LAWS OF MALAYSIA


ACT 53
INCOME TAX ACT 1967 [REPRINT - 2002]
Incorporating latest amendments - Act A1151/2002

First enacted : 1967 (Act No. 47 of 1967)
Date of coming into operation : Throughout Malaysia: 28th September 1967
Revised up to :1971 (Act No. 53 w.e.f. 21st October 1971)


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ARRANGEMENT OF SECTIONS
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Long Title

PART I - PRELIMINARY

Section 1. Short title and commencement.
Section 2. Interpretation.

PART II - IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX

Section 3. Charge of income tax.
Section 3A. (Repealed by Act 451)
Section 3B. Non-chargeability to tax in respect of offshore business activity.
Section 3C. [Repealed by Act 578:s.4]
Section 4. Classes of income on which tax is chargeable.
Section 4A. Special classes of income on which tax is chargeable.
Section 5. Manner in which chargeable income is to be ascertained.
Section 6. Rates of tax.
Section 6A. Tax rebate.
Section 6B. Tax rebate on loan to a small business.
Section 6C. Tax rebate on fees.
Section 7. Residence: individuals.
Section 8. Residence: companies and bodies of persons.
Section 9. (Repealed).
Section 10. (Repealed).
Section 11. Occupation of premises for non-business purposes constitutes source of income.
Section 12. Derivation of business income in certain cases.
Section 13. General provisions as to employment income.
Section 13A.(Inserted by Act 241 and repealed by Act 293)
Section 14. General provisions as to dividend income.
Section 15. Derivation of interest and royalty income in certain cases.
Section 15A. Derivation of special classes of income in certain cases.
Section 16. Voluntary pensions, etc.
Section 17. Derivation of pensions, etc.

PART III - ASCERTAINMENT OF CHARGEABLE INCOME

Chapter 1 - Preliminary

Section 18. Interpretation of Part III.
Section 19. Supplementary provisions for the interpretation of Part III.

Chapter 2-Basis years and basis periods

Section 20. Basis years
Section 21. Basis period of a person other than a company.
Section 21A. Basis period of a company.

Chapter 3- Gross income

Section 22. Gross income generally.
Section 23. Interpretation of sections 24 to 28.
Section 24. Basis period to which gross income from a business is related.
Section 25. Basis period to which gross income from an employment is related.
Section 26. Basis period to which gross income in respect of dividend is related.
Section 27. Basis period to which gross income in respect of interest, etc., is related.
Section 28. Basis period to which gross income not provided for by sections 24 to 27 is related.
Section 29. Basis period to which income obtainable on demand is related.
Section 30. Special provisions applicable to gross income from a business.
Section 31. Special provisions applicable to gross income from occupation of premises for non-business purposes.
Section 32. Special provisions applicable to gross income from an employment.

Chapter 4- Adjusted income and adjusted loss

Section 33. Adjusted income generally.
Section 34. Special provisions applicable to adjusted income from a business.
Section 34A. Special deduction for research expenditure.
Section 34B. Special deduction for contribution to an approved research institute or payment for use of services of an approved research institute or company.
Section 35. Stock in trade.
Section 36. Power to direct special treatment in the computation of business income in certain cases.
Section 37. Special provisions applicable to adjusted income from occupation of premises for non-business purposes.
Section 38. Special provisions applicable to adjusted income from an employment.
Section 38A. Limitation on deduction of entertainment expenses.
Section 39. Deductions not allowed.
Section 40. Adjusted loss.
Section 41. Ascertainment of adjusted income or adjusted loss from a business for an accounting period.

Chapter 5-Statutory income

Section 42. Statutory income.

Chapter 6-Aggregate income and total income

Section 43. Aggregate income.
Section 44. Total income.

Chapter 7-Chargeable income

Section 45. Chargeable income and aggregation of husband's and wife's income.
Section 45A. Deduction for husband.
Section 46. Deduction for individual and Hindu joint family.
Section 47. Deduction for wife or former wife.
Section 48. Deduction for children.
Section 49. Deduction for insurance premiums.
Section 50. Application of section 49 where husband and wife are living together.
Section 51. Deduction must be claimed.

Chapter 8-Special cases

Section 52. Modification of Part III in certain special cases.
Section 53. Trade associations.
Section 54. Sea and air transport undertakings.
Section 54A. Exemption of shipping profits.
Section 54B.[Inserted by Act 264:s.7 and Deleted by Act 293:s.14]
Section 55. Partnerships generally.
Section 56. Successive partnerships.
Section 57. Provisions applicable where partnership is a partner in another partnership.
Section 58. Income receivable by partnership otherwise than from partnership business.
Section 59. Partnership losses.
Section 60. Insurance business.
Section 60A. Inward re-insurance: chargeable income, reduced rate and exempt dividend.
Section 60AA. Application of sections 60 and 60A to a takaful business.
Section 60AB. Chargeable income of life fund subject to tax.
Section 60B. Offshore insurance: chargeable income, reduced rate and exempt dividend.
Section 60C. Banking business.
Section 60D. [Deleted by Act 600:s.8]
Section 60E. Approved operational headquarters company.
Section 60F. Investment holding company.
Section 60G. Foreign fund management company.
Section 60H. Closed-end fund company.
Section 61. Trusts generally.
Section 62. Discretionary trusts.
Section 63. Trust annuities.
Section 63A. Special deduction for qualifying capital expenditure.
Section 63B. Special deduction for expenses.
Section 64. Estates under administration.
Section 65. Settlements.
Section 65A. Co-operative Societies.

PART IV - PERSONS CHARGEABLE

Section 66. Personal chargeability: general principle.
Section 67. Vicarious responsibility and chargeability.
Section 68. Power to appoint agent.
Section 69. Incapacitated persons.
Section 70. Non-residents.
Section 71. Masters of ships and captains of aircraft.
Section 72. Hindu joint families.
Section 73. Trustees.
Section 74. Executors.
Section 75. Companies and bodies of persons.
Section 76. Rulers and Ruling Chiefs.

PART V - RETURNS

Section 77. Return of income and notice of chargeability.
Section 78. Power to call for specific returns and production of books.
Section 79. Power to call for statement of bank accounts, etc.
Section 80. Power of access to buildings and documents, etc.
Section 81. Power to call for information.
Section 82. Duty to keep records and give receipts.
Section 83. Return by employer.
Section 84. Return concerning persons other than the maker of the return.
Section 85. Return by occupiers.
Section 86. Return by partnership.
Section 87. Power to call for further return.
Section 88. Returns deemed to be made with due authority.
Section 89. Change of address.

PART VI - ASSESSMENTS AND APPEALS

Chapter I - Assessments

Section 90. Assessments generally.
Section 91. Assessments and additional assessments in certain cases.
Section 92. Advance assessments.
Section 93. Form and making of assessments.
Section 94. Record of assessments.
Section 95. Waiver of assessment in certain cases and discharge of double assessments.
Section 96. Notice of assessment.
Section 96A. Composite assessment.
Section 97. Finality of assessment.

Chapter 2 - Appeals

Section 98. The Special Commissioners and the Clerk.
Section 99. Right of appeal.
Section 100. Extension of time for appeal.
Section 101. Review by Director General.
Section 102. Disposal of appeals.

PART VII - COLLECTION AND RECOVERY OF TAX

Section 103. Payment of tax.
Section 103A. Payment of tax by companies
Section 104. Recovery from persons leaving Malaysia.
Section 105. Refusal of customs clearance in certain cases.
Section 106. Recovery by suit.
Section 107. Deduction of tax from emoluments and pensions.
Section 107A. Deduction of tax from contract payment.
Section 107B. Payment by instalments.
Section 107C. Estimate of tax payable and payment by instalments for companies.
Section 108. Deduction of tax from dividends.
Section 109. Deduction of tax from interest or royalty in certain cases.
Section 109A. Application of sections 109 and 110 to income derived by a public entertainer.
Section 109B. Deduction of tax from special classes of income in certain cases derived from Malaysia.
Section 109C. Deduction of tax from interest paid to a resident.
Section 110. Set off for tax deducted.
Section 110A. Non-entitlement of an offshore company for set-off.
Section 111. Refund of over-payment.
Section 111A. Non-entitlement of an offshore company to refund.

PART VIII - OFFENCES AND PENALTIES

Section 112. Failure to furnish return or give notice of chargeability.
Section 113. Incorrect returns.
Section 114. Wilful evasion.
Section 115. Leaving Malaysia without payment of tax.
Section 116. Obstruction of officers.
Section 117. Breach of confidence.
Section 118. Offences by officials.
Section 119. Unauthorized collection.
Section 119A. Failure to keep records.
Section 120. Other offences.
Section 121. Additional provisions as to offences under ss. 113, 115, 116, 118 and 120.
Section 122. Tax, etc., payable notwithstanding institution of proceedings.
Section 123. [Deleted by Act A1028: s.4]
Section 124. Power to compound offences and abate or remit penalties.
Section 125. Recovery of penalties imposed under Part VIII.
Section 126. Jurisdiction of subordinate court.

PART IX - EXEMPTIONS, REMISSION AND OTHER RELIEF

Section 127. Exemptions from tax: general.
Section 127A. Cessation of exemption
Section 128. Exemption from tax: residential premises and premises where, owing to circumstances, owner is compelled to vacate.
Section 129. Remission of tax.
Section 129A. Other relief.
Section 130. Non resident citizen relief
Section 131. Relief in respect of error or mistake.
Section 132. Double taxation arrangements.
Section 133. Unilateral relief from double taxation.

PART IXA - SPECIAL INCENTIVE RELIEF

Section 133A. Special incentive relief.

PART X - SUPPLEMENTAL

Chapter 1- Administration

Section 134. The Director General and his staff.
Section 135. Power of Minister to give directors to Director General.
Section 136. Delegation of Director General's functions.
Section 137. Identification of officials.
Section 138. Certain material to be treated as confidential.

Chapter 2- Controlled companies and powers to protect the revenue in case of certain transactions

Section 139. Controlled companies.
Section 140. Power to disregard certain transactions.
Section 141. Powers regarding certain transactions by non-residents.

Chapter 3- Miscellaneous

Section 142. Evidential provisions.
Section 143. Errors and defects in assessments, notices and other documents.
Section 144. Power to direct where returns, etc., are to be sent.
Section 145. Service of notice.
Section 146. Authentication of notices and other documents.
Section 147. Free postage.
Section 148. Provisions as to approvals and directions given by Minister or Director General.
Section 149. Annulment of rules and orders laid before the Dewan Rakyat.
Section 150. Power to approve pension or provident fund, scheme or society.
Section 151. Procedure for making refunds and repayments.
Section 152. Forms.
Section 152A. Electronic medium
Section 153. Restriction on persons holding themselves out as tax agents, tax consultants, etc.
Section 154. Power to make rules.
Section 154A. Power to enter into an agreement with regard to tax liability.
Section 155. Repeals.
Section 156. Transitional and saving provisions.

SCHEDULE 1 - Rates Of Tax.
SCHEDULE 2 - Deduction For Capital Expenditure On Mines.
SCHEDULE 3 - Capital Allowances And Charges.
SCHEDULE 4 - Expenditure On Prospecting Operations. [Am. Act 309: s.18]
SCHEDULE 4A - Capital, Expenditure, On Approved Agricultural, Projects
SCHEDULE 4B - Qualifying Pre-Operational Business Expenditure
SCHEDULE 4C - Deduction For Approved Food Production Projects
SCHEDULE 5 - Appeals
SCHEDULE 6 - Exemptions From Tax
SCHEDULE 7 - Double Taxation Relief
SCHEDULE 7A - Reinvestment Allowance
SCHEDULE 7B - Reinvestment Allowance For Service Sector.
SCHEDULE 8 - Repeals
SCHEDULE 9 - Transitional And Saving Provisions

LIST OF AMENDMENTS

RULES & REGULATIONS


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