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1 CHAPTER I PRELIMINARY-1. Short title.

This Act may be cited as the Finance Act 2021.

2 CHAPTER I PRELIMINARY-2. Amendment of Acts.

The Income Tax Act 1967 [ Act 53 ], the Real Property Gains Tax Act 1976 [ Act 169 ], the Stamp Act 1949 [ Act 378 ], the Petroleum (Income Tax) Act 1967 [ Act 543 ], the Labuan Business Activity Tax Act 1990 [ Act 445 ], the Promotion of Investments Act 1986 [ Act 327 ], the Finance Act 2012 [ Act 742 ] and the Finance Act 2018 [ Act 812 ] are amended in the manner specified in Chapters II, III, IV, V, VI, VII, VIII and IX respectively.

3 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-3. Commencement of amendments to the Income Tax Act 1967.

(1) Sections 4, 6, 13, 14, 16, 17, 18, 20, 21, 22, 23, 24, 25 and 27, paragraph 5 (a) , paragraph 5 (b) in relation to paragraph 6(1) (o) of the Income Tax Act 1967 and paragraph 26 (b) in relation to Part XIX of Schedule 1 to the Income Tax Act 1967 come into operation on 1 January 2022.

(2) Sections 7, 10, 11, 12, 15, 19 and 28, paragraph 9 (b) in relation to subparagraph 46(1) (h) (iii) of the Income Tax Act 1967 and paragraph 9 (c) have effect for the year of assessment 2022 and subsequent years of assessment.

(3) Paragraph 5 (b) in relation to paragraph 6(1) (p) of the Income Tax Act 1967 and paragraph 26 (b) in relation to Part XX of Schedule 1 to the Income Tax Act 1967 come into operation from 1 January 2022 until 30 June 2022.

(4) Section 8 is deemed to have effect for the year of assessment 2019 and subsequent years of assessment.

(5)

4 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-4. Amendment of section 5.

The Income Tax Act 1967, which is referred to as the "principal Act" in this Chapter, is amended in subsection 5(1A) by inserting after the words "109D," the words "109DA in respect of a non-resident unit holder other than an individual,".

5 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-5. Amendment of section 6.

Subsection 6(1) of the principal Act is amended:

(a) in paragraph (n) , by substituting for the full stop at the end of that paragraph a semicolon; and

(b) by inserting after paragraph (n) the following paragraphs:

" (o) subject to section 109DA but notwithstanding any other provisions of this Act, income tax shall be charged for each year of assessment upon the income of a unit holder other than an individual which consists of interest distributed or credited by a unit trust that is a retail money market fund referred to in subsection 61(1A) at the appropriate rate as specified under Part XIX of Schedule 1;

(p) income tax shall be charged upon the income of a person who is a resident which is received in Malaysia from outside Malaysia from 1 January 2022 until 30 June 2022 at the appropriate rate as specified under Part XX of Schedule 1.".

6 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-6. Amendment of section 6D.

Paragraph 6d(3) (c) of the principal Act is amended by substituting for the words "31 December 2021" the words "31 December 2022".

7 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-7. Amendment of section 39.

Subsection 39(1) of the principal Act is amended:

(a) in paragraph (q) , by deleting the word "or" at the end of that paragraph;

(b) in paragraph (r), by substituting for the full stop at the end of that paragraph the words "; or"; and

(c) by inserting after paragraph (r) the following paragraph:

" (s) any payment from which tax is deductible under section 107d, if tax has not been deducted therefrom and paid to the Director General in accordance with that section:

Provided that:

(i) this paragraph shall not apply if the payer has paid the amount of tax and the increased sum due from him to the Government in accordance with subsection 107D(3); and

(ii) where such amount of tax and the increased sum are paid after the due date for the furnishing of a return for a year of assessment that relates to such ta

8 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-8. Amendment of section 44.

Subsection 44(5F) of the principal Act is amended by substituting for the word "seven" the word "ten".

9 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-9. Amendment of section 46.

Subsection 46(1) of the principal Act is amended:

(a) in subparagraph (f) (iii):

(i) by substituting for the words "years of assessment 2021 and 2022" the words "years of assessment 2022 and 2023"; and

(ii) by substituting for the words "one thousand ringgit" the words "two thousand ringgit";

(b) by substituting for paragraph (h) the following paragraph:

" (h) an amount limited to a maximum of one thousand ringgit expended or deemed expended under subsection (3) in that basis year by that individual on himself or on his wife or on his child, or in the case of a wife, on herself or on her husband or on her child, in respect of:

(i) complete medical examination expenses as evidenced by receipts issued by a hospital or a medical practitioner registered with the Malaysian Medical Council;

(ii)

10 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-10. Amendment of section 49.

Section 49 of the principal Act is amended:

(a) in paragraph (1) (b) , by inserting after the words "Employees Provident Fund Act 1991 [ Act 452 ]" the words ", or a pensionable officer within the meaning of section 2 of the Pensions Act 1980"; and

(b) in subsection (2), by inserting after the words "subsection (1)," the words "other than voluntary contributions made by a self-employed person within the meaning of the Employees Provident Fund Act 1991 or a pensionable officer within the meaning of section 2 of the Pensions Act 1980,".

11 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-11. Amendment of section 50.

Subsection 50(3) of the principal Act is amended by inserting after the words "Employees Provident Fund Act 1991" the words ", or as a pensionable officer within the meaning of section 2 of the Pensions Act 1980".

12 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-12. Amendment of section 60AA.

Section 60AA of the principal Act is amended:

(a) in subparagraph (9) (a) (iii):

(i) by inserting after the words "in connection with the" the words "family fund,"; and

(ii) by deleting the words ", or any other fee receivable in respect of an investment fund from the family fund";

(b) in subparagraph (9) (b) (iii):

(i) in subsubparagraph (A):

(A) by inserting after the words "in relation to the" the words "family fund,"; and

(B) by inserting the word "or" at the end of that subsubparagraph;

(ii) in subsubparagraph (B):

(A) by inserting after the words "in relation to the" the words "family fund,"; and

(B) by substituting for the word "or" at the end of that subsubparagraph the word "and"; and

(iii) by deleting subsubparagraph (C

13 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-13. Amendment of section 61.

Proviso to subsection 61(1A) of the principal Act is amended by inserting after the words "section 61A" the words "or paragraph 35A of Schedule 6 on the income of a unit trust in respect of interest derived from Malaysia and paid or credited to a unit trust that is a retail money market fund which is distributed to a unit holder other than an individual".

14 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-14. New section 66A.

The principal Act is amended by inserting after section 66 the following section:

" Tax identification number

66A. (1) For the purposes of this Act, the following person shall have a tax identification number:

(a) any person who is assessable and chargeable to tax under this Act;

(b) any person who is required under this Act to furnish a return; or

(c) any person who is a citizen aged eighteen years old and above.

(2) The tax identification number referred to in subsection (1) shall be assigned by the Director General as he may determine.

(3) Any person who has been assigned a reference number by the Director General in exercising his powers and functions under this Act on or before 1 January 2022 is deemed to have been assigned a tax identification number under this Act and the reference number shall be the tax id

15 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-15. Amendment of section 77A.

Section 77A of the principal Act is amended by substituting for subsection (4) the following subsection:

"(4) Where a company, limited liability partnership, trust body or co-operative society is required to prepare financial statements in accordance with any written law, the return furnished under this section shall be made based on such financial statements.".

16 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-16. Amendment of section 89.

Section 89 of the principal Act is amended by substituting for the words "in writing" the words "in the prescribed form".

17 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-17. Amendment of section 97A.

Subsection 97A(10) of the principal Act is amended by substituting for paragraph (a) the following paragraph:

" (a) the applicant may, within six months after being informed of the decision, request in the prescribed form for the Director General to forward the application to the Special Commissioners;".

18 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-18. New section 106A.

The principal Act is amended by inserting after section 106 the following section:

" Power to call for bank account information for purpose of making garnishee order application

106A . (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) an

19 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-19. Amendment of section 107C.

Subsection 107C(10A) of the principal Act is amended:

(a) in paragraph (a) , by inserting after the words "company," the words "limited liability partnership,";

(b) in paragraph (c) , by inserting after the words "company," the words "limited liability partnership,"; and

(c) in the proviso, by inserting after the words "company," the words "limited liability partnership,".

20 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-20. New section 107D.

The principal Act is amended by inserting after section 107C the following section:

" Deduction of tax from payment made to agent, etc.

107D. (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:

21 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-21. New section 109DA.

The principal Act is amended by inserting after section 109d the following section:

" Deduction of tax on distribution of income of unit trust to unit holder other than individual

109DA . (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.

22 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-22. Amendment of section 120.

Subsection 120(1) of the principal Act is amended:

(a) in paragraph (a) , by substituting for the words "or 87" the words ", 87 or subsection 106A(1)"; and

(b) in paragraph (d) , by substituting for the words "or subsection 153(1)" the words ", subsection 106a(2) or 153(1)".

23 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-23. Amendment of section 127.

The proviso to subsection 127(5) of the principal Act is amended by substituting for the words "or 109D" wherever appearing the words ", 109D or 109DA".

24 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-24. Amendment of section 131.

Subsection 131(5) of the principal Act is amended by substituting for paragraph (a) the following paragraph:

" (a) the applicant may, within six months after being informed of the decision, request in the prescribed form for the Director General to forward the application to the Special Commissioners;".

25 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-25. Amendment of section 131A.

Subsection 131A(5) of the principal Act is amended by substituting for paragraph (a) the following paragraph:

" (a) the applicant may, within six months after being informed of the decision, request in the prescribed form for the Director General to forward the application to the Special Commissioners;".

26 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-26. Amendment of Schedule 1.

Schedule 1 to the principal Act is amended:

(a) in Part I, in paragraph 2:

(i) by renumbering the existing paragraph as subparagraph (1); and

(ii) by inserting after the renumbered subparagraph (1) the following subparagraph:

"(2) Notwithstanding subparagraph (1), income tax shall be charged for a year of assessment on the chargeable income of a company other than a company to which paragraph 2a applies which has chargeable income exceeding one hundred million ringgit in the basis period for the year of assessment 2022 at the following rates:

Chargeable income

RM

Rate of income t

27 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-27. Amendment of Schedule 6.

Schedule 6 to the principal Act is amended in Part I:

(a) by substituting for paragraph 28 the following paragraph:

"28. The income arising from sources outside Malaysia and received in Malaysia by any person who is not resident in Malaysia.";

(b) in paragraph 33A, by substituting for subparagraph (2) the following subparagraph:

"(2) The exemption under subparagraph (1) shall not apply to:

(a) interest paid or credited to a company in the same group; or

(b) interest paid or credited by a special purpose vehicle to a company pursuant to the issuance of asset-backed securities lodged with the Securities Commission Malaysia from 1 January 2022 where the company and the person who established the special purpose vehicle solely for the issuance of the asset-backed securities are in the same group.";

28 CHAPTER II AMENDMENTS TO THE INCOME TAX ACT 1967-28. Amendment of Schedule 7A.

Schedule 7a to the principal Act is amended:

(a) in paragraph 2B:

(i) in subparagraph (a) , by substituting for the words "and 2022" the words ", 2022, 2023 and 2024";

(ii) in subparagraph (b) :

(A) by substituting for the words "and 2022" the words ", 2022, 2023 and 2024"; and

(B) by deleting the word "or" at the end of that subparagraph;

(iii) in subparagraph (c) :

(A) by substituting for the words "year of assessment 2022" the words "years of assessment 2022, 2023 and 2024"; and

(B) by substituting for the full stop at the end of that subparagraph the words "; or"; and

(iv) by inserting after subparagraph (c) the following subparagraphs:

" (d) ends in the year of assessment 2022, an allowance under paragraph 1 or 1a shall be given

29 CHAPTER III AMENDMENTS TO THE REAL PROPERTY GAINS TAX ACT 1976-29. Commencement of amendments to the Real Property Gains Tax Act 1976.

This Chapter comes into operation on 1 January 2022.

30 CHAPTER III AMENDMENTS TO THE REAL PROPERTY GAINS TAX ACT 1976-30. Amendment of section 21B.

The Real Property Gains Tax Act 1976, which is referred to as the "principal Act" in this Chapter, is amended in section 21B, by substituting for subsection (1A) the following subsection:

"(1A) For the purposes of subsection (1), where the disposer in a disposal referred to in that subsection is:

(a) a disposer under Part II of Schedule 5, the acquirer shall, in relation to disposal within a period of three years after the acquisition date of the chargeable asset, retain the whole of that money or a sum not exceeding five per cent of the total value of the consideration, whichever is the less, and whether or not that amount is so retained, the acquirer shall within a period of sixty days after the date of such disposal pay that amount to the Director General; or

(b) a disposer under Part III of Schedule 5, the acquirer shall retain the whole of that money or a sum not exceeding seven p

31 CHAPTER III AMENDMENTS TO THE REAL PROPERTY GAINS TAX ACT 1976-31. Amendment of section 32.

Subsection 32(1) of the principal Act is amended:

(a) by inserting after the word "tax" the words ", sums or debt"; and

(b) by substituting for the words "not exceeding five thousand ringgit" the words "not less than two hundred ringgit and not more than twenty thousand ringgit".

32 CHAPTER III AMENDMENTS TO THE REAL PROPERTY GAINS TAX ACT 1976-32. New section 57B.

The principal Act is amended by inserting after section 57a the following section:

" Tax identification number

57B. For the purposes of this Act, every person shall use the tax identification number assigned by the Director General under section 66a of the Income Tax Act 1967.".

33 CHAPTER III AMENDMENTS TO THE REAL PROPERTY GAINS TAX ACT 1976-33. Amendment of Schedule 2.

Schedule 2 to the principal Act is amended:

(a) in paragraph 3, by substituting for subsubparagraph 3(1) (b) the following subsubparagraph:

" (b) (i) the transfer of assets between spouses; or

(ii) the transfer of assets owned by an individual, by the wife of the individual or by an individual jointly with his wife or with a connected person, by a nominee for the individual, a nominee for the wife of the individual or a nominee for both, or by a trustee for the individual, a trustee for the wife of the individual or a trustee for both, to a company resident in Malaysia or not, controlled by the individual, by the wife of the individual, by the individual jointly with his wife or with a connected person, by the nominee for the individual, the nominee for the wife of the individual or the nominee for both, or by the trustee for the individual, the trustee for the wife of the indiv

34 CHAPTER III AMENDMENTS TO THE REAL PROPERTY GAINS TAX ACT 1976-34. Amendment of Schedule 4.

Schedule 4 to the principal Act is amended in paragraph 2 by substituting for the formula to that paragraph the following formula:

" (a) relating to the disposal of real property:

A	x	C
(b) in Part II, by substituting for the words "society registered under the Societies Act 1966 [ Act 335 ]" the words "body of persons registered under any written law in Malaysia".

36 CHAPTER IV AMENDMENTS TO THE STAMP ACT 1949-36. Commencement of amendments to the Stamp Act 1949.

This Chapter comes into operation on 1 January 2022.

37 CHAPTER IV AMENDMENTS TO THE STAMP ACT 1949-37. New section 36D.

The Stamp Act 1949, which is referred to as the "principal Act" in this Chapter, is amended by inserting after section 36c the following section:

" Finality of assessment

36D. (1) For the purposes of this Act, an assessment shall be final and conclusive where:

(a) no valid notice of appeal against the assessment has been given under section 39 within the time specified by that section;

(b) the assessment has been determined on appeal and there is no right of further appeal; or

(c) a valid notice of appeal against the assessment has been given but the appellant dies before the hearing of the appeal by the High Court is commenced or completed and no personal representative of the estate of the deceased appellant applies to the High Court within two years after his death to proceed with or complete the hearing.

(2) Nothing in

38 CHAPTER IV AMENDMENTS TO THE STAMP ACT 1949-38. Amendment of section 37.

Section 37 of the principal Act is amended by inserting after subsection (2) the following subsection:

"(2A) Where an instrument is chargeable with duty which exceeds ten ringgit and the duty is exempted, the person bringing the instrument to the Collector shall pay a fee of ten ringgit for the Collector to certify by indorsement on such instrument that the duty is exempted.".

39 CHAPTER IV AMENDMENTS TO THE STAMP ACT 1949-39. Amendment of section 39.

Section 39 of the principal Act is amended:

(a) in subsection (4), by substituting for the word "If" the words "Subject to subsection (4A), if"; and

(b) by inserting after subsection (4) the following subsection:

"(4A) Nothing in this section shall operate to compel the Collector to refund the excess amount of duty which may have been paid in conformity with the erroneous assessment, together with any fine or penalty which may have been paid unless the assessment has become final and conclusive in accordance with section 36D.".

40 CHAPTER IV AMENDMENTS TO THE STAMP ACT 1949-40. Amendment of section 57.

Paragraph (a) of the proviso to section 57 of the principal Act is amended by substituting for the words "twelve months" wherever appearing the words "twenty-four months".

41. Amendment of section 58.

Section 58 of the principal Act is amended by substituting for the words "twelve months" wherever appearing the words "twenty-four months".

42 CHAPTER IV AMENDMENTS TO THE STAMP ACT 1949-42. Amendment of section 77A.

Subsection 77A(1) of the principal Act is amended:

(a) in paragraph (c) , by deleting the word "or" at the end of that paragraph;

(b) in paragraph (d) , by substituting for the full stop at the end of that paragraph a semicolon; and

(c) by inserting after paragraph (d) the following paragraphs:

" (e) to obtain a review of an assessment in a case where section 38A applies; or

(f) to obtain a refund of duty paid in a case where section 57, 58 or 80B, or subsection 21(7), 39(4) or 80(3) applies.".

43 CHAPTER IV AMENDMENTS TO THE STAMP ACT 1949-43. New section 77C.

The principal Act is amended by inserting after section 77B the following section:

" Tax identification number

77C. For the purposes of this Act, every person shall use the tax identification number assigned by the Director General under section 66A of the Income Tax Act 1967.".

44 CHAPTER IV AMENDMENTS TO THE STAMP ACT 1949-44. Amendment of First Schedule.

The First Schedule to the principal Act is amended by substituting for item 31 and the particulars relating to it the following item and particulars:

"31 CONTRACT NOTE:

Relating to the sale of any shares, stock or marketable securities in companies incorporated in Malaysia or elsewhere:

(a)	For every RM1,000 or fractional part of RM1,000 of the value of any shares or stock	RM1.50
(b)	For every RM1,000 or fractional part of RM1,000 of the value of any marketable securities

47 CHAPTER V AMENDMENTS TO THE PETROLEUM (INCOME TAX) ACT 1967-47. Amendment of section 41A.

Subsection 41A(10) of the principal Act is amended by substituting for paragraph (a) the following paragraph:

" (a) the applicant may, within six months after being informed of the decision, request in the prescribed form for the Director General to forward the application to the Special Commissioners;".

48 CHAPTER V AMENDMENTS TO THE PETROLEUM (INCOME TAX) ACT 1967-48. Amendment of section 43.

Section 43 of the principal Act is amended by inserting after subsection (3) the following subsection:

"(4) This section shall not apply to an assessment made under subsection 38(1) or section 39a, except where a chargeable person in respect of such assessment is aggrieved by the public ruling made under section 71b or any practice of the Director General generally prevailing at the time when the assessment is made.".

49 CHAPTER V AMENDMENTS TO THE PETROLEUM (INCOME TAX) ACT 1967-49. Amendment of section 65C.

Section 65C of the principal Act is amended by inserting after subsection (1) the following subsection:

"(1A) The Minister may, in any particular case, exempt any chargeable person from all or any of the provision of this Act, either generally or in respect of any income of a particular kind or any class of income of a particular kind.".

50 CHAPTER V AMENDMENTS TO THE PETROLEUM (INCOME TAX) ACT 1967-50. Amendment of section 66.

Subsection 66(5) of the principal Act is amended by substituting for paragraph (a) the following paragraph:

"(a) the applicant may, within six months after being informed of the decision, request in the prescribed form for the Director General to forward the application to the Special Commissioners;".

51 CHAPTER V AMENDMENTS TO THE PETROLEUM (INCOME TAX) ACT 1967-51. Amendment of section 66A.

Subsection 66A(5) of the principal Act is amended by substituting for paragraph (a) the following paragraph:

" (a) the applicant may, within six months after being informed of the decision, request in the prescribed form for the Director General to forward the application to the Special Commissioners;".

52 CHAPTER VI AMENDMENTS TO THE LABUAN BUSINESS ACTIVITY TAX ACT 1990-52. Commencement of amendments to the Labuan Business Activity Tax Act 1990.

(1) Section 53 is deemed to have come into operation on 1 January 2019.

(2) Section 54 is deemed to have effect for the year of assessment 2020 and subsequent years of assessment.

(3) Sections 55 and 56 have effect for the year of assessment 2022 and subsequent years of assessment.

(4) Sections 57 and 58 come into operation on 1 January 2022.

53 CHAPTER VI AMENDMENTS TO THE LABUAN BUSINESS ACTIVITY TAX ACT 1990-53. Amendment of section 2B.

The Labuan Business Activity Tax Act 1990, which is referred to as the "principal Act" in this Chapter, is amended in section 2b by inserting after subsection (1B) the following subsections:

"(1C) The net profits referred to in paragraph (1B) (a) shall not include any income derived from royalty and other income derived from an intellectual property right if it is receivable as consideration for the commercial exploitation of that right.

(1D) Any income derived from intellectual property right referred to in subsection (1C) is subject to tax under the Income Tax Act 1967.

(1E) In this section, "intellectual property right" has the same meaning assigned to it under subsection 4(5).".

54 CHAPTER VI AMENDMENTS TO THE LABUAN BUSINESS ACTIVITY TAX ACT 1990-54. Amendment of section 8.

Section 8 of the principal Act is amended by deleting the words "which is a Labuan trading activity".

55 CHAPTER VI AMENDMENTS TO THE LABUAN BUSINESS ACTIVITY TAX ACT 1990-55. Amendment of section 10.

Section 10 of the principal Act is amended:

(a) in the shoulder note, by inserting after the words "Statutory declaration" the words "and return of profits"; and

(b) by inserting after the words "a statutory declaration" the words "and a return of profits of the Labuan entity".

56 CHAPTER VI AMENDMENTS TO THE LABUAN BUSINESS ACTIVITY TAX ACT 1990-56. Amendment of section 11.

Section 11 of the principal Act is amended:

(a) by inserting after the words "section 5" the words "or 10"; and

(b) by inserting after the word "tax" wherever appearing the words ", if any,".

57 CHAPTER VI AMENDMENTS TO THE LABUAN BUSINESS ACTIVITY TAX ACT 1990-57. New section 16A.

The principal Act is amended by inserting after section 16 the following section:

" Director's liability

16A. (1) Notwithstanding anything contrary to this Act or any other written law, where any tax is due and payable under this Act by a company, any person who is a resident director of that company during the period in which that tax is liable to be paid by that company, shall be jointly and severally liable for such tax that is due and payable and shall be recoverable under section 14 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 company's business; and

(b) is, either on his own or with one or more associates, the owner of, or able directly or through the medium of other companies or by any other indirect

58 CHAPTER VI AMENDMENTS TO THE LABUAN BUSINESS ACTIVITY TAX ACT 1990-58. Amendment of section 23.

Paragraph 23 (b) of the principal Act is amended by inserting after the words "a statutory declaration" the words "and return of profits".

59 CHAPTER VII AMENDMENTS TO THE PROMOTION OF INVESTMENTS ACT 1986-59. Commencement of amendments to the Promotion of Investments Act 1986.

This Chapter comes into operation on 1 January 2022.

60 CHAPTER VII AMENDMENTS TO THE PROMOTION OF INVESTMENTS ACT 1986-60. Amendment of section 2.

The Promotion of Investments Act 1986, which is referred to as the "principal Act" in this Chapter, is amended in subsection 2(1):

(a) in the definition of "contract research and development company", by substituting for the words "which provides" the words "which is approved as a research and development status company under section 4h to provide"; and

(b) in the definition of "research and development company", by substituting for the words "which provides" the words "which is approved as a research and development status company under section 4h to provide".

61 CHAPTER VII AMENDMENTS TO THE PROMOTION OF INVESTMENTS ACT 1986-61. Amendment of title to Chapter 1 of Part II.

Chapter 1 of Part II of the principal Act is amended in the title, by substituting for the words " Pioneer Status" the words "Research and Development Status, and Pioneer Status ".

62 CHAPTER VII AMENDMENTS TO THE PROMOTION OF INVESTMENTS ACT 1986-62. New sections 4G, 4H, 4I, 4J, 4K and 4L.

The principal Act is amended by inserting after the title " Chapter 1- Research and Development Status, and Pioneer Status " the following sections:

" Application for approval of research and development status

4G. (1) For the purposes of this Act, a research and development company, or a contract research and development company is a company approved as a research and development status company.

(2) Any company may make an application in writing to the Minister to be approved as a research and development status company, and the Minister may impose any pre-condition for the application.

(3) Any company applying to be approved as a research and development status company shall state that the company carries on activity relating to research and development under this Act and complies with any pre-condition imposed for the application.

(4) Upon receipt of an application under su

63 CHAPTER VII AMENDMENTS TO THE PROMOTION OF INVESTMENTS ACT 1986-63. Savings and transitional.

(1) If a company falls within the definition of a research and development company or a contract research and development company under the principal Act prior to the commencement of this Chapter, the company shall, on the commencement of this Chapter, fall within the definition of a research and development company or a contract research and development company under the principal Act as amended by this Chapter for a period of six months from the commencement date, which shall be referred to as the "grace period".

(2) If the company referred to in subsection (1) intends to fall within the definition of a research and development company or a contract research and development company under the principal Act as amended by this Chapter after the expiry of the grace period, the company within the grace period, shall make a notification for the consideration of the Minister stating the desire of the company to fall within the definition of a resear

64 CHAPTER VIII AMENDMENT TO THE FINANCE ACT 2012-64. Commencement of amendment to the Finance Act 2012.

This Chapter comes into operation on 1 January 2022.

65 CHAPTER VIII AMENDMENT TO THE FINANCE ACT 2012-65. Amendment of section 3.

The Finance Act 2012 is amended by substituting for subsection 3(4) the following subsection:

"(4) Section 10 comes into operation from the year of assessment 2012 until the year of assessment 2021 and in respect of paragraph 10 (c) until the year of assessment 2025.".

66 CHAPTER IX AMENDMENT TO THE FINANCE ACT 2018-66. Commencement of amendment to the Finance Act 2018.

This Chapter is deemed to have effect from the year of assessment 2019 and subsequent years of assessment.

67 CHAPTER IX AMENDMENT TO THE FINANCE ACT 2018-67. Amendment of section 11.

The Finance Act 2018 is amended in section 11 by substituting for the words "year of assessment 2025" wherever appearing the words "year of assessment 2028".