Finance Act 2006

Original Language Title: Finance Act 2006

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1 financial laws of MALAYSIA Act REPRINTING 661 Finance Act 2006 As at 1 November 2012, PUBLISHED by the COMMISSIONER of law revision, UNDER the AUTHORITY of law REVISION ACT 1968 2012 2 laws of Malaysia Act Royal Assent Date 661...... December 29, 2006 date of publication in the Gazette of ... 31 December 2006 Financial 3 laws of MALAYSIA Act 661 of the Finance Act, 2006 ORDER SECTION 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 6 6. Amendment of section 6a 7. Deletion of section 6B 8. Amendment of section 13 9. Amendment of section 22 10. Amendment of section 30 11. Amendment of section 34 12. Amendment of section 35 13. Amendment of section 39 14. Amendment of section 43 15. Amendment of section 44 16. Amendment of section 44a 17. Amendment of section 46 18. Amendment of section 60f 4 laws of Malaysia Act 661 19. Amendment of section 61a 20. Amendment of section 91 21. Amendment of section 107a 22. Amendment of section 109 23. Amendment of section 109B of 24. Amendment of section 109d 25. Amendment of section 111 26. New chapter 1a 27. Special provisions relating to section 138a 28. Amendment of section 153 29. Amendment of section 154 30. Amendment of Schedule 1 31. Amendment of Schedule 3 32. Amendment of Schedule 6 33. Amendment of Schedule 7 34. Amendment of schedule 7A chapter III AMENDMENTS to the REAL PROPERTY GAINS TAX ACT 1976 35. Commencement amendments to the real property gains tax Act 1976 36. Amendment of section 9 37. Amendment of section 15 38. Amendment of Schedule 2 Chapter IV AMENDMENTS to the STAMP ACT 1949 39. Commencement amendment to the stamp Act 1949 40. Amendment of section 2 41. Amendment of section 5a 42. Amendment of section 7 43. Amendment of section 9 5 44 finance section. Amendment of section 57 45. Amendment of section 80 46. Amendment of first schedule chapter V AMENDMENTS to the PETROLEUM (income tax) 1967 47. Commencement of the Act the amendments to the Petroleum (income tax) 1967 48. Amendment of section 16 49. Amendment of section 22 of CHAPTER VI AMENDMENTS to SALES TAX ACT 1972 50. Amendment of section 31C of CHAPTER VII AMENDMENTS to the SERVICE TAX ACT 1975 51. Amendment of section 21B section 6 laws of Malaysia Act 661 Finance 7 laws of MALAYSIA Act 661 Finance Act 2006 an act to amend the income tax Act 1967, real property gains tax Act 1976, stamp Act 1949, the Petroleum (income tax) in 1967, the sales tax Act 1972 and the Service Tax Act 1975.
[As provided in this Act]
Enacted by the Parliament of Malaysia as follows: Chapter I preliminary short title 1. This Act may be cited as the Finance Act 2006.
Amendment Of Act 2. The income tax Act 1967 [Act 53], the real property gains tax Act 1976 [Act 169], the stamp Act 1949 [Act 378], Act Petroleum (income tax) 1967 [Act 543], the sales tax Act [Act 64] and Service Tax Act [Act 151] is amended in the manner set out in Chapters II, III, IV, V, VI and VII.
8 laws of Malaysia Act 661 chapter II AMENDMENTS to the income tax Act 1967 commencement amendments to the income tax Act 1967 3. (1) sections 4, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 19, 25, paragraph 30 (a), section 31, paragraph 32 (a), (b), (c) and (e), section 33 and 34 with effect from year of assessment 2007 and the next year of assessment.
(2) section 5, paragraph 24 (a), sections 26, 27, 28, 29 and paragraph 30 (b) come into force on 1 January 2007.
(3) section 18 come into force for the year of assessment 2006 and the next year of assessment.
(4) section 20 comes into operation when the start the currency of this Act.
(5) sections 21, 22, 23, paragraph 24 (b) and paragraph 32 (d) is deemed to have come into operation on 2 September 2006.
Amendment of section 2 4. Income tax Act 1967, which is referred to as "the principal Act" in this chapter, is amended in section 2 — (a) in subsection (1) — (i) in the definition of "partnership", by inserting after the words "in a partnership" the words "and any association which is listed to was a scheme of financing in accordance with the principles of Shariah"; and (ii) in the definition "public entertainer", by substituting for the word "athlete" with the word "sportsperson"; and financial 9 (b) in subsection (8), by substituting for the words "or the word" Press ", the Securities Commission or the Labuan Offshore Financial Services Authority".
Amendment of section 6 5. Subsection 6 (1) of the principal Act is amended by substituting paragraph (i) with the following paragraph: "(i) subject to section 109d but notwithstanding any other provisions of this Act, the income tax shall be charged for each year of assessment upon the income of a unit other than a unit, it explains, it explains which is a resident company which consists of income distributed by the unit trust referred to in section 61a at the appropriate rate as specified under Part X of Schedule 1 likely that the rates specified under such Part shall apply only for a period of five years commencing from the year of assessment 2007. ".
Amendment of section 6A 6. Section 6a of the principal Act is amended — (a) in subsection (1) and (4), by substituting for the word ", (3) and (3a)" with the words "and (3)"; and (b) by deleting subsection (3a).
Deletion of section 6b 7. The principal Act is amended by deleting section 6B.
Amendment of section 13 8. Subsubperenggan 13 (1) (b) (ii) (A) of the principal Act is amended by inserting after the words "leave passages" for the words "including meals and accommodation".
10 laws of Malaysia Act amendment of section 661 22 9. Subsection 22 (2) of the principal Act is amended — (a) in subparagraph (a) (ii), by inserting after a semicolon for the word "and";
(b) by substituting for the words "; and "at the end of paragraph (b) with the full stop; and (c) by deleting paragraph (c).
Amendment of section 30 10. Subsection 30 (4) of the principal Act is amended — (a) by substituting for the word "and" at the end of paragraph (a) by the word "or";
(b) by replacing paragraph (b) with the following paragraph: "(b) any allowance or aggregate amount of allowances limit been made under section 42 in computing the statutory income of the relevant person from a business for the basis period for a year of assessment (that basis period being prior to the above period) in respect of any expenditure incurred under Schedule 3 ,”; and (c) by inserting before the word "the amount is released" the words "and the whole or any part of a debt in respect of any such outgoing, expense, rent or sum, expenditure is released in the relevant period,".
Amendment of section 34 11. Subsection 34 (6) of the principal Act is amended by substituting paragraph (k) with the following paragraph: "(k) an amount equal to the expenditure incurred by the relevant person in the relevant period for sponsoring any arts, 11 cultural or heritage activity approved by the Ministry of Culture, Arts and Heritage:, likely that the amount deducted in respect of expenditure incurred for sponsoring those activities shall not in aggregate vehicles five hundred thousand dollars of which the amount is deducted in respect of expenditure incurred in sponsoring foreign arts, cultural or heritage activity shall not:-new vehicles two hundred thousand dollars; ".
Amendment of section 35 12. Subsection 35 (2) of the principal Act is amended by substituting for the words "sections 33, 34, 34a and 34B" with the words "this Act".
Amendment of section 39 13. Subsection 39 (1) of the principal Act is amended — (a) by inserting after subparagraph (l) (vii) the following subparagraph: "(viii) the provision of a benefit spouse contributor or amenity to an employee a leave consisting of passage to facilitate a yearly event within Malaysia which involves the employer, the employee and the immediate family member of that employee; or "; and (b) in paragraph (m), by inserting after the words "(l) (i)" the words "and subject to subparagraph (l) (viii)".
Amendment of section 43 14. Section 43 of the principal Act is amended by deleting subsection (5).
12 laws of Malaysia Act 661 amendment of section 44 15. Section 44 of the principal Act is amended — (a) in paragraph (1) (d), by substituting for the words "or (11a)" with the words ", (11a), (11B) or (11c)";
(b) in the proviso to subsection (6), by substituting for the word "five" with the word "seven";
(c) by replacing subsection (11a) with the following: "subsection (11a) There shall be deducted listed to this subsection from the aggregate income of a person other than an offshore company and individual for the relevant year reduced by any deduction for that year in accordance with subsection (1) an amount equal to the payment of zakat on business which is paid in the basis period for that year of above normal to an appropriate religious authority was under any written law or any person authorized by such religious authority:, likely that the amount to be deducted listed to this subsection shall not vehicles one-fortieth of the aggregate income of that person in the relevant year. "; and (d) by inserting after subsection (11a) the following subsection: "(11B) There shall be deducted from the aggregate income of a relevant person for the relevant year reduced by any deduction for that year in accordance with subsection (1) an amount equal to any gift of money or cost of contribution in kind made by the relevant person in the basis period for that year for any sports activity approved by the Minister or to any sports body approved by the Commissioner of Sports laporan jawatankuasa audit under the Sports Development Act 1997 [Act 576]:

Likely that the amount to be deducted listed to this subsection shall not:-new vehicles the difference between the amount of seven per cent of the aggregate income Finance 13 of the relevant person and the amount that has been deducted listed to the proviso to subsection (6) and subsection (11c).
(11c) There shall be deducted from the aggregate income of a relevant person for the relevant year reduced by any deduction for that year in accordance with subsection (1) an amount equal to any gift of money or cost of contribution in kind made by the relevant person in the basis period for that year for any project of national interest approved by the Minister : Likely that the amount to be deducted listed to this subsection shall not:-new vehicles the difference between the amount of seven per cent of the aggregate income of the relevant person and the total amount that has been deducted listed to the proviso to subsection (6) and subsection (11B). ".
Amendment of section 44A 16. Subsection 44a (9) of the principal Act is amended by replacing paragraph (b) with the following paragraph: "(b) the surrendering company gives an incorrect information in the return furnished under section 77a in respect of the amount of adjusted loss surrendered, the Director General may, by a notice in writing, require the surrendering company to pay a penalty equal to the amount of tax which would have been limit or undercharged by the NAMA penuntut company in consequence of the incorrect information and where the surrendering company is dissatisfied with the penalty, the surrendering company may within thirty days of being notified appeal to the Special Commissioners as if the notice were a notice of assessment and the provision of this Act relating to appeals shall apply with any necessary modifications to:. ".
14 laws of Malaysia Act 661 amendment of section 46 17. Section 46 of the principal Act is amended — (a) in subsection (1) — (i) in paragraph (f), by inserting after the words "accounting" for the word ", Islamic financing";
(ii) by deleting the word "and" at the end of paragraph (h);
(iii) in paragraph (i) — (A) by substituting for the words "seven hundred" with the words "one thousand"; and (B) by replacing the full stop at the end of the paragraph the words "; and "; and (iv) by inserting after paragraph (i) the following paragraph: "(j) an amount limited to a but of three thousand dollars in respect of expenses expended or deemed expended under subsection (3) in the basis year for that year of assessment by that individual for the purchase of personal computer (not being a personal computer used for the purpose of his own business) as evidenced by receipt : Likely that the deduction under this paragraph shall not be allowed for the two following years of assessment. "; and (b) in subsection (3), by substituting for the words "and (i)" the word ", (i) and (j)".
15 amendment of section 60f 18. Subsection 60f (2) of the principal Act is amended — (a) in the definition of "investment holding company", by inserting after the words "gross income" for the words "other than gross income from a source consisting of a business of holding of an investment"; and (b) by inserting before the definition of "investment holding company" the following definition: ' "business of holding of an investment" means the business of letting of property where a company in any year of assessment provides any maintenance or support services in respect of the property; '.
Amendment of section 61A 19. The principal Act is amended by replacing section 61a (1) with the following subsection: "(1) Where in the basis period for a year of assessment ninety per cent or more of the total income of the unit trust is distributed to the units, it explains, the total income of the unit trust for that year of assessment shall be exempt fom tax.".
Amendment of section 91 20. Paragraph 91 (4) (a) of the principal Act is amended by inserting after the word "made" the words "under this Act or the Real Property Gains Tax Act 1976 [Act 169]".
Amendment of section 107A 21. Subsection 107a (2) of the principal Act is amended by substituting for the words "an amount equal to ten per cent of the contract payment liable to deduction of tax under subsection (1) and the total sum" with the words "a sum equal to ten per cent of the amount which he fails to pay, and that amount is 0 and the sum".
16 laws of Malaysia Act amendment of section 109 22 661. Subsection 109 (2) of the principal Act is amended by substituting for the words "an amount equal to ten per cent of the interest or royalty liable to deduction of tax under subsection (1) and the total sum" with the words "a sum equal to ten per cent of the amount which he fails to pay, and that amount is 0 and the sum".
Amendment of section 109b of 23. Subsection 109B (2) of the principal Act is amended by substituting for the words "an amount equal to ten per cent of the payments liable to deduction of tax under paragraph (1) (a), (b) or (c) and the total sum" with the words "a sum equal to ten per cent of the amount which he fails to pay, and that amount is 0 and the sum".
Amendment of section 109d 24. Section 109d of the principal Act is amended — (a) in subsection (2), by substituting for the words "non-resident units, it explains" the words "other than a unit, it explains, it explains which is a unit of the resident company"; and (b) in subsection (3), by substituting for the words "an amount equal to ten per cent of the income liable to deduction of tax under that subsection and the total sum" with the words "a sum equal to ten per cent of that amount, and the amount which he fails to pay and the 0 sum".
Amendment of section 111 25. Subsection 111 (1a) of the principal Act is amended by substituting for the words "subsection 77 (1a)" with the words "section 77a".
New Chapter 1A financial 17 26. The principal Act is amended by inserting after section 138 Chapter the following: "Chapter 1a – the Ruling Public ruling 138A. (1) The Director General may at any time make a public ruling on the application of any provision of this Act in relation to any person or class of persons, or any type of arrangement.
(2) The Director General may withdraw, either wholly or partly, any public ruling made under this section.
(3) Notwithstanding any other provision of this Act, where a public ruling in subsection (1) applies to any person in relation to an arrangement and the person applies the provision in the manner stated in the ruling, the Director General shall apply the provision in relation to the person and the group only in accordance with the ruling.
The advance ruling 138b. (1) Subject to this section or any rules comes under this Act, on the application made by any person, the Director General shall make an advance ruling on the application of any provision of this Act to the person and to the arrangement for which the ruling is sought.
(2) An application under subsection (1) shall be made in the form and shall contain comes since as may be required by the Director General.
(3) The Director General may at any time withdraw any advance ruling made under subsection (1) by "a notice in writing of such withdrawal to the person to whom the ruling applies.
(4) Notwithstanding any other provision of this Act, where an advance ruling applies to any person in relation to an arrangement and the person applies the provision in the 18 laws of Malaysia Act 661 manner stated in the ruling, the Director General shall apply the provision in relation to the person and the group only in accordance with the ruling.
(5) An advance ruling on any of the provision of this Act shall apply to a person in relation to an arrangement if the provision is expressly referred to in the ruling and for the basis period for year of assessment for which the ruling applies.
(6) A ruling made under subsection (1) does not apply to a person in relation to an arrangement if — (a) the arrangement is materially different from the arrangement stated in the ruling;
(b) there was a material omission or misrepresentation in, or in connection with the application of the ruling;
(c) the Director General makes an assumption about a future event or another matter that is material to the ruling, and that assumption subsequently proves to be incorrect; or (d) the person fails to satisfy any of the conditions stipulated by the Director General. ".
Special provisions relating to section 138A 27. Notwithstanding the provisions of section 138a of the principal Act, any public ruling issued by the Director General before the commencement of that section, be deemed to have been made under that section and have effect for the year of assessment 2007 and the next year of assessment.
Amendment of section 153 28. Section 153 of the principal Act is amended — (a) by replacing subsection (3) with the following: "subsection (3) For the purposes of this Act," tax agent "means any professional accountant or person, approved by the Minister."; and finance 19 (b) in subsection (4), by substituting for the words "paragraph (3) (b) or (c)" with the words "subsection (3)".
Amendment of section 154 29. Subsection 154 (1) of the principal Act is amended by inserting after paragraph (ea) the following paragraph: "(eb) handing-over for the scope and procedure applied in relation to any ruling made under section 138a 138B or;
(ec) prescribing fees charged in relation to any ruling made under section 138B; ".
Amendment of Schedule 1 30. Table 1 of the principal Act is amended — (a) in part I — (i) in paragraph 1, by inserting after the word "1a, 2" word ", 2a"; and

(ii) in paragraphs 2 and 2a, by substituting for the words "28" wherever wherever there is word "27"; and (b) by replacing the part X with the following: "Part X 1. Notwithstanding Part I — (a) and subject to paragraphs (b) and (c), income tax shall be charged for a year of assessment on the income of a unit other than a unit, it explains, it explains which is a resident company consisting of income distributed to the units, it explains referred to in section 109d which is derived from Malaysia at the rate of 15% of gross;
(b) and subject to paragraph (c), income tax shall be charged for a year of assessment on the income of a unit, it explains which is a non-resident company consisting of income distributed to the units, it explains referred to in section 109d which is derived from Malaysia at the rate of 27% of gross; and 20 laws of Malaysia Act 661 (c) and income tax shall be charged for a year of assessment on the income of a unit, it explains which is a foreign institutional investor consisting of income distributed to the units, it explains referred to in section 109d which is derived from Malaysia at the rate of 20% of gross.
2. In this Part, "institutional investor" means a pension fund, collective investment scheme or such other person approved by the Minister. ".
Amendment of Schedule 3 31. Schedule 3 of the principal Act is amended — (a) by deleting the words "Culture, Arts and" at the end of paragraph 37f; and (b) in paragraph 42B, by inserting after the word "Education" the words "or" Minister of Higher Education.
Amendment of Schedule 6 32. Table 6 of the principal Act is amended — (a) in paragraph 15, by inserting after subparagraph (2) of the following subparagraph: "(3) In this paragraph," compensation for loss of employment "shall include any payment made by an employer to an employee of his listed to a separation scheme where employees are given an option for an early termination of an employment contract, likely that such scheme from which payment was made does not expressly or impliedly provide for the employee to be reemployed under any other scheme of employment by the same or any other employer. ";
(b) by inserting after paragraph 25B the following paragraph: "25 c. Perquisite consisting of long service, past achievement or service excellence award, 5 shows in money or otherwise, likely to an employee listed on to his employment, but to a limited amount or value of one thousand dollars for each employee for a year of assessment, likely that exemption in respect of long service award shall apply only after the employee has exercised an employment for more than ten years with the same employer. ";
21 (c) in paragraph forms 32a, by inserting after the word "Education" the words "or Ministry of Higher Education";
(d) by replacing paragraph 33 with the following paragraph: "33. Income of any person not resident in Malaysia for the basis year for a year of assessment, in respect of interest derived from Malaysia (other than such interest accruing to a place of business in Malaysia of such person) and paid or credited by any person (table 5 shows the same person or not) carrying on the business of banking or finance in Malaysia and licensed under the Banking and Financial Institutions Act 1989 or the Islamic Banking Act 1983 , or by any other institution approved by the Minister:, likely that the exemption under this paragraph shall not apply to interest paid or credited on funds required for purposes of maintaining net working funds u.s. comes by the Central Bank of Malaysia listed to section 37 of the Banking and Financial Institutions Act 1989 and subsection 5 (2) of the Islamic Banking Act 1983 , as the case may be. "; and (e) by replacing paragraph 34 with the following paragraph: "34. (1) the Income of an individual derived from exercising an employment on board a ship used in a business operated by a person being a registered owner of a ship under the Merchant Shipping Ordinance 1952 who is resident in Malaysia.
(2) For the purpose of this paragraph "ship" means a sea-going ship other than a ferry, barge, tug-boat, supply vessels, crew boat, lighter, dredger, fishing boat or other similar vessel. ".
Amendment of Schedule 7 33. Table 7 of the principal Act is amended — (a) in paragraph 5, by inserting after the words "proportion as" words "his income in respect of statutory"; and 22 laws of Malaysia Act 661 (b) in paragraph 16, in the definition of "foreign income", by inserting after the words "Malaysia" the words "or in the case of bilateral credit, includes income derived from Malaysia charged to foreign tax".
Amendment of schedule 7A 34. Table 7a of the principal Act is amended in the proviso to paragraph 3, by inserting after the words "the Federal Territory of Labuan," the word "Perlis".
Chapter III AMENDMENTS to the REAL PROPERTY GAINS TAX ACT 1976 commencement amendments to the real property gains tax Act 1976 35. (1) Section 36 is deemed to have come into force on 1 October 2005.
(2) Section 37 comes into operation when the start the currency of this Act.
(3) Section 38 is deemed to have come into operation on 2 September 2006.
Amendment of section 9 36. Real property gains tax Act 1976, which is referred to as "the principal Act" in this chapter, is amended in the national language text, by deleting the word "or" in subsection 9 (3).
Amendment of section 15 37. Paragraph 15 (3) (a) of the principal Act is amended by inserting after the word "made" the words "under this Act or the income tax Act 1967".
Finance 23 amendment of Schedule 2 38. Schedule 2 of the principal Act is amended — (a) by substituting paragraph 16 with the following paragraph: "16. If a contract for the disposal of an asset is conditional and the condition is met (with the exercise of rights under an option or otherwise), then the acquisition and disposal of assets shall be calculated as happened in the contract is made, unless — (a) the acquisition or disposal that require the approval of the Government or an authority or a Committee appointed by the Government, the disposal of the date shall be the date of approval thereof; or (b) the approval referred to in subparagraph (a) is conditional, the disposal of the date shall be the date when the conditions on the conditions are met. "; and (b) by inserting after paragraph 17 the following paragraph: "Pemindahmilikan assets to stocks 17A. Notwithstanding any other provisions of this Act — (a) If an asset acquired or held by a person in the business stock, then such person shall be deemed to be a disposal of assets liable to tax; and (b) the disposal price of taxable assets shall be equal to the market value at the date of the asset stock. ".
Chapter IV AMENDMENTS to the stamp Act 1949 commencement amendment to the stamp Act 1949 39. This chapter is deemed to have come into operation on 2 September 2006.
24 laws of Malaysia Act amendment of section 661 2 40. Stamp Act 1949, which is referred to as "the principal Act" in this chapter, is amended in section 2 by inserting after the definition of "settlement" the following definition: ' "small and medium enterprise" means — (a) in relation to the manufacturing, manufacturing related services and agro-based industries, sectors of an enterprise with full-time employees not exceeding one hundred and fifty people or annual turnover not exceeding twenty-five million dollars; and (b) in relation to the services, primary agriculture, and information and communication technology values, an enterprise with full-time employees not exceeding fifty people or annual turnover not exceeding five million ringgit; '.
Deletion of section 5A 41. The principal Act is amended by deleting section 5a.
Amendment of section 7 42. Section 7 of the principal Act is amended by replacing subsection (1) with the following subsection: "(1) Subject to any rules made under paragraph 82 (b), all duties with which any instruments are chargeable under this Act shall be paid, and payment shall be indicated on such instruments, by means of an adhesive stamp or by affixing an official receipt to such instruments.".
Amendment of section 9 43. Section 9 of the principal Act is amended — (a) in subsection (3), by inserting after the word "books" word ", records and documents"; and financial 25 (b) by inserting se previous subsection (3) of the following subsection: "(4) For the purpose of subsection (3), the banker, the dealer or an insurer shall keep and retain the books, records and documents in connection with the issue of such cheques, contract notes or policies of insurance for a period of seven years from the year in which such cheques , contract notes or policies of insurance are issued. ".
Amendment of section 57 44. Section 57 of the principal Act is amended — (a) by deleting paragraph (c); and (b) by replacing paragraph (e) with the following paragraph: "(e) the stamp on any promissory note which from any omission or error has been spoiled or rendered useless, although the same, being a promissory note, may have been delivered to the payee, likely that another completed and duly stamped promissory note produced, it is identical in every particular manufactured in correction of the error or omission , with the spoiled note; ".
Amendment of section 80 45. Section 80 of the principal Act is amended — (a) in subsection (1a) — (i) in paragraph (i), by inserting after the word "instruments" for the words "or all instruments in relation to any scheme"; and (ii) in paragraph (ii), by substituting for the words "instrument is" with the words "instruments or all instruments in relation to any scheme are"; and

26 laws of Malaysia Act 661 (b) in subsection (3), by inserting after the words "or (2)" the words "or any exemption, reduction or remission made under subsection (1a)".
Amendment Of First Schedule 46. Items 27 to the first schedule of the principal Act is amended by replacing the subbutiran (a) (i) with the following: "subbutiran (i) where the loan is to a small and medium enterprise or financing is likely to a small and medium enterprise according to the Sharia — For an amount not exceeding RM250, 000 of the aggregate of the aggregate loans or financing under the Shariah in a calendar year RM0.50 for every RM1 , 000 or fractional thereof For each additional RM1, 000 not exceeding RM1, 000, 000 RM 2.50 for every RM1, 000 or fractional thereof For each additional RM1, 000 or part thereof RM 5.00 ".
Chapter V AMENDMENTS to the PETROLEUM (income tax) Act 1967 commencement amendments to the Petroleum (income tax) 1967 47. This chapter takes effect for the year of assessment 2008 and the next year of assessment.
Amendment of section 16 48. Petroleum Act (income tax) in 1967, which is referred to as "the principal Act" in this chapter, is amended in subsection 16 (7e) by deleting the words "Culture, Arts and".
Financial 27 amendment of section 22 49. Section 22 of the principal Act is amended — (a) in the proviso to subsection (1), by substituting for the word "five" with the word "seven"; and (b) by inserting after subsection (1) of the following subsection: "(1B) The chargeable income of a chargeable person for a year of assessment shall consist of the amount of his assessable income for that year reduced by an amount equal to any gift of money or cost of contribution in kind made by the relevant person in the basis period for that year for any sports activity approved by the Minister or to any sports body approved by the Commissioner of Sports laporan jawatankuasa audit under the Sports Development Act 1997:, likely that the amount to be deducted listed to this subsection shall not:-new vehicles the difference between the amount of seven per cent of the statutory income of the relevant person and the total amount that has been deducted listed to the proviso to subsection (1) and subsection (1f).
(1f) The chargeable income of a chargeable person for a year of assessment shall consist of the amount of his assessable income for that year reduced by an amount equal to any gift of money or cost of contribution in kind made by the relevant person in the basis period for that year for any project of national interest approved by the Minister : Likely that the amount to be deducted listed to this subsection shall not:-new vehicles the difference between the amount of seven per cent of the statutory income of the relevant person and the amount that has been deducted listed to the proviso to subsection (1) and subsection (1e). ".
28 laws of Malaysia Act 661 Chapter VI AMENDMENTS to sales tax Act 1972 amendment of section 31c 50. Sales Tax Act 1972 is amended in section 31c — (a) in note shoulder, by inserting after the word "refund" for the word "doubtful debts or";
(b) in paragraph (1) (b), by inserting after the words "that person" the words "has been provided in his account as doubtful debts or"; and (c) by replacing subsection (4) with the following subsection: "(4) for the purposes of this section —" bad debt "means the balance of the amount of the fee in respect of sales of taxable goods including sales tax payable to that person but not yet paid to, and cannot be obtained by the person;
"doubtful debts" means a provision made in respect of the balance of the payment amount in the accounts of such person in accordance with generally accepted accounting principles. ".
Chapter VII AMENDMENTS to the Service Tax Act 1975 amendment of section 21b 51. Service Tax Act 1975 is amended in section 21B — (a) in note shoulder, by inserting after the word "refund" for the word "doubtful debts or";
(b) in paragraph (1) (b), by inserting after the words "that person" the words "has been provided in his account as doubtful debts or"; and financial 29 (c) by replacing subsection (4) with the following subsection: "(4) for the purposes of this section —" bad debt "means the balance of the amount of the fee in respect of the provision of services payable tax includes service tax payable to that person but not yet paid to, and cannot be obtained by the person;
"doubtful debts" means a provision made in respect of the balance of the payment amount in the accounts of such person in accordance with generally accepted accounting principles. ".
30 laws of Malaysia Act 661 laws of MALAYSIA Act 661 Finance Act 2006 LIST AMENDMENT of laws that amend the short title effect from – No – 31 laws of MALAYSIA Act 661 Finance Act 2006 AMENDED SECTION LIST Section Power amend with effect from – THERE are –