INCOME TAX ACT 1967 (ACT 53) PART III - ASCERTAINMENT OF CHARGEABLE INCOME Chapter 8-Special cases
Section 65A. Co-operative Societies.
In arriving at the chargeable income of a co-operative society for a year of assessment, there shall be deducted from the total income for that year:
(a) such sum as has been transferred or paid during the basis period for that year to a statutory reserve fund or to any educational institution or co-operative organisation established for the furtherance of co-operative principles, or to both, or to a Co-operative Education Trust Fund, as may be required under the provisions of any written law relating to the registration of co-operative societies in Malaysia:
Provided that the maximum sum to be deducted shall not exceed one-fourth of the audited net profits for that basis period of such co-operative society; and
(b) an amount equal to eight per cent (or such percentage as may be prescribed) of the members' funds (as defined in subparagraph 12 (2) or Part I of Schedule 6) as at the first day of the basis period for the year of assessment.
