Finance Act 2000

Original Language Title: Finance Act 2000

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Heusar-2 laws of MALAYSIA Act PRINT 600 FINANCE ACT 2000 Contains all amendments to 1 January 2006 PUBLISHED by the COMMISSIONER of law revision, UNDER the AUTHORITY of law REVISION ACT 1968 in COLLABORATION with PERCETAKAN NASIONAL MALAYSIA BHD 2006 laws of Malaysia ACT 6002 FINANCE ACT 2000 the date of Assent............... 30 May 2000 the date of publication in the Gazette............ 15 June 2000 Finance 3 laws of MALAYSIA Act 600 of the FINANCE ACT 2000 ARRANGEMENT of SECTIONS CHAPTER I preliminary section 1. Short title 2. Amendment Act CHAPTER II AMENDMENTS to the INCOME TAX ACT 1967 3. Commencement amendments to the income tax Act 1967 4. Amendment of section 2 5. Amendment of section 46 6. Amendment of section 49 7. The replacement of section 50 8. Deletion of section 60D 9. Amendment of section 101 10. Amendment of section 102 11. Amendment of section 107B 12. Amendment of Schedule 1 13. Amendment of Schedule 3 14. Amendment of Schedule 5 15. Amendment of Schedule 6 laws of Malaysia ACT 6004 CHAPTER III AMENDMENT to the PETROLEUM (income tax) Act 1967 Section 16. Commencement of the Act the amendments to the Petroleum (income tax) 1967 17. Amendment of section 13A 18. Amendment of second schedule CHAPTER IV AMENDMENTS to the STAMP ACT 1949 19. Commencement amendment to the stamp Act 1949 20. Amendment Of First Schedule 21. Amendment of second schedule 5 Financial laws of MALAYSIA Act 600 of the FINANCE ACT 2000 an act to amend the income tax Act 1967, the Petroleum (income tax) in 1967 and the stamp Act 1949.
[] enacted by the Parliament of Malaysia as follows: CHAPTER I preliminary short title 1. This Act may be cited as the Finance Act 2000.
Amendment Of Act 2. The income tax Act 1967 [Act 53], the Petroleum (income tax) 1967 [Act 543] and stamp Act 1949 [Act 378] is amended in the manner set out in Chapters II, III and IV.
CHAPTER II AMENDMENTS to the income tax Act 1967 commencement amendments to the income tax Act 1967 3. (1) Amendments in sections 5, 6, 7, 8, 11, 12 and 15 shall be in effect for the year of assessment 2000 with respect to the basis period ending in the year 2000 (based on the current year) and for any subsequent year of assessment.
Laws of Malaysia ACT 6006 (2) Amendments in sections 4, 9, 10 and 14 shall come into force when this Act comes into force.
(3) the Amendment in section 13 shall be in effect for the year of assessment 2000 with respect to the basis period ending in 1999 (based on the previous year) and the next year of assessment.
Amendment of section 2 4. Income tax Act 1967, which is referred to as "the principal Act" in this chapter, is amended in subsection 2 (1) by inserting after the definition of "market value" of the following definition: ' "Minister" means the Minister for the time being charged with the responsibility for finance; '.
Amendment of section 46 5. Subsection 46 (1) of the principal Act is amended — (a) by substituting paragraph (a) with the following paragraph: "(a) eight thousand dollars for that individual in respect of himself and his dependent relatives (if any), or for that Hindu joint family;";
(b) by deleting paragraph (b); and (c) in the proviso to the extension of paragraph (g), by inserting after the word "income" the words ", any amount expended by the wife in that base year shall be deemed to have been expended by that individual and".
Amendment of section 49 6. Section 49 of the principal Act is amended — (a) in paragraph (1) (a), by inserting after the word "annuity" for the words "other than an insurance policy to which subsection (1) applies";
(b) in subsection (1A), by substituting for the words "section 50 (3) (b) or (c)" with the words "subsection 50 (2) or 50 (3)";
Finance 7 (c) in subsection (1B) — (i) in paragraph (a), by substituting for the word "two" with the word "three";
(ii) in paragraph (b) — (A) by substituting for the words "section 50 (3) (b)" with the words "subsection 50 (2)"; and (B) by substituting for the word "two" with the word "three"; and (iii) of the proviso, by substituting for the word "two" with the word "three";
(d) by inserting after subsection (1B) of the following subsection: "(1 c) In the case of an individual resident for the basis year for a year of assessment who in that base year has utilized any amount standing to his credit in the Employees Provident Fund to purchase an insurance policy determined by the Employees Provident Fund Board, there shall be allowed for that year of assessment a deduction of one thousand ringgit and where section 50 (2) applies there shall be allowed for that year of assessment, in addition to the deduction allowed under this subsection already, a deduction of one thousand dollars: Likely that where the wife has no total income the total deduction under this subsection shall not vehicles one thousand ringgit. "; and (e) in subsection (3), by substituting for the words ' this section "insurance" and "deferred annuity", in relation to an individual claiming a deduction under subsection (1), ' the words ' relation to an individual claiming a deduction under subsection (1), "insurance" and "deferred annuity" '.
Laws of Malaysia ACT 6008 Replacement section 50 7. The principal Act is amended by replacing section 50 with the following section: "Application of section 49 where husband and wife are living together 50. (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 base year, and they did not in that base 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) Where the wife makes an election under subsection 45 (2) or where the wife has no total income for the year of assessment, any premium for any insurance or deferred annuity within the meaning of subsection 49 (3), or for any insurance on education or medical activity benefits within the meaning of subsection 49 (4), or for any insurance policy determined by the Employees Provident Fund Board referred to in subsection 49 (1 c) which has been paid by the wife in that year shall be deemed to have been paid by the husband.
(3) Where section 45 (2) applies to the husband and the wife for the year of assessment and in that year the wife has made or suffered the making of a contribution as an employee to an approved scheme or as a self-financial person within the meaning of the Employees Provident Fund Act 1991 to the Employees Provident Fund — (a) the contribution shall be deemed to have been made by the husband in that year; and (b) the reference to a contract of employment in paragraph 49 (2) (a) shall be deemed to include a reference to a contract of employment of the wife. ".
Deletion of section 60D 8. The principal Act is amended by deleting section 60D.
Finance 9 amendment of section 101 9. Section 101 of the principal Act is amended — (a) in subsection (1), by substituting for the words "may review" with the words "shall, within twelve months from the date of receipt of the notice of appeal, review"; and (b) by inserting after subsection (1) of the following subsection: "(1A) Where the Director General requires a longer period than twelve months to carry out the review under subsection (1), the Director General may apply to the Minister for an extension of that period not later than thirty days before the & m of the twelve month period.
(1B) On receipt of an application under subsection (1A), the Minister may grant such extension as he thinks proper nouns and reasonable in the circumstances, likely that such extension shall not:-new vehicles a period of six months from the date of & m of the twelve-month period.
(1 c) The decision of the Minister under subsection (1B) shall be notified in writing to the Director General and shall be final. ".
Amendment of section 102 10. Section 102 of the principal Act is amended — (a) in subsection (1), by inserting after the words "at any time" the words "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"; and (b) by deleting subsection (2).
Laws of Malaysia ACT 60010 amendment of section 107B 11. The proviso to subsection 107B (2) of the principal Act is amended by substituting for the words "in organising day of April" with the words "the thirtieth day of June".
Amendment of Schedule 1 12. Schedule 1 to the principal Act is amended — (a) in part I — (i) in paragraph 1, to replace existing rates with the rates of the following: "Chargeable Income RM Rate of Income Tax For every ringgit of the 2,500 0 per cent first For every ringgit of the 2,500 1 per cent next For every ringgit of the 5,000 3 per cent next For every ringgit of the 10,000 5 per cent next For every ringgit of the 15,000 9 per cent Next For every ringgit of the 15,000 15 per cent next For every ringgit of the 20,000 20 per cent next For every ringgit of the 30,000 25 per cent next For every ringgit of the 50,000 28 per cent next For every ringgit exceeding 150,000 29 per cent ";
and (ii) in paragraph 1A, by substituting for the words "30 per cent" with the words "29 per cent"; and 11 (b) in part IV, by replacing the existing rates with the rates of the following: "Chargeable Income RM Rate of Income Tax For every ringgit of the 10,000 0 per cent first For every ringgit of the 10,000 1 per cent next For every ringgit of the 10,000 4 per cent next For every ringgit of the 10,000 7 per cent next For every ringgit of the 10,000 10 per cent next For every ringgit of the 25,000 13 per cent next For every ringgit of the 25,000 17 per cent next For every ringgit of the 50,000 21 per cent next

For every ringgit of the 100,000 24 per cent next For every ringgit of the 250,000 27 per cent next For every ringgit exceeding 500,000 29 per cent ".
Amendment of Schedule 3 13. Schedule 3 of the principal Act is amended — (a) by inserting after paragraph 16 the following paragraph: "16A. Subject to this Schedule, where a person has incurred qualifying building expenditure on the construction of a building to which paragraph 67B applies and at the end of the basis period for a year of assessment the building was on land lease to the Government, there are laws of Malaysia ACT 60012 shall be made to him in relation to the income from that land lease for that year an allowance equal to three-fiftieths or such other fraction as may be comes of that expenditure. ";
(b) in subparagraph 65 (3), by substituting for the word "A" with the words "Subject to paragraph 67B, a"; and (c) by inserting after paragraph 67A of the following paragraph: "67B. (1) A building constructed by a person listed on the consumer, to an agreement between that person and into the Government on a build-lease-transfer basis shall, subject to the approval of the Minister, be treated as an industrial building for the purposes of this Schedule.
(2) Where subparagraph (1) applies — (a) the balance of residual expenditure under paragraph 68 of this Schedule shall be reduced by the amount of any compensation received; and (b) the disposal value of the asset shall be taken to be zero when the agreement expires or is terminated. ".
Amendment of Schedule 5 14. Schedule 5 to the principal Act is amended — (a) in paragraph 42 — (i) by substituting for the words "to the Supreme Court" with the words "to the Court of Appeal and the Federal Court"; and (ii) by substituting for the words "and the Supreme Court" the words ", the Court of Appeal and the Federal Court";
(b) in the part entitled "Supplemental provisions", by inserting before the paragraph 43 the following paragraph: "42A. Where any matter of procedure or practice is not likely for in this Schedule, the procedure and practice for the time being in force or in use in the subordinate court or in the High Court, as the case may be, shall be adopted and followed with the necessary modifications. "; and finance 13 (c) in paragraph 45 — (i) by substituting for the words "or the Supreme Court" the words ", the Court of Appeal or the Federal Court"; and (ii) in subparagraph (b), by substituting for the words "or the Supreme Court" the words ", the Court of Appeal or the Federal Court".
Amendment of Schedule 6 15. Schedule 6 to the principal Act is amended — (a) in paragraph forms 32A — (i) by inserting after the words "assessment," the word "derived"; and (ii) by deleting the words "any musical composition or in respect of"; and (b) by inserting after paragraph 32 c the following paragraph: "32D. Income of twenty thousand dollars for the basis year for a year of assessment, derived by an individual resident in Malaysia, being payment in respect of any musical composition:, likely that the exemption shall not apply where the payment arises to the individual as part of his emoluments in the exercise of his official duties. ".
CHAPTER III AMENDMENTS to the PETROLEUM (income tax) Act 1967 commencement amendments to the Petroleum (income tax) 1967 16. (1) except for paragraph 18 (a), (b), (c) and (d), the amendments in sections 17 and 18 shall be in effect for the year of assessment 2000 and the next year of assessment.
Laws of Malaysia ACT 60014 (2) Amendment in paragraph 18 (a), (b), (c) and (d) shall be deemed to have effect for the year of assessment 1996 and the next year of assessment.
Amendment of section 13A 17. Petroleum Act (income tax) in 1967, which is referred to as "the principal Act" in this chapter, is amended in section 13A by inserting after subsection (1) of the following subsection: "(1A) Subsection (1) shall not apply where a chargeable person (in this subsection referred to as the" disposer ") disposes of an asset in relation to which an initial or annual allowance has been made or would have been made , if claimed, to him (in this subsection referred to as the "asset") and that asset continues to be used for petroleum operations by another chargeable person (in this subsection referred to as the "acquirer") in another petroleum agreement under which the acquirer has not incurred qualifying expenditure in respect of that asset and at the time of the disposal — (a) the disposer of the asset is a company and the acquirer of the asset is a partnership in which the disposer is also a partner;
(b) the disposer of the asset and the acquirer of the asset are the same partnership but operating under separate petroleum agreements;
(c) the disposer of the asset and the acquirer of the asset are partnerships and all the partners in the partnership that is disposing of the asset are also partners in the partnership that is acquiring the asset; or (d) the disposer of the asset and the acquirer of the asset are the same company but operating under separate petroleum agreements. ".
Amendment Of Second Schedule 18. The second schedule to the principal Act is amended — (a) in paragraph 8 — (i) by substituting "subparagraph 2 (c)" with the words "subsubparagraph 2 (1) (c)";
15 (ii) in subsubperenggan (a), by inserting after the words "forty per cent" the words "or such other rate as may be comes"; and (iii) in subsubperenggan (b), by inserting after the words "twenty per cent" the words "or such other rate as may be comes";
(b) in paragraph 12 — (i) in subparagraph (1) — (A) by substituting for the word "ot" the word "to";
(B) by substituting for the words "sub-paragraph 2 (c)" with the words "subsubparagraph 2 (1) (c)";
(C) in subsubperenggan (a), by inserting after the words "ten per cent" the words "or such other rate as may be comes"; and (D) in subsubperenggan (b), by inserting after the words "eight per cent" the words "or such other rate as may be comes"; and (ii) in subparagraph (2) — (A) by substituting for the words "sub-" paragraph 2 (c) "with the words" subsubparagraph 2 (1) (c) "; and (B) by inserting after the words "ten per cent" the words "or such other rate as may be comes";
(c) in paragraph 13, by inserting after the words "two per cent" the words "or such other rate as may be comes";
(d) in subparagraph 14 (1), by inserting after the word "fraction" for the words "or such other fraction as may be comes";
Laws of Malaysia ACT 60016 (e) by inserting after paragraph 21 the following paragraph: "21A. Paragraphs 22 and 23A shall apply where a chargeable person (in this paragraph referred to as the "disposer") disposes of an asset in relation to which an initial or annual allowance has been made or would have been made, if claimed, to him (in this paragraph referred to as the "asset") and that asset continues to be used for petroleum operations by another chargeable person (in this paragraph referred to as the "acquirer") in another petroleum agreement under which the acquirer has not incurred qualifying expenditure in respect of that asset and at the time of the disposal — (a) the disposer of the asset is a company and the acquirer of the asset is a partnership in which the disposer is also a partner;
(b) the disposer of the asset and the acquirer of the asset are the same partnership but operating under separate petroleum agreements;
(c) the disposer of the asset and the acquirer of the asset are partnerships and all the partners in the partnership that is disposing of the asset are also partners in the partnership that is acquiring the asset; or (d) the disposer of the asset and the acquirer of the asset are the same company but operating under separate petroleum agreements, the disposer of the asset, the asset in question and the acquirer of the asset being in those paragraphs referred to as the disposer, the asset and the acquirer respectively. ";
(f) in subparagraph 22 (1), by inserting after the words "paragraph 23" the words "or 23A";
(g) by inserting after paragraph 23 the following paragraph: "23A. The acquirer shall be deemed to have incurred qualifying expenditure in relation to the assets of an amount equal to the sum ascertained under paragraph 22 and Finance 17 in relation to the asset — (a) the date on which the acquirer shall be deemed to have incurred the expenditure;
(b) the withdrawal of any allowance which would but for paragraph 22 and paragraph this fall to be made to the disposer;
(c) the amount of any allowance or charge to be made to or on the acquirer; and (d) such other matters as may be considered necessary by the Minister, shall be determined in such manner as may be comes by rules to be made for the purposes of paragraphs 21A and 22 and this paragraph. "; and (h) in subsubperenggan 41 (b), by inserting before the word "where" the words "subject to subparagraph 22 (1),".
CHAPTER IV AMENDMENTS to the stamp Act 1949 commencement amendment to the stamp Act 1949 19. (1) the Amendment in section 20 shall be deemed to have come into operation on 30 October 1999.
(2) the Amendment in section 21 shall have effect when this Act comes into force.
Amendment Of First Schedule 20. Stamp Act 1949, which is referred to as "the principal Act" in this chapter, is amended in the first schedule by inserting after item 49 of the following items: Item Description of Instrument Proper nouns Stamp Duty

"49A LEASE PROGRAM OR AGREEMENT FOR The same ad valorem duty LEASE PROGRAM UNDER THE PRINCIPLES the US upon a charge OF AL-IJARAH of the Shariah or mortgage for such law for the purpose of financing the total amount is.". or securing repayment of money laws of Malaysia ACT 60018 amendment of Second Schedule 21. The second schedule to the principal Act is amended by inserting after item 18 item the following: the Nature of assessment tools and the Items the Person required to cancel the Number First Schedule thereto in adhesive stamp "19. SECURITY BOND furnished An immigration officer ". to the Director General of Immigration in connection with the grant of a Professional Visit Pass for an Artiste, a Social Visit Pass and a Work Permit Pass – No. 25 19 Financial laws of MALAYSIA Act 600 of the FINANCE ACT 2000 LIST AMENDMENT law short title effect amend from – no – laws of Malaysia ACT 60020 laws of MALAYSIA Act 600 of the FINANCE ACT 2000 LIST SECTION AMENDED Section Power amend with effect from – THERE are –