Income Tax (Exemption) (No. 7) (Amendment) Order 2009

Income Tax (Exemption) (No. 7) (Amendment) Order 2009

In exercise of the powers conferred by paragraph 127(3)(b) of the Income Tax Act 1967 [Act 53], the Minister makes the following order:

Citation and commencement

1. (1) This order may be cited as the Income Tax (Exemption) (No. 7) (Amendment) Order 2009.

(2) This Order is deemed to have come into operation on 30 August 2008. Amendment of paragraph 2

2. The Income Tax (Exemption) (No. 7) Order 2008 [P.U. (A) 351/2008] is amended by substituting for paragraph 2 the following paragraph:

“2. (1) The Minister exempts—

(a) a non-resident from payment of income tax on interest paid or credited in the basis year for a year of assessment by Bank Kerjasama Rakyat Malaysia Berhad;

(b) an individual resident in Malaysia from payment of income tax on interest received from—

(i) negotiable certificate of deposit; or

(ii) rediscounting of banker’s acceptance on repurchase agreement or any similar instrument of trade financing which is traded in money market fund; or

(c) an individual resident in Malaysia from payment of income tax on gains or profit, interest or bonus received from money deposited with the following institutions:

(i) a bank or finance company licensed or deemed to be licensed under the Banking and Financial Institutions Act 1989 [Act 372];

(ii) a bank licensed under the Islamic Banking Act 1983 [Act 276];

(iii) a development financial institution prescribed under the Development Financial Institutions Act 2002 [Act 618];

(iv) the Lembaga Tabung Haji established under the Tabung Haji Act 1995 [Act 535];

(v) the Malaysian Building Society Berhad incorporated under the Companies Act 1965 [Act 125];

(vi) the Borneo Housing Mortgage Finance Berhad incorporated under the Companies Act 1965; or

(vii) a co-operative society registered under the Co-operative Societies Act 1993 [Act 502].

(2) For the purpose of subsubparagraph (1)(c), the money shall be deposited—

(a) in any savings deposit, current deposit, fixed deposit or investment deposit; or

(b) in any savings deposit, current deposit or investment deposit under the Islamic banking scheme.”.


Made 25 May 2009

[Perb. CR (8.09) 294/6/4-9(SJ. 9) (2009) (SK. 6); LHDN.01/35/(S)/42/51/231-17.10;
PN(PU2)80/LVII]

Dato’ Seri Ahmad Husni Mohamad Hanadzlah
Second Minister of Finance

[To be laid before the Dewan Rakyat pursuant to subsection 127(4) of the Income Tax Act 1967]