LAWS OF MALAYSIA - AGC

1 laws OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 53 INCOME TAX ACT 1967 As at 1 October 2017 2 INCOME TAX ACT 1967 First enacted .. 1967 (Act No. 47 of 1967) Revised .. 1971 (Act 53 21 October 1971) Latest amendment made by Act 785 which came into operation on .. See section 3 of Act 785 PREVIOUS REPRINTS First Reprint .. 1980 Second Reprint .. 1993 Third Reprint .. 2002 Fourth Reprint .. 2006 3 laws OF MALAYSIA Act 53 INCOME TAX ACT 1967 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title and commencement 2. Interpretation PART II IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX 3. Charge of income tax 3A. (Deleted) 3B. Non-chargeability to tax in respect of offshore business activity 3C.

2 (Deleted) 4. Classes of income on which tax is chargeable 4A. Special classes of income on which tax is chargeable 4B. Non-business income 4C. Gains or profits from a business arising from stock in trade parted with by any element of compulsion 5. Manner in which chargeable income is to be ascertained 6. Rates of tax 6A. Tax rebate 6B. (Deleted) 6C. (Deleted) 4 laws of MALAYSIA ACT 53 Section 7. Residence: individuals 8. Residence: companies and bodies of persons 9. (Deleted) 10. (Deleted) 11. (Deleted) 12. Derivation of business income in certain cases 13. General provisions as to employment income 13A. (Deleted) 14. General provisions as to dividend income 15. Derivation of interest and royalty income in certain cases 15A.

3 Derivation of special classes of income in certain cases 15B. Derivation of gains or profits in certain cases 16. Voluntary pensions, etc. 17. Derivation of pensions, etc. PART III ASCERTAINMENT OF CHARGEABLE INCOME Chapter 1 Preliminary 18. Interpretation of Part III 19. Supplementary provisions for the interpretation of Part III Chapter 2 Basis years and basis periods 20. Basis years 21. Basis period of a person other than a company, limited liability partnership, trust body or co-operative society 21A. Basis period of a company, limited liability partnership, trust body or co-operative society Chapter 3 Gross income 22. Gross income generally Income Tax 5 Section 23. Interpretation of sections 24 to 28 24.

4 Basis period to which gross income from a business is related 25. Basis period to which gross income from an employment is related 26. Basis period to which gross income in respect of dividend is related 27. Basis period to which gross income in respect of interest, etc., is related 28. Basis period to which gross income not provided for by sections 24 to 27 is related 29. Basis period to which income obtainable on demand is related 30. Special provisions applicable to gross income from a business 31. (Deleted) 32. Special provisions applicable to gross income from an employment Chapter 4 Adjusted income and adjusted loss 33. Adjusted income generally 34. Special provisions applicable to adjusted income from a business 34A. Special deduction for research expenditure 34B.

5 Special deduction for contribution to an approved research institute or payment for use of services of an approved research institute or company 34C. Special provision applicable to adjusted income from a discount or premium 34D. Special deduction for expenditure on treasury shares 35. Stock in trade 36. Power to direct special treatment in the computation of business income in certain cases 37. (Deleted) 38. Special provisions applicable to adjusted income from an employment 38A. Limitation on deduction of entertainment expenses 39. Deductions not allowed 40. Adjusted loss 41. Ascertainment of adjusted income or adjusted loss from a business for an accounting period 6 laws of MALAYSIA ACT 53 Chapter 5 Statutory income Section 42.

6 Statutory income Chapter 6 Aggregate income and total income 43. Aggregate income 44. Total income 44A. Group relief for companies 44B. Carry-back losses Chapter 7 Chargeable income 45. Chargeable income and aggregation of husband s and wife s income 45A. Deduction for husband 46. Deduction for individual and Hindu joint family 46A. (Deleted) 46B. Deduction for individual on interest expended 47. Deduction for wife or former wife 48. Deduction for children 49. Deduction for insurance premiums 50. Application of section 49 where husband and wife are living together 51. Deduction must be claimed Chapter 8 Special cases 52. Modification of Part III in certain special cases 53. Trade associations 53A. Club, association or similar institution 54. Sea and air transport undertakings 54A.

7 Exemption of shipping profits 54B. (Deleted) 55. Partnerships generally Income Tax 7 Section 56. Successive partnerships 57. Provisions applicable where partnership is a partner in another partnership 58. Income receivable by partnership otherwise than from partnership business 59. Partnership losses 60. Insurance business 60A. Inward re-insurance: chargeable income, reduced rate and exempt dividend 60AA. Takaful business 60AB. Chargeable income of life fund subject to tax 60B. Offshore insurance: chargeable income, reduced rate and exempt dividend 60C. Banking business 60D. (Deleted) 60E. (Deleted) 60F. Investment holding company 60FA. Investment holding company listed on Bursa MALAYSIA 60G. Foreign fund management company 60H.

8 Closed-end fund company 60I. Company that establishes special purpose vehicle 61. Trusts generally 61A. Exemption of Real Estate Investment Trust of Property Trust Fund 62. Discretionary trusts 63. Trust annuities 63A. Special deduction for qualifying capital expenditure 63B. Special deduction for expenses 63C. Special treatment on rent from the letting of real property of a Real Estate Investment Trust or Property Trust Fund 63D. Income of a unit trust from the letting of real property is not income from a business 64. Estates under administration 65. Settlements 65A. Co-operative Societies 8 laws of MALAYSIA ACT 53 PART IV PERSONS CHARGEABLE Section 66. Personal chargeability: general principle 67.

9 Vicarious responsibility and chargeability 68. Power to appoint agent 69. Incapacitated persons 70. Non-residents 71. Masters of ships and captains of aircraft 72. Hindu joint families 73. Trustees 74. Executors 75. Companies and bodies of persons 75A. Director s liability 75B. Limited liability partnership and business trust 76. Rulers and Ruling Chiefs PART V RETURNS 77. Return of income by a person other than a company, limited liability partnership, trust body or co-operative society 77A. Return of income by every company, limited liability partnership, trust body or co-operative society 77B. Amendment of return 77C. Deduction of tax as final tax 78. Power to call for specific returns and production of books 79. Power to call for statement of bank accounts, etc.

10 80. Power of access to buildings and documents, etc. 81. Power to call for information 82. Duty to keep records and give receipts 82A. Duty to keep documents for ascertaining chargeable income and tax payable Income Tax 9 Section 83. Return by employer 83A. Duty to furnish particulars of payment made to an agent, etc. 84. Return concerning persons other than the maker of the return 85. Return by occupiers 86. Return by partnership 87. Power to call for further return 88. Returns deemed to be made with due authority 89. Change of address PART VI ASSESSMENTS AND APPEALS Chapter 1 Assessments 90. Assessments generally 91. Assessments and additional assessments in certain cases 91A. Deemed assessment on the amended return 92.