INCOME TAX ACT 1967 (ACT 53) PART II - IMPOSITION AND GENERAL CHARACTERISTICS OF THE TAX
Section 14. General provisions as to dividend income.
(1) Subject to this section, where a company resident for the basis year for a year of assessment pays, credits or distributes a dividend in the basis period for that year of assessment, the dividend shall be deemed to be derived from Malaysia.
[Am. Act A1093:s.3]
(2) Where a company resident for the basis year for a year of assessment was not resident for the basis year for the year of assessment immediately preceding that year of assessment, only dividends paid, credited, or distributed by the company on or after the day on which the management and control of any business of the company (or, in the case of a company which does not carry on a business, the management and control of its affairs by its directors or other controlling authority) were first exercised in Malaysia in that first-mentioned basis year shall be deemed to be derived from Malaysia.
(3) Where-
(a) the management and control of the business of a company (or, if it has more than one business, of all its businesses); or
(b) in the case of a company which does not carry on a business, the management and control of its affairs by its directors or other controlling authority,
cease to be exercised in Malaysia in the basis year for a year of assessment and the company is not resident for the basis year for the year of assessment following that first-mentioned year of assessment, dividends paid, credited or distributed in that first-mentioned basis year after the cessation shall not be deemed to be derived from Malaysia.
(4) Where a dividend consists of property other than money, that dividend shall be taken to consist of an amount equal to the market value of the property at the time of the distribution of the dividend.
