Finance (No. 2) Act 2000

Original Language Title: Finance (No. 2 ) Act 2000

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Text of laws of MALAYSIA Act REPRINTING 608 FINANCE ACT (No. 2) order 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 6082 FINANCE ACT (No. 2) order 2000 date of Assent............ December 21, 2000, the date of publication in the Gazette......... 23 December 2000 finance (No. 2) 3 laws of MALAYSIA Act 608 FINANCE ACT (No. 2) order 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 6A 6. Amendment of section 34 7. Amendment of section 39 8. Amendment of section 44 9. Amendment of section 45 10. New section 45A 11. Amendment of section 46 12. Amendment of section 49 13. Amendment of section 50 14. Amendment of section 60 15. Amendment of section 60AA 16. Amendment of section 103 17. Amendment of section 110 18. Amendment of section 127 19. New section 127A 20. Amendment of section 128 laws of Malaysia ACT, 6084 section 21. New section 129A 22. Amendment of section 130 23. Amendment of section 156 24. Amendment of Schedule 3 25. Amendment of Schedule 4 c 26. Amendment of Schedule 6 27. Special provisions in respect of paragraph 13 table 6 CHAPTER III AMENDMENTS to the PETROLEUM (income tax) 1967 28. Commencement of the Act the amendments to the Petroleum (income tax) 1967 29. Amendment of section 16 30. Amendment of section 18 31. Amendment of section 22 32. Amendment of section 33 33. Amendment of section 45 34. Amendment of section 46 35. Amendment of section 54 36. Amendment Of Second Schedule 37. Amendment of third schedule CHAPTER IV AMENDMENTS to the REAL PROPERTY GAINS TAX ACT 1976 38. Commencement amendments to the real property gains tax Act 1976 39. Amendment of section 18 of CHAPTER V AMENDMENTS to the STAMP ACT 1949 40. Commencement amendment to the stamp Act 1949 41. Amendment of section 2 42. Amendment of section 7 of the finance (No. 2) 5 43. Amendment of section 9 44. Special provisions in respect of section 9 45. Amendment of section 46 forms 32A. The replacement of section 47A 47. Amendment of section 80 48. Amendment of first schedule Section laws of Malaysia ACT 6086 finance (No. 2) 7 laws of MALAYSIA Act 608 FINANCE ACT (No. 2) order 2000 an act to amend the income tax Act 1967, the Petroleum (income tax) in 1967, the real property gains tax Act 1976 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 (No. 2) order 2000.
Amendment Of Act 2. The income tax Act 1967 [Act 53], the Petroleum (income tax) 1967 [Act 543], real property gains tax Act 1976 [Act 169] and stamp Act 1949 [Act 378] is amended in the manner set out in Chapters II, III, IV and v. CHAPTER II AMENDMENTS to the income tax Act 1967 commencement amendments to the income tax Act 1967 3. (1) sections 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26 and 27 shall be in effect for the year of assessment 2001 and the next year of assessment.
Laws of Malaysia ACT 6088 (2) the Amendment in section 15 shall be deemed to have come into operation for years of assessment 1986 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) — (a) by inserting after the definition of "Hindu joint family" the following definition: ' "husband who elects" means the husband who is referred to in paragraph 45 (2) b; '; and (b) by inserting after the definition of "wife" the following definition: ' "wife who elects" means the wife who is referred to in paragraph 45 (2) (a); '.
Amendment of section 6A 5. The principal Act is amended by replacing subsection 6A (2) the following subsection: "(2) A rebate shall be granted for a year of assessment in the following amounts: (a) three hundred and fifty dollars 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 vehicles thirty five thousand dollars;
(b) three hundred and fifty dollars in the case of an individual who has been allowed a deduction under subsection 47 (1) or (2) for that year of assessment where his chargeable income for that year of assessment does not vehicles thirty-five thousand dollars;
(c) three hundred and fifty dollars in the case of a wife who has been allowed a deduction under section 45A for that year of assessment where her chargeable income for that year of assessment does not vehicles thirty-five thousand dollars. ".
Finance (No. 2) 9 amendment of section 34 6. Subsection 34 (6) of the principal Act is amended — (a) in paragraph (h), by substituting for the word "and" with the words "infrastructure, infrastructure and information and communication technology";
(b) by deleting the word "and" at the end of paragraph (j);
(c) in paragraph (k), by replacing the full stop at the end of the proviso with the word "and"; and (d) by inserting after paragraph (k) the following paragraph: "(l) an amount equal to the expenditure incurred by the company in the relevant period imposed on the provision of a scholarship to a student for any course of study leading to an award of a diploma, or degree (including a degree at a Masters or attained a level) or the equivalent of a diploma or degree undertaken at a higher educational institution was or registered under the laws regulating such establishment or registration in Malaysia or authorised by any order made under section 5A of the Universities and University Colleges Act 1971 [Act 30]:, likely that the scholarship — (a) shall only be given to a student — (i) who is receiving full-time instruction at such higher educational institution;
(ii) who has no means of his own; and (iii) the total income of at whose parents or guardian, as the case may be, does not vehicles five thousand dollars; and (b) shall not include payments other than payments required by such higher educational institution relating to the course of study, and educational aids and reasonable cost of living expenses during the student's period of study at such higher educational institution; and the laws of Malaysia ACT 60810 (m) an amount equal to the expenditure, not being capital expenditure, incurred by the company in the relevant period for the purposes of obtaining certification for recognized quality systems and standards, and halal certification, evidenced by a certificate issued by a certification body as determined by the Minister:, likely that the expenditure incurred in the relevant period shall be deemed to be incurred by the company in the basis period for the year of assessment in which the certificate is issued. ".
Amendment of section 39 7. Paragraph 39 (l) (k) of the principal Act is amended by substituting for the words "(other than a lorry, truck, bus, mini bus, van, station a fleet or taxi cab licensed or permitted, by the appropriate authority, for commercial transportation of goods or passengers)" with the words ", other than a motor vehicle licensed by the appropriate authority for commercial transportation of goods or passengers,".
Amendment of section 44 8. Section 44 of the principal Act is amended — (a) in subsection (6) — (i) by replacing the full stop at the end of that subsection with the periods overlap; and (ii) by inserting after subsection (6) the following proviso: "Likely that the amount to be deducted from the aggregate income of a company for the relevant year in respect of any gift of money made by that company to any institution or organization approved for the purposes of this section by the Director General shall not vehicles five per cent of the aggregate income of the company in the relevant year."; and (b) in subsection (7), in the definition of "organization" — (i) by replacing the full stop at the end of paragraph (h) with the words "; or "; and finance (No. 2) 11 (ii) by inserting after paragraph (h) of the following paragraph: "(i) an international organization as defined under the International Organization (Privileges and Immunities) Act 1992 [Act 485] carrying out such charitable activities as determined by the Minister; or (h) an organization was and maintained exclusively to administer or augment a fund was or held for the purpose of carrying out the projects towards the acculturation of the community in information and communication technology, approved by the Minister; or (k) a benevolent fund or trust account or was held for the sole purpose of handing relief or aid to an individual who has no, or insufficient means, or in the case of a dependent individuals whose parents or guardian has no insuffient, or means, to pay for the cost of the medical treatment required by such individual to treat a serious disease as defined in subsection 46 (2). "; and (c) by inserting after subsection (7) of the following subsection: "(7A) An institution or organization referred to in subsection (7) — (a) may apply not more than twenty-five percent of its accumulated fund as at the beginning of the basis period for the year of assessment for the carrying on of, or participation in, a business:, likely that the Artikel or income derived therefrom shall be used solely for charitable purposes or for the primary purpose for which the institution or Organization was was; or laws of Malaysia ACT 60812 (b) may carry out charitable activities the efforts of Malaysia with the prior consent of the Minister.
(7B) The reference to the carrying on of, or participation in, a business in paragraph (7A) (a) shall not include the carrying on of a business by an institution or organization where —

(a) the business is carried on in the course of the actual carrying out of the primary purpose of the institution or organization; or (b) the work in connection with the business is mainly carried on by persons for whose benefit spouse contributor the institution or organization was defiant. ".
Amendment of section 45 9. Section 45 of the principal Act is amended — (a) by replacing subsection (2) of the following subsection: "(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 base 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: Likely that where the wife who elects or the husband who elects is not resident for the basis year for a year of assessment, such wife or husband , as the case may be, may elect under this subsection only if she or he is a citizen. ";
Finance (No. 2) 13 (b) by replacing subsection (3) with the following: "subsection (3) For the purposes of paragraph (2) (b) — (a) for any year of assessment, that paragraph shall only apply if there is no election made by a wife or wives under paragraph (2) a for that year of assessment; and (b) the election shall only be made with one wife. "; and (c) by inserting after subsection (3) of the following subsection: "(4) Where under subsection (2) the total income of the wife who elects falls to be aggregated with that of her husband or the total income of the husband who elects falls to be aggregated with that of his wife, for a year of assessment, the wife who elects or the husband who elects , as the case may be, shall be treated as having no chargeable income for that year.
(5) The election referred to in subsection (2) shall be made before the first day of April in the following year of assessment or any I date (as may be permitted by the Director General). ".
New section 45A 10. The principal Act is amended by inserting after section 45 the following section: "Deduction for husband 45A. Where — (a) of the husband has no total income; or (b) 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 commissions (if any) to that wife under sections 46, 48 and 49, a deduction of three thousand dollars for the husband and a further two thousand five hundred dollars if he is a disabled person : Likely that this section shall only apply to one wife. ".
Laws of Malaysia ACT 60814 amendment of section 46 11. Section 46 of the principal Act is amended — (a) in subsection (1) — (i) by replacing paragraph (d) with the following paragraph: "(d) an amount limited to a but of five thousand dollars expended or deemed expended under subsection (3) in that basis year by that individual for the purchase of any necessary basic supporting equipment for his own use, if he is a disabled person or for the use of his wife , child or parent, who is a disabled person, or in the case of a wife, for her own use, if she is a disabled person, or for the use of her husband, child or parent, who is a disabled person; ";
(ii) by replacing paragraph (f) with the following paragraph: "(f) an amount limited to a but of five thousand dollars on fees expended in that basis year by that individual for any course of study up to tertiary level in any institution in Malaysia recognized by the Government undertaken for the purpose of acquiring technical, vocational, industrial, scientific or technological skills or qualifications;";
(iii) in paragraph (g) — (A) by inserting after the words "expended" words "or deemed expended under subsection (3)";
(B) by replacing the full stop overlap at the end of the first proviso with a semicolon; and (C) by deleting the proviso further; and finance (No. 2) 15 (iv) by inserting after paragraph (g) of the following paragraph: "(h) an amount limited to a but of five hundred dollars in respect of complete medical examination expenses 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, as evidenced by receipts issued by a hospital or a medical practitioner:, likely that the deduction under this paragraph shall be part of the amount is limited to a but of five thousand dollars in paragraph (g); and (i) an amount limited to a but of five hundred dollars in respect of expenses expended or deemed expended under subsection (3) in that basis year by that individual for the purchase of books, journals, magazines and other similar publications for the purpose of enhancing knowledge for his own use or for the use of his wife or child, or in the case of a wife , for her own use or for the use of her husband or child, as evidenced by receipts issued in respect of the purchase. ";
(b) in subsection (2), by substituting for the words "subsection (l) (g)" with the words "this section"; and (c) by inserting after subsection (2) of the following subsection: "(3) For the purposes of paragraphs (l) (d), (g), (h) and (i), any amount expended by the wife or the husband in the year of assessment — (a) where subsection 45 (2) applies, shall be deemed to have been expended by the husband of the wife who elects or by the wife of the husband who elects , as the case may be; or laws of Malaysia ACT 60816 (b) where the wife or the husband has no total income, shall be deemed to have been expended by the husband of that wife who has no total income or the wife of that husband who has no total income, as the case may be: Likely that where paragraph 45 (2) (b) applies or the husband has no total income , any amount expended by the husband shall be deemed to have been expended by the wife who has been allowed a deduction under section 45A. ".
Amendment of section 49 12. Section 49 of the principal Act is amended — (a) by replacing subsection (1A) with the following subsection: "(1A) For the purposes of subsection (1), where section 50 (2) or 50 (3) applies, the total deduction under that subsection shall not vehicles five thousand dollars.";
(b) in subsection (1B), by replacing paragraph (b), including the proviso, by the following paragraph: "(b) for the purposes of paragraph (a), where subsection 50 (2) applies, the total deduction under that paragraph shall not:-new vehicles three thousand dollars."; and (c) in subsection (1 c) — (i) by substituting for the words "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:" the words ", the total deduction under this subsection shall not vehicles one thousand ringgit."; and (ii) by deleting the proviso.
Finance (No. 2) 17 amendment of section 50 13. Section 50 of the principal Act is amended — (a) by replacing subsection (2) of the following subsection: "(2) 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 (lC) , which has been paid by the wife or the husband in the year of assessment — (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) where the wife or the husband has no total income, shall be deemed to have been paid by the husband of that wife who has no total income or the wife of that husband who has no total income, as the case may be: Likely that where paragraph 45 (2) (b) applies, or the husband has no total income , any amount paid by the husband shall be deemed to have been paid by the wife who has been allowed a deduction under section 45A. "; and (b) by replacing subsection (3) with the following: "subsection (3) Where subsection 45 (2) applies for the year of assessment, and in that year the wife who elects or the husband who elects 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 [Act 452] to the Employees Provident Fund — (a) the contribution shall be deemed to have been made by the husband or the wife in whose name the assessment was made, as the case may be, in that year; and the laws of Malaysia ACT 60818 (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 who elects or the husband who elects, as the case may be. ".
Amendment of section 60 14. Section 60 of the Act is amended by substituting paragraph (9) (b) with the following paragraph: "(b) an amount is calculated based on the method of computation as determined by the relevant authority regulating the insurance industry and which is consistently applied to first premiums receivable by him in that period in respect of other general policies issued by him (less the amount is deducted under subparagraph 5 (b) (ii) or 6 (b) (ii)).".
Amendment of section 60AA 15. Section 60AA principal Act is amended — (a) with the number the section existing 60AA as subsection (1) of that section; and (b) by inserting after subsection (1) of the following subsection:

"(2) In relation to management expenses incurred by any person in connection with a takaful business, that expense shall, in the application of sections 60 and 60A to that business, be deemed to have been incurred by him in respect of the life or general business referred to in those sections.".
Amendment of section 103 16. Section 103 of the principal Act is amended — (a) by replacing subsection (8) with the following subsection: "(8) Where subsection 45 (2) has applied for a year of assessment, the portion of the tax charged for that year upon the husband or the wife in whose name the assessment was made which is attributable to the total finance (No. 2) 19 income for that year of the wife who elects or the husband who elects , as the case may be, may, if necessary, be collected from the wife who elects or the husband who elects; and this Part shall apply (with any necessary modifications) as if, on the day on which a notice of assessment or a notice of assessment for that year 0 is battle on the husband or the wife that notice of assessment or notice of assessment limits been 0 battle on the wife who elects or the husband who elects, as the case may be : Likely that nothing in this subsection shall be construed as conferring on the wife who elects or the husband who elects, as the case may be, any right of appeal under section 99. "; and (b) by replacing subsection (9) with the following subsection: "(9) For the purposes of subsection (8), the part of the tax charged for a year of assessment upon the husband or the wife which is attributable to the total income for that year of the wife who elects or the husband who elects, as the case may be, shall be determined in accordance With the formula — A x C B where — (a) in the case of the wife who elects —.
A i s that wife's total income for a year of assessment;
B is the aggregate of the husbands ' and wives ' that wife's or total income; and C is the tax charged for the year of assessment where paragraph 45 (2) (a) applies; or (b) in the case of the husband who elects — A is that husband's total income for a year of assessment;
Laws of Malaysia ACT 60820 B is the aggregate of the wife's and that husband's total income; and C is the tax charged for the year of assessment where paragraph 45 (2) (b) applies. ".
Amendment of section 110 17. Section 110 of the Act is amended by replacing subsection (12) with the following subsection: "(12) Where paragraph 45 (2) (a) applies to an individual and to a wife of his for a year of assessment, any reference in the foregoing subsections to a person shall, in the application of those subsections for that year to that individual and that wife, be taken to be a reference to that individual including that wife as if she were that individual and where paragraph 45 (2) (b) applies, this subsection shall be applied to:. ".
Amendment of section 127 18. Subsection 127 (1) of the principal Act is amended by inserting after the word "Act" words "but subject to section 127A".
New section 127A 19. The principal Act is amended by inserting after section 127 the following section: "Cessation of exemption 127A. (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. ".
Finance (No. 2) 21 amendment of section 128 20. Section 128 of the principal Act is amended by replacing subsection (2) of the following subsection: "(2) Where subsection 45 (2) applies for the relevant year with respect to an individual being the husband or the wife in whose name the assessment was made, then, for the purposes of this section — (a) that husband or wife that shall be deemed to be the owner of any residence of which the wife who elects or the husband who elects , as the case may be, is the owner; and (b) any occupation in the relevant period by the wife who elects or the husband who elects, of any residence of which the husband or the wife, as the case may be, is the owner or is deemed to be the owner under paragraph () shall be deemed to be appointed by the husband or the wife in whose name the assessment was made. ".
New section 129A 21. The principal Act is amended by inserting after section 129 the following section: "Other relief 129A. 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, likely for in this Act. ".
Amendment of section 130 22. Subsection 130 (4) of the principal Act is amended in the proviso by substituting for the words "of the individual" with the words "who elects or the husband who elects, as the case may be.".
Amendment of section 156 23. Section 156 of the Act is amended by substituting for the word "The" with the words "Subject to section 127A, the".
Laws of Malaysia ACT 60822 amendment of Schedule 3 24. Schedule 3 of the principal Act is amended by replacing subparagraph 2 (2) with the following subparagraph: "(2) In the case of a motor vehicle, other than a motor vehicle licensed by the appropriate authority for commercial transportation of goods or passengers, the qualifying plant expenditure incurred on or after the first day of the basis period for the year of assessment 1991 shall be limited to a fifty thousand dollars but of : Likely that where the qualifying plant expenditure is incurred on a motor vehicle purchased on or after 28 October 2000, but the amount shall be 0 to not more than one hundred thousand dollars if the motor vehicle has not been used prior to purchase and the total cost of the vehicle does not motor vehicles one hundred and fifty thousand dollars : Likely further that where the qualifying plant expenditure is incurred between the period from 28 October 2000 to 31 December 2000, and that the monthly forms part of the basis period of a person for the year of assessment prior to the year of assessment 2001, that expenditure shall be deemed for the purpose of this Schedule to be incurred in the basis period for the year of assessment 2001. ".
Amendment of Schedule 4 c 25. Table 4 c of the principal Act is amended — (a) in paragraph 2 — (i) in subparagraph (a), by substituting for the words "1999;" the words "2003; and ";
(ii) in subparagraph (b), by substituting for the word "; and" at the end of the paragraph with the full stop; and (iii) by deleting subparagraph (c), and (b) by substituting paragraph 11 with the following paragraph: "11. In this Schedule, "approved food production project" means an agricultural project which is approved by the Minister by order published in the Gazette. ".
Finance (No. 2) 23 amendment of Schedule 6 26. Table 6 of the principal Act is amended by substituting paragraph 13 with the following paragraph: "13. The income, other than dividend income, of — (a) an institution or organization approved for the purposes of subsection 44 (6) so long as the approval remains in force; or (b) a religious institution or organization which is not operated or conducted primarily for profit and was in Malaysia which is exclusively for the purposes of religious worship or the advancement of ban. ".
Special provisions in respect of paragraph 13 Table 6 27. Notwithstanding any other provisions of the principal Act, if a person exempted in accordance with paragraph 13 table 6 before the commencement of the amendments to the paragraph in section 26 of this Act, the exemption shall cease from the year of assessment 2003 for the basis period ending in that year: provided that the exception shall be continued. under paragraph 13 of Schedule 6 as amended in this Act, if approval is given to that person upon an application made under subsection 44 (6) of the principal Act.
CHAPTER III AMENDMENTS to the PETROLEUM (income tax) Act 1967 commencement amendments to the Petroleum (income tax) 1967 28. (1) section 29, 30, 31 and 36 shall become effective from year of assessment 2001 and the next year of assessment.
(2) Section 32, 33, 34, 35 and 37 shall come into force on 1 January 2001.
Laws of Malaysia ACT 60824 amendment of section 16 29. Petroleum Act (income tax) in 1967, which is referred to as "the principal Act" in this chapter, in section 16 is amended — (a) in subsection (7B), by substituting for the words "and infrastructure, approved by the relevant authority" the words ", infrastructure and information and communication technology, approved by the Minister"; and (b) by inserting after subsection (7E) the following subsection: "(7F) There shall be deducted from the above gross income an amount equal to the amount of the expenditure incurred by the above chargeable person in the relevant period imposed on the provision of a scholarship to a student for any course of study leading to an award of a diploma, or degree (including a degree at a Masters or attained a level) or the equivalent of a diploma or degree undertaken at a higher educational institution was or registered under the laws regulating such establishment or registration in Malaysia or authorized by any order made under section 5A of the Universities and University Colleges Act 1971 [Act 30]:, likely that the scholarship — (a) shall only be given to a student — (i) who is receiving full-time instruction at such higher educational institution;
(ii) who has no means of his own; and (iii) the total income of at whose parents or guardian, as the case may be, does not vehicles five thousand dollars; and

(b) shall not include payments other than payments required by such higher educational institution relating to the course of study, and educational aids and reasonable cost of living expenses during the student's period of study at such higher educational institution.
Finance (No. 2) 25 (7G) There shall be deducted from the above gross income an amount equal to the amount of the expenditure, not being capital expenditure, incurred by the above chargeable person in the relevant period for the purposes of obtaining certification for quality systems and standards recognized and evidenced by a certificate issued by a certification body as determined by the Minister : Likely that the expenditure incurred in the relevant period shall be deemed to be incurred by the above chargeable person in the basis period for the year of assessment in which the certificate is issued. ".
Amendment of section 18 30. L8 form paragraph (l) (m) of the principal Act is amended by substituting for the words "(other than a lorry, truck, bus, mini bus, van or fleet station licensed or permitted by the appropriate authority for commercial transportation of goods or passengers)" with the words "other than a motor vehicle licensed by the appropriate authority for commercial transportation of goods or passengers".
Amendment of section 22 31. Subsection 22 (1) of the principal Act is amended by substituting the following proviso with the proviso: "Likely that the amount to be deducted from the assessable income of a chargeable person for that year of assessment in respect of any gift of money made by that person chargeable to an approved institution or organization shall not vehicles five per cent of the statutory income from his petroleum operations.".
Amendment of section 33 32. Section 33 of the principal Act is amended by inserting after subsection (1) of the following subsection: "(1A) Where the Director General exercises his powers under subsection (1), the occupiers of such lands, buildings and other 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.".
Laws of Malaysia ACT 60826 amendment of section 45 33. Section 45 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.
(lC) The decision of the Minister under subsection (1B) shall be notified in writing to the Director General and shall be final. ".
Amendment of section 46 34. Section 46 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 45 (1B) has been granted, within the extended period"; and (b) by deleting subsection (2).
Finance (No. 2) 27 amendment of section 54 35. Section 54 of the Act is amended by substituting paragraph (d) with the following paragraph: "(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;".
Amendment Of Second Schedule 36. The second schedule of the principal Act is amended by replacing subparagraph 2 (2) with the following subparagraph: "(2) In the case of a motor vehicle, other than a motor vehicle licensed by the appropriate authority for commercial transportation of goods or passengers, the qualifying plant expenditure incurred on or after the first day of the basis period for the year of assessment 1991 shall be limited to a fifty thousand dollars but of : Likely that where the qualifying plant expenditure is incurred on a motor vehicle purchased on or after 28 October 2000, but the amount shall be 0 to not more than one hundred thousand dollars if the motor vehicle has not been used prior to purchase and the total cost of the vehicle does not motor vehicles one hundred and fifty thousand dollars. ".
Amendment Of Third Schedule 37. The third schedule of the principal Act is amended — (a) in the heading "Supplemental provisions", by inserting before paragraph 38 the following paragraph: "37A. 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 esta subordinate court or in the High Court, as the case may be, shall be adopted and followed with the necessary modifications. "; and the laws of Malaysia ACT 60828 (b) in paragraph 40 of — (i) by substituting for the word "precedural" with the word "procedural"; and (ii) by substituting for the words "or the Court of Appeal" the words ", the Court of Appeal or the Federal Court" in wherever there is.
CHAPTER IV AMENDMENTS to the REAL PROPERTY GAINS TAX ACT 1976 commencement amendments to the real property gains tax Act 1976 38. This chapter shall come into operation on 1 January 2001.
Amendment of section 18 39. Real property gains tax Act 1976 is amended in subsection 18 (1) by inserting after the words "101" words ", 101 (1A), 101 (1B), 101 (1 c)".
Chapter V AMENDMENTS to the stamp Act 1949 commencement amendment to the stamp Act 1949 40. This chapter shall come into operation on 1 January 2001.
Amendment of section 2 41. Stamp Act 1949, which is referred to as "the principal Act" in this chapter, is amended in section 2 — (a) by replacing the definition "banker" with the following definition: "banker" means any person licensed under the Islamic Banking Act 1983 [Act 276] or the Banking and Financial Institutions Act 1989 [Act 372] to carry on the business of banking in Malaysia; ';
Finance (No. 2) 29 (b) in the definition of "contract note, by substituting for the word" broker "and" stockbroker "in wherever there is the word" dealer ";
(c) by inserting after the definition of "conveyance on sale" the following definition: ' "dealer" means any person licensed under the Securities Industry Act 1983 [Act 280] to carry on the business of dealing in securities in Malaysia and is recognized as a member of the company by a stock exchange; '; and (d) by inserting after the definition of "instrument" the following definition: ' "insurer" means any person licensed under the Takaful Act 1984 [Act 312] or the Insurance Act 1996 [Act 513] to carry on an insurance business in Malaysia and includes a reinsurers; '.
Amendment of section 7 42. Section 7 of the principal Act is amended by inserting after subsection (7) of the following subsection: "(8) The Second Schedule may be amended by the Minister of Finance by order published in the Gazette.".
Amendment of section 9 43. Section 9 of the principal Act is amended — (a) in subsection (1) — (i) by substituting for the words "the Minister of Finance may, in his absolute discretion, by an order published in the Gazette," the word "Collector may"; and (ii) in paragraph (c), by substituting for the word "stockbroker or insurers do pay on 1 January, 1 April, 1 July and 1 October" with the words "the dealer or insurers do pay on the 1st day of each calendar month"; and the laws of Malaysia ACT 60830 (b) in subsection (1) is included in paragraph (a), (b) and (d), and subsection (2) and (3), by substituting for the word "stockbroker" in wherever there is the word "dealer".
Special provisions in respect of section 9 44. (1) Notwithstanding the provisions of subsection 9 (1) of the principal Act before the currency of amendments to section 9 in section 43 of this Act, any authorization in respect of bankers, stockbrokers or insurance companies under that subsection shall, on 1 January 2001, provided by the Collector in accordance with section 9 as amended in this Act.
(2) a reference to a stockbroker in subsection (1) shall be construed as a reference to traders in accordance with the requirements of the situation.
Amendment of section 45 forms 32A. Subsection forms 32A (1) and (2) of the principal Act is amended by substituting for the word "broker" in wherever there is the word "dealer".
The replacement of section 47A 46. The principal Act is amended by replacing section 47A with the following section: "Penalty for late with no 47A. (1) An instrument which is not stamped within the period specified in or under section 40 or 47 may be stamped on payment of the unpaid duty and a penalty of — (a) twenty-five dollars or fifty per centum of the amount of the deficient duty, whichever sum be the greater, if the instrument is stamped within 3 months after the time for with;
(b) fifty dollars or one hundred per centum of the amount of the deficient duty, whichever sum be the greater, if the instrument is stamped later than 3 months but not later than 6 months after the time for with; or the finance (No. 2), 31 (c) one hundred dollars or two hundred per centum of the amount of the deficient duty, whichever sum be the greater, in any other case.
(2) The Collector may, if he thinks fit, reduce or remit any such penalty or the further amount is shown under paragraph 9 (l) (c) which does not vehicles five thousand dollars, and the Minister of Finance or any person authorized by him in that behalf may reduce or remit any penalty or such further amount which exceeds five thousand dollars. ".
Amendment of section 80

47. Subsection 80 (2) of the principal Act is amended by deleting the words "or the further amount is shown under paragraph 9 (l) (c)".
Amendment Of First Schedule 48. The first schedule of the principal Act is amended — (a) in item 2, under the heading "Proper nouns Stamp Duty" by substituting for the words "RM 5.00" with the words "RM 10.00", (b) in item 4, under the heading "Proper nouns Stamp Duty" by substituting for the words "RM 3.00" with the words "RM 10.00";
(c) in item 22, by inserting after subbutiran (3) subbutiran the following: "(4) Being the security for payment or repayment of money RM 10.00 made for this purpose of pursuing higher education in higher educational institutions.";
(d) in item 27 — (i) under the heading "Description of Instruments", by substituting for the word ", AGREEMENT FOR FINANCING UNDER THE Sharia" with the words "(including that under the Shariah)";
(ii) in subparagraph (a) (ii), under the heading "Proper nouns Stamp Duty", by substituting for the word "RM 2.50 for every RM500" with the words "RM 5.00 for every RM1, 000";
Laws of Malaysia ACT 60832 (iii) in subparagraph (a) (iii) — (A) under the heading "Description of Instruments", by substituting for the word "RM500" with the words "RMl, 000"; and (B) under the heading "Proper nouns Stamp Duty", by substituting for the word "RM 2.50" the words "RM 5.00"; and: (iv) in paragraph (d), in the heading "Proper nouns Stamp Duty", by substituting for the words "RM 5.00" with the words "RM 10.00";
(e) in item 32 — (i) in paragraph (a), under the heading "Proper nouns Stamp Duty", in details related to the subbutiran — (A) in subparagraph (iii), by substituting for the words "but not exceeding RM2, 000, 000;" with the full stop; and (B) by deleting subparagraph (iv);
(ii) by replacing paragraph (b) with the following paragraph: "(b) On sale of any stock, shares or marketable securities, to be computed on the price or value thereof on the date of transfer, whichever is the greater — For every RM1, 000 or RM 3.00"; and fractional part of RM1, 000 (iii) in paragraph (c), under the heading "Proper nouns Stamp Duty", by substituting for the words "RM 5.00" with the words "RM 10.00";
(f) in item 50, under the heading "Proper nouns Stamp Duty", by substituting for the word "RM 2.00" with the words "RM 10.00";
Finance (No. 2) 33 (g) in item 50A, under the heading "Proper nouns Stamp Duty", by substituting for the word "RM 3.00" with the words "RM 10.00";
(h) in item 51, under the heading "Proper nouns Stamp Duty", by substituting for the word "RM 1.00" with the words "RM 10.00";
(i) in paragraph 58 (l) a) and 58 (l) (b), subbutiran 58 (2), 58 (3) and 58 (5), paragraph 58 (6) (a) and 58 (6) (b), and (7) subbutiran 58 and 58 (8), under the heading "Proper nouns Stamp Duty", by substituting for the word "RM 2.00" with the words "RM 10.00";
(j) in item 60, under the heading "Proper nouns Stamp Duty" — (i) in paragraph (a), by substituting for the words "RM 5.00" with the words "RM 10.00"; and (ii) in paragraph (b), by substituting for the words "RM 1.00" with the words "RM 10.00";
(k) in item 61, under the heading "Proper nouns Stamp Duty", by substituting for the word "RM 1.00" with the words "RM 10.00"; and (l) in item 78, under the heading "Proper nouns Stamp Duty", by substituting for the word "RM 3.00" with the words "RM 10.00".
Laws of Malaysia ACT 60834 laws of MALAYSIA Act 608 FINANCE ACT (No. 2) order 2000 LIST AMENDMENT law short title effect amend from – no – finance (No. 2) 35 laws of MALAYSIA Act 608 FINANCE ACT (No. 2) order 2000 LIST SECTION AMENDED Section Power amend with effect from – THERE are –