INCOME TAX ACT 1967 (ACT 53) PART III - ASCERTAINMENT OF CHARGEABLE INCOME Chapter 8-Special cases
Section 60H. Closed-end fund company.
(1) This section shall apply to a closed-end fund company resident in Malaysia for the basis year for a year of assessment.
(2) Where a closed-end fund company receives an amount in respect of gains from the realization of investments in the basis period for a year of assessment such amount shall be exempt from tax for that year of assessment.
(3) Paragraphs 5 and 6 of Schedule 7A shall apply, mutatis mutandis, to the amount exempted under subsection (2) and paragraph 35 of Schedule 6 (where applicable).
(4) In ascertaining the total income of a closed-end fund company for the basis period for a year of assessment there shall be deducted before any deduction falling to be made under paragraph 44(1)(c) an amount in respect of expenses incurred by that closed-end fund company during that period, which amount shall be determined in accordance with the formula-
A x B
4C
Where
A is the total of the permitted expenses incurred for that basis period;
B is the gross income consisting of dividend and interest chargeable to tax for that basis period; and
C is the aggregate of the gross income consisting of dividend and interest (whether exempt or not) and gains made from the realisation of investments (whether chargeable to tax or not) for that basis period:
Provided that-
(a) the amount of deduction to be made shall not be less than ten per cent of the total permitted expenses incurred for that basis period; and
(b) where, by reason of an absence or insufficiency of aggregate income for that year of assessment, effect cannot be given or cannot be given in full to any deduction falling to be made to the closed-end fund company under this section for that year, that deduction which has not been so made shall not be made to the closed-end fund company for any subsequent year of assessment.
(5) For the purposes of this section-
"closed-end fund company" means a public limited company incorporated in Malaysia and approved by the Securities Commission to engage wholly in the investment of funds in securities;
"permitted expenses" means expenses incurred by a closed-end fund company in respect of-
(a) manager's remuneration;
(b) maintenance of register of shareholders;
(c) share registration expenses;
(d) secretarial, audit and accounting fees, telephone charges, printing and stationery costs and postage;
"securities" means debentures, stocks and shares in a public company or corporation, or bonds of any government or any body corporate or unincorporate and includes any right or option in respect thereof and any interest in unit trust schemes.
(6) Sections 33 and 34 shall not apply to a closed-end fund company.
