTION AND RECOVERY OF TAX-111. Refund of over-payment.
(1) Subject to this section, where it is proved to the satisfaction of the Director General that any person has paid tax for any year of assessment (by deduction or otherwise) in excess of the amount payable under this Act, that person shall be entitled to have the excess refunded by the Government and, where that person is dissatisfied with the amount to be refunded to him, he may within thirty days of being notified of that amount appeal to the Special Commissioners as if the notification were a notice of assessment, the provisions of this Act relating to appeals applying accordingly within any necessary modifications.
(1A) Where a person has furnished a return in accordance with subsection 77(1) or section 77A to the Director General for a year of assessment and that person has paid tax in excess of the amount payable:
[Am. by Act 661: s.25, Act 683: s.26; Act 719/2011]
(a) that re
111A PART VII COLLECTION AND RECOVERY OF TAX-111A. [Deleted Act 683: s.27].
[Deleted Act 683: s.27] .
111B PART VIIA FUND FOR TAX REFUND-111B. Establishment of Fund for Tax Refund.
(1) There is hereby established a fund, to be known as the Fund for Tax Refund (in this section referred to as "the Fund") which shall be specified in and incorporated into the Second Schedule to the Financial Procedure Act 1957 [Act 61] .
(2) There shall be paid from time to time into the Fund such amount of tax collected under this Act as may be authorized by the Minister.
(3) The moneys of the Fund shall be applied for the making of a refund of an amount of tax paid in excess of the amount payable as ascertained in section 111 of this Act or any other refund or payment required to be paid out of the Fund as provided by any other written law.
(4) The Fund shall be administered by the Accountant General of Malaysia.
(5) Notwithstanding subsection (2) and the Financial Procedure Act 1957, the Minister may from time to time authorize the payment into the Consolidated Revenue Account in the Federal Consolidated Fun
111C PART VIIA FUND FOR TAX REFUND-111C. Non applicability of section 14A of the Financial Procedure Act 1957.
Section 14A of the Financial Procedure Act 1957 shall not apply to any refund in excess of the amount payable as ascertained in section 111.
111D PART VIIA FUND FOR TAX REFUND-111D. Compensation for over-payment of tax.
(1) Subject to this section and subsection 111(4A), an amount of compensation may be payable to a person if the amount refunded to that person for a year of assessment under section 111 is made after:
(a) ninety days from the date a return for that year of assessment is required to be furnished under this Act, in the case of return furnished by way of electronic transmission; or
(b) one hundred and twenty days from the date a return for that year of assessment is required to be furnished under this Act, in any other case.
(2) For the purposes of this section:
(a) the "amount refunded" refers to tax paid in accordance with section 107, 107B or 107C for a year of assessment in excess of tax payable, if any, for that year of assessment as specified in a return furnished under section 77 or 77A; and
(b) the amount of compensation shall be det
112 PART VIII OFFENCES AND PENALTIES-112. Failure to furnish return or give notice of chargeability.
(1) Any person who makes default in furnishing a return in accordance with subsection 77(1) or subsection 77A(1) or (1B) or in giving a notice in accordance with subsection 77(3) shall, if he does so without reasonable excuse, 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.
[Am. by Act 851]
[(1) Am. by Act 764 of the year 2014]
(2) In any prosecution under subsection (1) the burden of proving that a return has been made or a notice given shall be upon the accused person.
(2A) Where a person has been convicted of an offence under subsection (1), the court may make a further order that the person shall comply with the relevant provision of this Act under which the offence has been committed within thirty days, or
112A PART VIII OFFENCES AND PENALTIES-112A. Failure to furnish country-by-country report.
(1) Any person who makes default in furnishing a country-by-country report in accordance with the relevant rules made under paragraph 154(1)(c) to implement or facilitate the operation of an arrangement having effect under section 132, 132A and 132B, where such arrangement relates to the furnishing of a country-by-country report, shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than twenty thousand ringgit and not more than one hundred thousand ringgit or to imprisonment for a term not exceeding six months or to both.
[(1) Am. Act A1556:s.2]
(2) In any prosecution under subsection (1) the burden of proving that a country-by-country report has been furnished shall be upon the accused person.
(3) Where a person has been convicted of an offence under subsection (1), the court may make a further order that the person shall comply with the relevant provision of the rules u
113 PART VIII OFFENCES AND PENALTIES-113. Incorrect returns.
(1) Any person who:
(a) makes an incorrect return by omitting or understating any income of which he is required by this Act to make a return on behalf of himself or another person; or
(b) gives any incorrect information in relation to any matter affecting his own chargeability to tax or the chargeability to tax of any other person,
shall, unless he satisfies the court that the incorrect return or incorrect information was made or given in good faith, be guilty of an offence and shall, on conviction, be liable to a fine of not less than one thousand ringgit and not more than ten thousand ringgit and shall pay a special penalty of double the amount of tax which has been undercharged in consequence of the incorrect return or incorrect information or which would have been undercharged if the return or information had been accepted as correct.
(2) Where a person:
113A PART VIII OFFENCES AND PENALTIES-113A. Incorrect returns, information returns or reports.
Any person who:
[Renumbering by Act A1556:s.3]
(a) makes an incorrect return, information return or report by omitting the information required to be provided in accordance with any rules made under paragraph 154(1)(c) to implement or facilitate the operation of an arrangement having effect under section 132, 132A and 132B, where such arrangement relates to the automatic exchange of information or the furnishing of a country-by-country report, on behalf of himself or another person; or
[(a) Am. Act A1556:s.3]
(b) gives any incorrect information in relation to any information required to be provided in accordance with any rules made under paragraph 154(1)(c) to implement or facilitate the operation of an arrangement having effect under section 132, 132A and 132B, where such arrangement relates to the automatic exchange of information or the furnishing of a country
113B PART VIII OFFENCES AND PENALTIES-113B. Failure to furnish contemporaneous transfer pricing documentation.
(1) Any person who makes default in furnishing contemporaneous transfer pricing documentation in respect of any year of assessment, in accordance with any rules made under paragraph 154(1)(ed) to implement and facilitate the operation of section 140A, shall be guilty of an offence and shall, on conviction, be liable to a fine not less than twenty thousand ringgit and not more than one hundred thousand ringgit or to imprisonment for a term not exceeding six months or to both.
(2) In any prosecution under subsection (1), the burden of proving that contemporaneous transfer pricing documentation has been furnished shall be upon the accused person.
(3) Where a person has been convicted of an offence under subsection (1), the court may make a further order that the person shall comply with the relevant provisions of the rules under which the offence has been committed within thirty days, or such other period as the court deems fit, from the d
114 PART VIII OFFENCES AND PENALTIES-114. Wilful evasion.
(1) Any person who wilfully and with intent to evade or assist any other person to evade tax:
(a) omits from a return made under this Act any income which should be included;
(b) makes a false statement or entry in a return made under this Act;
(c) gives a false answer (orally or in writing) to a question asked or request for information made in pursuance of this Act;
(d) prepares or maintains or authorizes the preparation or maintenance of false books of account or other false records;
(e) falsifies or authorizes the falsification of books of account or other records; or
(f) makes use or authorizes the use of any fraud, art or contrivance,
shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than one thousand ringgit and not more than twenty thousand ringgit or to imprisonment for a
115 PART VIII OFFENCES AND PENALTIES-115. Leaving Malaysia without payment of tax.
(1) Any person who, knowing that a certificate has been issued in respect of him under section 104, voluntarily leaves or attempts to leave Malaysia without paying all the tax, sums and debts specified in the certificate or furnishing security to the satisfaction of the Director General for the payment thereof 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.
[(1) Am. by Act 764 of the year 2014]
(2) A police officer or immigration officer may arrest without warrant any person whom he reasonably suspects to be committing or about to commit an offence under this section.
(3) In this section "immigration officer" has the same meaning as in section 104.
116 PART VIII OFFENCES AND PENALTIES-116. Obstruction of officers.
Any person who:
(a) obstructs or refuses to permit the entry of the Director General or an authorized officer into any land, building or place in pursuance of section 80;
(b) obstructs the Director General or an authorized officer in the exercise of his functions under this Act;
(c) refuses to produce any book or other document in his custody or under his control on being required to do so by the Director General or an authorized officer for the purposes of this Act;
(d) fails to provide reasonable facilities or assistance or both to the Director General or an authorized officer in the exercise of his powers under this Act; or
(e) refuses to answer any question relating to any of those purposes lawfully asked of him by the Director General or an authorized officer,
shall be guilty of an offence and shall, on conviction, be liable to a
117 PART VIII OFFENCES AND PENALTIES-117. Breach of confidence.
(1) Any classified person who in contravention of section 138:
(a) communicates classified material to another person; or
(b) allows another person to have access to classified material,
shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding four thousand ringgit or to imprisonment for a term not exceeding one year or to both.
(1A) Any person who receives any classified material, knowing or having reasonable ground to believe at the time when he receives it that such classified material is communicated or disclosed to him in contravention of this Act, shall not use the classified material, or produce or disclose the classified material to any other person.
[(1A) Ins. Act A1576:s.6]
(1B) Any person who contravenes subsection (1A), shall be guilty of an offence and shall, on conviction, be liable to a fine
118 PART VIII OFFENCES AND PENALTIES-118. Offences by officials.
Any person having an official function under this Act who:
(a) otherwise than in good faith, demands from any person an amount in excess of the tax or penalties due under this Act;
(b) (b) withholds for his own use or otherwise any portion of any such tax or penalty collected or received by him;
(c) otherwise than in good faith, makes a false report or return (orally or in writing) of the amount of any such tax or penalty collected or received by him;
(d) defrauds any person, embezzles any money or otherwise uses his position to deal wrongfully with the Director General or any other person,
shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding three years or to both.
119 PART VIII OFFENCES AND PENALTIES-119. Unauthorized collection.
Any person who, not being authorized under this Act to do so, collects or attempts to collect tax or a penalty under this Act shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding twenty thousand ringgit or to imprisonment for a term not exceeding three years or to both.
119A PART VIII OFFENCES AND PENALTIES-119A. Failure to keep records.
Any person who, without reasonable excuse:
(a) fails to comply with an order or a notice given under subsection 82(3) or (5); or
(b) contravenes subsection 82(1), (1A), (6), (7) or (8),
shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than three hundred ringgit and not more than ten thousand ringgit or to imprisonment for a term not exceeding one year or to both.
119B PART VIII OFFENCES AND PENALTIES-119B. Failure to comply with rules made under paragraph 154(1)(c) on mutual administrative assistance.
(1) Except as provided in section 112A, any person who fails to comply with any rules made under paragraph 154(1)(c) to implement or facilitate the operation of an arrangement having effect under section 132, 132A and 132B, where such arrangement relates to the automatic exchange of information or the furnishing of a country-by-country report, shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than twenty thousand ringgit and not more than one hundred thousand ringgit or to imprisonment for a term not exceeding six months or to both.
[(1) Am. Act A1556:s.4]
(2) In any prosecution under subsection (1), the burden of proving that any rules made under paragraph 154(1)(c) to implement or facilitate the operation of an arrangement having effect under section 132, 132A and 132B, where such arrangement relates to the automatic exchange of information or the furnishing of a country-by-
120 PART VIII OFFENCES AND PENALTIES-120. Other offences.
(1) Any person who without reasonable excuse:
(a) fails to comply with a notice given under section 78, 79, subsection 80(3), section 81, subsection 84(1), section 85, 87 or subsection 106A(1);
[(a) Am. Act 833:s.22]
(b) fails to furnish a return in accordance with subsection 83(1) or to prepare and render a statement in accordance with subsection 83(1A) or 83A(1);
[(b) Subs. by Act 702: s.12; Am. by Act 742/2012]
(c) fails to give the notice required by subsection 83(2), (3) or (4);
(d) contravenes section 82B or 89, or subsection 82C(1), 82C(6), 82C(7), 84(2), 86(1), 106A(2) or 153(1);
[(d) Am. by Act 851; Act 833:s.22]
(e) fails to comply with a direction given under subsection 83(5) or section 107; or
[Am. by Act 683: s.28]
121 PART VIII OFFENCES AND PENALTIES-121. Additional provisions as to offences under sections 113, 115, 116, 118 and 120.
(1) No proceedings for an offence under section 113, 115, 116, 118 or 120 shall be instituted more than twelve years after the offence was committed.
(2) Any person who aids, abets or incites another person to commit an offence under section 113, 115, 116 or 118 shall be deemed to have committed the same offence and shall be liable to the same penalty.
122 PART VIII OFFENCES AND PENALTIES-122. Tax, etc, payable notwithstanding institution of proceedings.
The institution of proceedings or the imposition of a penalty, special penalty, fine or term of imprisonment under this Part shall not relieve any person from liability for the payment of any tax (or any penalty deemed under any other Part to be tax payable under this Act) or any debt or other sum for which he is or may be liable or from liability to make any return which he is required by this Act to make.
123 PART VIII OFFENCES AND PENALTIES-123. [Deleted by Act A1028: s.4].
[Deleted by Act A1028: s.4] .
124 PART VIII OFFENCES AND PENALTIES-124. Power to compound offences and abate or remit surcharge or penalties.
[Shoulder note Am. Act 831:s.25]
(1) Where any person has committed any offence under this Act, the Director General may at any time before conviction compound the offence and order that person to pay such sum of money, not exceeding the amount of the maximum fine and any special penalty to which that person would have been liable if he had been convicted of the offence, as he thinks fit:
Provided that the Director General shall not exercise his powers under this section unless that person in writing admits that he has committed the offence and requests the Director General to deal with the offence under this section.
(2) Where under this section the Director General compounds an offence committed by any person and makes an order accordingly:
(a) the order shall be made in writing under the hand of the Director General and there shall be attached to it the written admission an
125 PART VIII OFFENCES AND PENALTIES-125. Recovery of penalties imposed under Part VIII.
(1) Special penalties imposed under subsection 112(1A), 113(1) or 114(1) shall be recoverable in the same way as fines imposed on conviction.
[(1) Am. Act 773:s.21]
(2) Any penalty imposed on any person under subsection 44A(9), 112(3) or 113(2) shall be collected as if it were part of the tax payable by that person, but shall not be treated as tax so payable for the purposes of any provision of this Act other than sections 103 to 106.
[(2) Am. Act 644:s.24]
126 PART VIII OFFENCES AND PENALTIES-126. Jurisdiction of subordinate court.
Notwithstanding any other written. law, a subordinate court (as defined in Schedule 5) shall have power to try any offence under this Act and on conviction to impose the full penalty therefor.
127 PART IX EXEMPTIONS, REMISSION AND OTHER RELIEF-127. Exemptions from tax: general.
(1) Notwithstanding any other provision of this Act but subject to section 127A, any income specified in Part I of Schedule 6 shall, subject to this section, be exempt from tax.
(2) The Dewan Rakyat may by resolution delete any paragraph or item in Schedule 6 or add further paragraphs or items thereto.
(3) The Minister may by statutory order:
(a) provide that the interest payable on any loan charged on the Consolidated Fund or on a State Consolidated Fund shall be exempt from tax, either generally or in respect of interest payable to persons of a particular class;
(b) exempt anyclass of persons from all or any of the provisions of this Act, either generally or in respect of any income of a particular kind or any class of income of a particular kind;
(c) declare any part of the armed forces to be a reserve force for the purposes of paragraph 9 of Part I of Schedule 6 in addi
127A PART IX EXEMPTIONS, REMISSION AND OTHER RELIEF-127A. Cessation of exemption.
(1) Notwithstanding any other provision of this Act or any other written law, where any income of a person is exempt by virtue of a repealed law, and the exemption is deemed to have been made by an order under section 127, that exemption shall cease.
(2) In this section, "repealed law" has the same meaning assigned to it under Schedule 9.
128 PART IX EXEMPTIONS, REMISSION AND OTHER RELIEF-128. [Deleted by Act 624: s.21].
[Deleted by Act 624: s.21] .
129 PART IX EXEMPTIONS, REMISSION AND OTHER RELIEF-129. Remission of tax.
(1) The tax paid or payable by any person may be remitted wholly or in part:
(a) on grounds of poverty, by the Director General; or
(b) on grounds of justice and equity, by the Minister,
and any tax so remitted shall not be regarded as tax payable for the purposes of any other provision of this Act.
(2) Where a person granted remission under subsection (1) has paid any of the tax to which the remission relates, he shall be entitled to have the amount which he has paid refunded to him as if it were an overpayment to which section 111 applies.
129A PART IX EXEMPTIONS, REMISSION AND OTHER RELIEF-129A. Other relief.
Notwithstanding any other provision of this Act, the Minister may for the purposes of section 127 provide any relief, in relation to the treatment of expenses, losses and capital allowances in arriving at the chargeable income of a person, as he thinks fit, which is not otherwise provided for in this Act.
130 PART IX EXEMPTIONS, REMISSION AND OTHER RELIEF-130. [Deleted by Act 693/2009: s.38].
[Deleted by Act 693/2009: s.38] .
131 PART IX EXEMPTIONS, REMISSION AND OTHER RELIEF-131. Relief in respect of error or mistake.
(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 some 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.
[(1) Am. by Act 755 of the year 2013]
(2) On receiving an application under subsection (1) the Director General shall inquire into the matter and, subject to this section, shall give by way of repayment of tax such relief in respect of the alleged error or mistake as 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 ci
131A PART IX EXEMPTIONS, REMISSION AND OTHER RELIEF-131A. Relief other than in respect of error or mistake.
(1) Where any person who has furnished to the Director General a return for a year of assessment in accordance with subsection 77(1) or subsection 77A(1) or (1B) and has paid tax for that year of assessment alleges that the assessment relating to that year of assessment is excessive by reason of:
[Am. by Act 851]
(a) any exemption, relief, remission, allowance or deduction granted for that year of assessment under this Act or any other written law is published in the Gazette after the year of assessment in which the return is furnished;
(b) the approval for any exemption, relief, remission, allowance or deduction is granted after the year of assessment in which the return is furnished; or
(c) a deduction not allowed in respect of payment not due to be paid under subsection 107A(2) or 109(2), section 109A, or subsection 109B(2) or 109F(2) on the day the return
132 PART IX EXEMPTIONS, REMISSION AND OTHER RELIEF-132. Double taxation arrangements.
(1) If the Minister by statutory order declares that:
(a) arrangements specified in the order have been made by the Government with the government of any territory outside Malaysia with a view of affording relief from double taxation in relation to tax under this Act or other taxes of every kind under any written law and any foreign tax of that territory; and
(b) it is expedient that those arrangements should have effect,
then, so long as the order remains in force, those arrangements shall have effect in relation to tax under this Act notwithstanding anything in any written law.
[(1)(a) Am. by Act 719/2011]
(2) Where any arrangements have effect by virtue of this section, section 138 shall not prevent the disclosure to a duly authorized servant or agent of the government with which the arrangements have been made of such information as is requir
132A PART IX EXEMPTIONS, REMISSION AND OTHER RELIEF-132A. Tax information exchange arrangements.
(1) If the Minister by statutory order declares that:
(a) arrangements specified in the order have been made by the Government with the Government of any territory outside Malaysia with a view to the exchange of information forseeably relevant to the administration or assessment or collection or enforcement of the taxes under this Act or other taxes of every kind under any written law and any foreign tax of that territory; and
(b) it is expedient that those arrangements should have effect,
then, so long as the order remains in force, notwithstanding anything in any written law, those arrangements shall have effect in relation to tax under this Act or other taxes of every kind under any written law.
(1A) For the purposes of this section, arrangements made with a view to affording relief from double taxation include any arrangements which modify the effect of arrangements so mad
132B PART IX EXEMPTIONS, REMISSION AND OTHER RELIEF-132B. Mutual administrative assistance arrangement.
(1) Notwithstanding section 132 or 132A, if the Minister by statutory order declares that:
(a) arrangements specified in the order have been made by the Government with the government of any territory outside Malaysia with a view to the mutual administrative assistance in tax matters which includes simultaneous tax examinations, automatic exchange of information or tax administrations abroad; and
(b) it is expedient that those arrangements should have effect,
then, so long as the order remains in force, notwithstanding anything in any written law, those arrangements shall have effect in relation to tax under this Act or other taxes of every kind under written law.
(1A) Where any arrangements have effect by virtue of this section, section 138 shall not prevent the disclosure to a duly authorized servant or agent of the government with which the arrangements have been made of su
132C PART IX EXEMPTIONS, REMISSION AND OTHER RELIEF-132C. International obligations.
(1) Notwithstanding section 132, 132A or 132B, if the Minister by statutory order declares that:
(a) arrangements specified in the order have been made by the Government to give effect to Malaysia's international obligations in relation to tax under this Act or other taxes of every kind under any written law; and
(b) it is expedient that those arrangements should have effect, then, so long as the order remains in force, notwithstanding anything in any written law, those arrangements shall have effect in relation to tax under this Act or other taxes of every kind under written law.
(2) Where any arrangements have effect by virtue of this section, section 138 shall not prevent the disclosure to a duly authorized servant or agent of the government with which the arrangements have been made of such information as is required to be disclosed under the arrangements.
(3) Any order ma
133 PART IX EXEMPTIONS, REMISSION AND OTHER RELIEF-133. Unilateral relief from double taxation.
Relief from double taxation in relation to tax under this Act and any foreign tax of any territory shall, where there is no order under section 132 in force in respect of that territory, be given in accordance with the appropriate provisions of Schedule 7:
Provided that no relief shall be given under this section in relation to tax payable under the laws of a province or other component part of that territory or tax levied by or on behalf of a municipality or other local body.
133A PART IXA SPECIAL INCENTIVE RELIEF-133A. Special incentive relief.
Notwithstanding any other provisions of this Act, special incentive relief shall be given in accordance with Schedule 7A and Schedule 7B.
134 PART X SUPPLEMENTAL Chapter 1 - Administration-134. The Director General and his staff.
(1) There shall be a Director General of Inland Revenue, who shall have the care and management of the tax.
(1A) The chief executive officer of the Inland Revenue Board of Malaysia appointed under subsection 6A(1) of the Inland Revenue Board of Malaysia Act 1995 shall be the Director General of Inland Revenue.
[(1A) Am. by Act 742/2012]
(1B) The deputy chief executive officers of the Inland Revenue Board of Malaysia appointed under subsection 6A(1A) of the Inland Revenue Board of Malaysia Act 1995 shall be the Deputy Directors General of Inland Revenue.
[(1B) Ins. by Act 742/2012]
(2) The Inland Revenue Board of Malaysia shall, after consulting the Director General of Inland Revenue, appoint, by notification in the Gazette :
[(2) Am. by Act 742/2012]
(a) [Deleted by Act 742/2012] ;
(b)
134A PART X SUPPLEMENTAL Chapter 1 - Administration-134A. Power of Director General to issue guidelines.
(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.
[Ins. by Act 851]
135 PART X SUPPLEMENTAL Chapter 1 - Administration-135. Power of Minister to give directions to Director General.
The Minister may give to the Director General directions of a general character (not inconsistent with this Act) as to the exercise of the functions of the Director General under this Act; and the Director General shall give effect to any directions so given.
136 PART X SUPPLEMENTAL Chapter 1 - Administration-136. Delegation of Director General's functions.
(1) Any function of the Director General under this Act (not being a function exercisable by statutory order or a function exercisable under section 152) may be exercised by a Deputy Director General.
(2) Any officer appointed under paragraphs 134(2) (b) and (c) , may exercise any function of the Director General under this Act (not being a function exercisable by statutory order or a function exercisable under section 152) except his function under section 44, subsection 137(1) and section 150.
(3) [Deleted by Act 644: s.27] .
(4) [Deleted by Act 644: s.27] .
(5) The Director General may by writing under his hand authorize any public officer or any employee of the Inland Revenue Board of Malaysia (subject to any exceptions or limitations contained in the authorization) to exercise or assist in exercising any function of the Director General under this Act which is exercisable under subsec
137 PART X SUPPLEMENTAL Chapter 1 - Administration-137. Identification of officials.
(1) Any person exercising the right of access or the right to take possession conferred by section 80 shall carry a warrant in the prescribed form issued by the Director General (or, in the case of a warrant issued to the Director General, by a Deputy Director General) which shall identify the holder and his office and shall be produced by the holder on demand to any person having reasonable grounds to make the demand.
(2) Where a person purporting to be a public officer or an employee of the Inland Revenue Board of Malaysia exercising functions under this Act produces a warrant in the form prescribed under subsection (1) or any written identification or authority, then, until the contrary is proved, the warrant, identification or authority shall be presumed to be genuine and he shall be presumed to be the person referred to therein.
138 PART X SUPPLEMENTAL Chapter 1 - Administration-138. Certain material to be treated as confidential.
(1) Subject to this section, every classified person shall regard and deal with classified material as confidential; and, if he is an official, he shall make and subscribe before the prescribed authority a declaration in the prescribed form that he will do so.
(2) No classified material shall be produced or used in court or otherwise except:
(a) for the purposes of this Act or another tax law;
(b) in order to institute or assist in the course of a prosecution for any offence committed in relation to tax or in relation to any tax or duty imposed by another tax law; or
(c) with the written authority of the Minister or of the person or partnership to whose affairs it relates.
(3) No official shall be required by any court:
(a) to produce or disclose classified material which has been supplied to him or another official otherwise than
138A Chapter 1A - Ruling-138A. Public ruling.
(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 arrangement.
(2) The Director General may withdraw, either wholly or partly, any public ruling made under this section.
(3) Notwithstanding any other provision of this Act, where a public ruling in subsection (1) applies to any person in relation to an arrangement 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 arrangement in accordance with the ruling.
[Ins. by Act 661: s.26]
Note:
Special provision relating to section 138A
Notwithstanding the provisions of section 138A of the principal Act, any public ruling that has been issued by the Director General prior to the coming
138B Chapter 1A - Ruling-138B. Advance ruling.
(1) Subject to this section or any rules prescribed under this Act, on the application made by any person, the Director General shall make an advance ruling on the application of any provision of this Act to the person and to the arrangement for which the ruling is sought.
(2) An application under subsection (1) shall be made in the prescribed form and shall contain particulars as may be required by the Director General.
(3) The Director General may at any time withdraw any advance ruling made under subsection (1) by giving a notice in writing of such withdrawal to the person to whom the ruling applies.
(4) Notwithstanding any other provision of this Act, where an advance ruling applies to any person in relation to an arrangement 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 that arrangement in accordance with the ruling.
138C Chapter 1A - Ruling-138C. Advance Pricing Arrangement.
(1) Subject to this section and any rules prescribed under this Act, on the application made to the Director General by any person who carries out a cross border transaction with an associated person:
(a) the Director General may enter into an advance pricing arrangement with that person; or
(b) in the case where section 132 applies, the competent authorities may enter into an advance pricing arrangement,
in order to determine the transfer pricing methodology to be used in any future apportionment or allocation of income or deduction to ensure the arm's length transfer prices in relation to that transaction.
(2) An application under subsection (1) shall be made in the prescribed form and shall contain particulars as may be required by the Director General.
(3) The transactions referred to in subsection (1) shall be construed as a transaction between:
<139 Chapter 2 - Controlled Companies and Powers to Protect The Revenue in Case of Certain Transactions-139. Controlled companies.
(1) For the purposes of this Act, a person shall be taken to have control of a company:
(a) if he exercises or is able to exercise or is entitled to acquire control (whether direct or indirect) over the company's affairs and in particular, without prejudice to the generality of the preceding words, if he possesses or is entitled to acquire the greater part of the share capital or voting power in the company;
(b) if he possesses or is entitled to acquire either:
(i) the greater part of the issued share capital of the company;
(ii) such part of that capital as would, if the whole of the income of the company were in fact distributed to the members, entitle him to receive the greater part of the amount so distributed; or
(iii) such redeemable share capital as would entitle him to receive on its redemption the greater part of the assets which, in the event of a winding up,
140 Chapter 2 - Controlled Companies and Powers to Protect The Revenue in Case of Certain Transactions-140. Power to disregard certain transactions.
(1) The Director General, where he has reason to believe that any transaction has the direct or indirect effect of:
(a) altering the incidence of tax which is payable or suffered by or which would otherwise have been payable or suffered by any person;
(b) relieving any person from any liability which has arisen or which would otherwise have arisen to pay tax or to make a return;
(c) evading or avoiding any duty or liability which is imposed or would otherwise have been imposed on any person by this Act; or
(d) hindering or preventing the operation of this Act in any respect,
may, without prejudice to such validity as it may have in any other respect or for any other purpose, disregard or vary the transaction and make such adjustments as he thinks fit with a view to counter-acting the whole or any part of any such direct or indirect effect of the trans
140A Chapter 2 - Controlled Companies and Powers to Protect The Revenue in Case of Certain Transactions-140A. Power to substitute price, disregard structure and impose surcharge.
(1) This section shall apply notwithstanding section 140 and subject to any rules prescribed under this Act.
(2) Subject to subsection (3), where a person in the basis period for a year of assessment enters into a transaction with an associated person for that year for the acquisition or supply of property or services, then, for all purposes of this Act, that person shall determine and apply the arm's length price for such acquisition or supply.
[(2) Am. Act 801:s.11]
(3) Where the Director General has reason to believe that any property or services referred to in subsection (2) is acquired or supplied at a price which is either less than or greater than the price which it might have been expected to fetch if the parties to the transaction had been independent persons dealing at arm's length, he may in determination of the gross income, adjusted income or adjusted loss, statutory income, total income or ch
140B Chapter 2 - Controlled Companies and Powers to Protect The Revenue in Case of Certain Transactions-140B. Special provision applicable to loan or advances to director.
(1) Without prejudice to the generality of section 140A and subject to this section, where in a basis period for a year of assessment, a company makes any loan or advances of any money from the internal funds of the company to a person who is a director of that company, the company shall be deemed to have a gross income consisting of interest from such loan or advances for that basis period.
(2) For the purposes of subsection (1), the interest for the basis period for that year of assessment shall be the aggregate sum of interest for all calendar months in the basis period and the sum of interest for each calendar month shall be determined in accordance with the following formula:
"controlled transaction" shall be construed as a financial assistance:
(a) between persons one of whom has control over the other; or
(b) between persons both of whom are cont
141 Chapter 2 - Controlled Companies and Powers to Protect The Revenue in Case of Certain Transactions-141. Powers regarding certain transactions by non-residents.
(1) Where:
(a) a person who is not resident for the basis year for a year of assessment carries on a business with another person who is resident for that basis year (that person, that other person and that year of assessment being in this section referred to as the non-resident, the resident and the relevant year respectively); and
(b) it appears to the Director General that, owing to the close connection between the resident and the non-resident and to the substantial control exercised by the non-resident over the resident, the course of business between them can be and is so arranged that the business done by the resident in pursuance of his connection with the non-resident produces to the resident in relation to the basis period for the relevant year either no income or a smaller income than that which might be expected to arise from that business,
the non-resident shall as regard
142 Chapter 3 - Miscellaneous-142. Evidential provisions.
(1) In a suit under section 106 the production of a certificate signed by the Director General giving the name and address of the defendant and the amount of tax due from him shall be sufficient evidence of the amount so due and sufficient authority for the court to give judgement for that amount.
(2) In criminal or civil proceedings under this Act any statement purporting to be signed by the Director General or an authorized officer which forms part of or is annexed to the information, complaint or statement of claim, shall, until the contrary is proved, be evidence of any fact stated therein:
Provided that this subsection shall not apply to:
(a) a statement of the intent of the accused person or other defendant; or
(b) proceedings for an offence punishable by imprisonment.
(3) A transcript of any particulars contained in a return or other document relating to tax, if
142A Chapter 3 - Miscellaneous-142A. Admissibility of electronic record.
(1) Notwithstanding any other written law, where in any proceedings under this Act an electronic record of:
(a) any prescribed form is furnished by way of electronic transmission under section 152A; or
(b) any other 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:
(i) 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
(ii) otherwise authenticated in the manner provided in the Evidence Act 1950 for authentication of documents produc
143 Chapter 3 - Miscellaneous-143. Errors and defects in assessments, notices and other documents.
(1) No assessment, notice or other document purporting to be made or issued for the purposes of this Act shall be quashed or deemed to be void or voidable for want of form, or be affected by any mistake, defect or omission therein, if it is in substance and effect in conformity with this Act or in accordance with the intent and meaning of this Act and:
(a) in the case of an assessment, the person assessed or intended to be assessed or affected thereby is designated according to common intent and understanding; and
(b) in any other case, the person to whom it is addressed and any other person referred to therein are so designated.
(2) An assessment purporting to be made or issued for the purposes of this Act shall not be impeached or affected by reason of, a mistake therein as to:
(a) the name of a person charged to tax;
(b) the descriptio
144 Chapter 3 - Miscellaneous-144. Power to direct where returns, etc, are to be sent.
The Director General may by statutory order direct that any information, return or document required to be supplied, sent or delivered to the Director General for the purposes of this Act shall, subject to any conditions contained in the order, be supplied, sent or delivered to such public officer or employee of the Inland Revenue Board of Malaysia or to such address as may be specified in the order.
145 Chapter 3 - Miscellaneous-145. Service of notice.
(1) Subject to any express provision of this Act, for the purposes of this Act notices may be served personally or by ordinary or registered post.
(2) A notice relating to tax which is sent by ordinary or registered post shall be deemed to have been served on the person (including a partnership) to whom it is addressed on the day succeeding the day on which the notice would have been received in the ordinary course of post if it is addressed:
(a) in the case of a company, partnership or body of persons having a registered office in Malaysia:
(i) to that registered office;
(ii) to its last known address; or
(iii) to any person authorized by it to accept service of process:
(b) in the case of a company, partnership or body of persons not having a registered office in Malaysia:
(i) to any registered office of the company, partners
146 Chapter 3 - Miscellaneous-146. Authentication of notices and other documents.
(1) Subject to subsection (2), every notice or other document issued, served or given for the purposes of this Act by the Director General or an authorized officer shall be sufficiently authenticated if the name and office of the Director General, is printed, stamped or otherwise written thereon.
(2) Where this Act provides for a notice, certificate or other document to be under the hand of any officer, the notice, certificate or document shall be signed in manuscript by that officer.
(3) A notice, certificate or other document issued, made, served or given for the purposes of this Act and purporting to be signed in manuscript by the Director General or an authorized officer shall be presumed, until the contrary is proved, to have been so signed.
147 Chapter 3 - Miscellaneous-147. Free postage.
[Am. Act A158]
All returns made under this Act and all remittances of tax (and any correspondence resulting from or connected with any such return or remittance) may, if posted in Malaysia in envelopes marked "Income Tax", be sent free of postage to the Director General to an officer or address specified in an order made under section 144:
Provided that the Director General may in certain cases by notice in writing require any person to send any return, document or correspondance by registered post.
148 Chapter 3 - Miscellaneous-148. Provisions as to approvals and directions given by Minister or Director General.
Where by or under this Act there is conferred on the Minister or the Director General power to give an approval or direction of any kind (not being a power exercisable by statutory order):
(a) an approval or direction given in the exercise of that power shall not be regarded as subsidiary legislation;
(b) that power shall be deemed to include:
(i) power to give any such approval or direction with retrospective effect;
(ii) power to vary or revoke any such approval or direction retrospectively or otherwise; and
(iii) power to give any such approval or direction subject to such conditions as the Minister or the Director General, as the case may be, may think fit to impose; and
(c) any such approval or direction shall take effect when it is given or, where the Minister or Director General as the case may be specifies a date on which it is to
149 Chapter 3 - Miscellaneous-149. Annulment of rules and orders laid before the Dewan Rakyat.
Where this Act provides for any rule or order to be laid before the Dewan Rakyat, the rule or order shall be laid before the Dewan as soon as may be after it has been made and, if the Dewan at or before the second meeting begun after the rule or order is laid before it resolves that the rule or order or any provision of it be annulled, the rule or order or that provision of it shall cease to have effect, without prejudice to anything previously done thereunder or the making of a new rule or order:
Provided that this section shall not apply to an order made under section 6 (2).
150 Chapter 3 - Miscellaneous-150. Power to approve pension or provident fund, scheme or society.
The Director General may, subject to such conditions as he may think fit to impose, approve any pension or provident fund, scheme or society for the purposes of this Act.
151 Chapter 3 - Miscellaneous-151. Procedure for making refunds and repayments.
Where the Director General is authorized or required by this Act to make any refund or repayment, he shall certify the amount of the sum to be refunded or repaid and cause the refund or repayment to be made forthwith.
152 Chapter 3 - Miscellaneous-152. Forms.
(1) The Director General may, either by statutory order or in such other way as seems to him to be appropriate, prescribe such forms as are required by this Act to be prescribed and such other forms as he considers ought to be prescribed in connection with the operation of this Act, and may authorize the use of a suitable substitute for any form so prescribed:
Provided that this subsection shall not apply to the form of declaration to be prescribed for the purposes of subsection 138(1).
(2) Where in order to comply with any provision of this Act a person is required to use a prescribed form, he shall not be regarded as complying with that provision unless he uses all reasonable diligence to procure and use:
(a) a printed copy of the form as prescribed under subsection (1); or
(b) a copy of any substitute for the form authorized under subsection (1), being a printed copy unless the authoriza
152A Chapter 3 - Miscellaneous-152A. Electronic medium.
(1) Any person or class of persons:
(a) shall, if so required under this Act; or
(b) may, if so allowed by the Director General,
furnish any form prescribed under this Act on an electronic medium or by way of an electronic transmission.
[(1) Subs. Act 773:s.22]
(2) For the purposes of subsection (1) , the conditions and specifications under which any prescribed form is to be furnished shall be as determined by the Director General.
(3) For the purposes of subsection (1), a person may authorize in writing a tax agent to furnish on his behalf any form prescribed under this Act in the manner provided for in subsection (1).
(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 su
153 Chapter 3 - Miscellaneous-153. *Restriction on persons holding themselves out as tax agents, tax consultants, etc.
(1) No person holding himself out as a tax agent, a tax consultant or a tax adviser (or under any other like description) shall be permitted to act in Malaysia on behalf of any person for any of the purposes of this Act unless he is a tax agent as defined in this section:
Provided that:
(a) where a company, body of persons or partnership so holds itself out in any calender year, then, if at the time of the holding out any employee of the company, member of the body or partner in the partnership (whether or not that employee, member or partner is in Malaysia) is a tax agent as so defined:
(i) it shall be sufficient for the purposes of this subsection if there is present in Malaysia for a period or periods in that year amounting in all to more than one hundred and eighty-two days an employee, member or partner, as the case may be (not being necessarily the same employee, member or partner through
154 Chapter 3 - Miscellaneous-154. Power to make rules.
(1) The Minister may make rules:
(a) providing for the deduction and payment of tax at the source in respect of income from any employment and income of the kind mentioned in paragraph 4 (e) and for the recovery of tax which has or should have been so deducted;
(b) prescribing, except where subsection 152(1) applies, anything required by this Act to be prescribed;
(c) mplementing or facilitating the operation of an arrangement having effect under section 132, 132A, 132B or 132C;
[(c) Am. Act 719:s.23; Am. Act 773:s.23; Am. Act A1576:s.10]
(d) regulating the practice and procedure in appeals to the Special Commissioners and the Special Commissioners' own procedure;
(e) requiring any person chargeable to tax who intends to leave Malaysia to produce a certificate that he has paid all tax and other sums due from him under
154A Chapter 3 - Miscellaneous-154A. Power to enter into an agreement with regard to tax liability.
(1) Notwithstanding any other provisions of this Act, the Government may enter into an agreement with any person with regard to ascertainment of his adjusted income or adjusted loss or tax chargeable on him where such agreement is, in the opinion of the Minister, just and equitable or in the interest of the Government or any State Government.
(2) Any such agreement may include:
(a) provision for disallowing (wholly or in part) outgoings or expenses which but for the agreement would have been allowed as a deduction; or
(b) provision for foregoing (wholly or in part) by any person of his entitlement to any relief or credit due to him under the Act.
155 Chapter 3 - Miscellaneous-155. Repeals.
(1) The Acts and Ordinances specified in Schedule 8 are hereby repealed, to the extent therein specified, with effect from 1st January, 1968.
(2) All subsidiary legislation made under any Ordinance wholly repealed by subsection (1) is hereby revoked with effect from 1st January, 1968.
156 Chapter 3 - Miscellaneous-156. Transitional and saving provisions.
Subject to section 127A, the transitional and saving provisions in Schedule 9 shall have effect notwithstanding section 155 or any other provision of this Act.
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