Cetak Simpan Rencana 39. Deductions not allowed.

1 Cetak Simpan Rencana Tajuk : 39. Deductions not allowed . Tarikh Kuatkuasa : Tarikh Tamat Kuatkuasa : Kategori : Rujukan Perundangan\Akta Cukai Pendapatan 1967 - Seksyen\PART III - ASCERTAINMENT OF CHARGEABLE INCOME\Chapter 4 - Adjusted income and adjusted loss\ RencanaAkta Cukai Pendapatan 1967 Pindaan Sehingga Akta 742 Tahun 2012 (Akta 53)Tarikh Keluaran:Title:Income Tax ActPart:PART III - ASCERTAINMENT OF CHARGEABLE INCOMEC hapter:Chapter 4 - Adjusted income and adjusted lossSection:39. Deductions not allowed . 39. (1) Subject to any express provision of this Act, inascertaining the adjusted income of any person from anysource for the basis period for a year of assessment nodeduction from the gross income from that source for thatperiod shall be allowed in respect of- (a) domestic or private expenses; (b) any disbursements or expenses not being money wholly and exclusively laid out or expended for thepurpose of producing the gross income; (c) any capital withdrawn or any sum employedorintended to be employed as capital.

2 (d) any amount in respect of any payment toanypension, provident, savings, widows, widowersand orphans or other similar fund or society which isnot an approved scheme; History Paragraph 39(1)(d) is amended by Act 719 of 2011section 9, by inserting after the word widows theword , widowers , has effect for the year assessment2011 and subsequent years of assessment. Deductions not allowed . [ 241; Act 293; Act 309; Act A643; Act 364; Act 421 Act 644.)Page 1 of 9 Rencana7/5/2012 1 of 9 (e) any expenditure incurred in relation to a business,being expenditure which is- (i) qualifying mining expenditure for thepurposes of Schedule 2; (ii) qualifying expenditure, qualifying agricultureexpenditure or qualifying forest expenditureforthe purposes of Schedule 3; History Paragraph 39(1)(e) is amended by s7(a), Act 644 of 2005by inserting the word "or" at the end of subparagraph (ii)and shall have effect for the year of assessment 2006 andsubsequent years of assessment.]

3 (iii) qualifying prospecting expenditure for thepurposes of Schedule 4 and which but for thisparagraph would be deductible in ascertainingthe adjusted income from the business. (iv) (Repealed by Act 644 - year 2005) History Paragraph 39(1)(e) amended by Act 644 of 2005 bydeleting subparagraph (iv) and shall have effect for the yearof assessment 2006 and subsequent years of assessment. Paragraph 39(1)(h) formerly reads: "(iv). qualifying farm expenditure for the purposes ofSchedule 4A". (f) interest or royalty derived from Malaysia fromwhich tax is deductible under section 109, if tax hasnot been deducted therefrom and paid to theDirectorGeneral in accordance with subsection (1) ofthat section: Provided that (i) this paragraph shall not apply if the payerhas paid the amount referred to in subsection (2) ofthat section.

4 And (ii) where such tax is deducted or such amountis paid after the due date for the furnishing of a returnPage 2 of 9 Rencana7/5/2012 2 of 9for a year of assessment that relates to suchpayment, the tax or amount so paid shall notprejudice the imposition of penalty under subsection113(2) if a deduction on such payment is made insuch return or is claimed in the information given tothe Director General in arriving at the adjustedincome of the payer; History Proviso to Paragraph 39(1)(f) is amended by Act 719 of2011 Section 9, has effect effect from 1 January 2011 forthe year of assessment 2011 and subsequent years ofassessment.

5 The proviso previously read: "Provided that this paragraph shall not apply if thepayer has paid the amount referred to in subsection (2) ofthat section.". Paragraph 39(1)(f) amended by Act 557 of 1997 s9( a ), bysubstituting for the semicolon at the end of the paragraph acolon and inserting thereafter the following proviso: " Provided that this paragraph shall not apply if the payerhas paid the amount referred to in subsection (2) of thatsection.",shall have effect for year of assessment 1997 andsubsequent years of assessment. (g) any sum, by whatever name called, payable(otherwise than to a State Government or withtheapproval of the Minister, a statutory authority, orother body the capital or fund of which is wholly orsubstantially owned by a State Government or astatutory authority) for the use of a licence or permitto extract timber from a forest in Malaysia; (h) deleted History Paragraph 391)(h) is deleted by Act 619 of 2002 s5, with effect from year of assessment 2002.

6 Paragraph 39(1)(h)formerly reads: " (h) any sum paid by way of a bonus to an employee inexcess of two twelfth of his wages of salary;". Paragraph 39(1)(h) inserted by Act 578 of 1998 s10, deemed to have come into force on 17 October 1997. (i) any contract payment from which tax isPage 3 of 9 Rencana7/5/2012 3 of 9deductible under section 107A, if tax has not beendeducted therefrom and paid to the Director Generalin accordance with subsection(1) of that section: Provided that (i) this paragraph shall not apply if the payerhas paid the amount referred to in subsection (2) ofthat section; and (ii) where such tax is deducted or suchamount is paid after the due date for the furnishing ofa return for a year of assessment that relates to suchpayment, the tax or amount so paid shall notprejudice the imposition of penalty under subsection113(2) if a deduction on such payment is made insuch return or is claimed in the information given tothe Director General in arriving at the adjustedincome of the payer; History Proviso to Paragraph 39(1)(i) is amended by Act 719 of2011 Section 9, has effect effect from 1 January 2011 for the year of assessment 2011 and subsequent years ofassessment.

7 The proviso previously read: "Provided that this paragraph shall not apply if thepayer has paid the amount referred to in subsection (2) ofthat section.". Paragraph 39(1)(i) amended by Act 557 of 1997 s9( b ), by substituting for the semicolon at the end of the paragraph acolon and inserting thereafter the following proviso: " Provided that this paragraph shall not apply if the payerhas paid the amount referred to in subsection (2) of that section.",shall have effect for year of assessment 1997 andsubsequent years of assessment. (j) any payments from which tax is deductible undersection 109B, if tax has not been deducted therefromand paid to the Director General in accordance withsubsection (1) of that section: Provided that (i) this paragraph shall not apply if the payerhas paid the amount referred to in subsection (2) ofthat section.

8 And Page 4 of 9 Rencana7/5/2012 4 of 9 (ii) where such tax is deducted or suchamount is paid after the due date for the furnishing ofa return for a year of assessment that relates to suchpayment, the tax or amount so paid shall notprejudice the imposition of penalty under subsection113(2) if a deduction on such payment is made insuch return or is claimed in the information given tothe Director General in arriving at the adjustedincome of the payer; History Proviso to Paragraph 39(1)(j) is amended by Act 719 of2011 Section 9, has effect effect from 1 January 2011 for the year of assessment 2011 and subsequent years ofassessment.

9 The proviso previously read: "Provided that this paragraph shall not apply if thepayer has paid the amount referred to in subsection (2) ofthat section.". Paragraph 39(1)(j) is amended by Act 693 of 2009 s15 byinserting after the words "section 109B" the words "or109F", come into force on 1 January 2009. Paragraph 39(1)(j) amended by Act 557 of 1997 s9( c ), bysubstituting for the semicolon at the end of the paragraph acolon and inserting thereafter the following proviso: " Provided that this paragraph shall not apply if the payerhas paid the amount referred to in subsection (2) of that section." ,shall have effect for year of assessment 1997 andsubsequent years of assessment.

10 (k) any sum paid by way of rentals in respect of amotor vehicle, other than a motor vehicle licensed bythe appropriate authorityfor commercialtransportation of goods or passengers, in excess offifty thousand rinngit: Provided that if the motor vehicle has not beenused by any person for any purpose prior to the rentaland the total cost of the motor vehicle does notexceed one hundred and fifty thousand ringgit, anysum paid by way of rental in excess of one hundredthousand ringgit: Provided further that the maximum amount ofdeduction in respect of the rentals of such motorPage 5 of 9 Rencana7/5/2012 5 of 9vehicle in the year of assessment and subsequentyears of assessment shall not in the aggregateexceed fifty thousand ringgit or one hundred thousandringgit, as the case may be, in respect of that motorvehicle; History Paragraph 39(1)(k) amended by Act 619 of 2002 s6(b), bysubstituting for paragraph 39(1)(k), shall have effect for theyear of assessment 2002 and subsequent years ofassessment.