Income Tax (Exemption) (No. 2) 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. 2) Order 2009.
(2) This Order is deemed to have come into operation on 2 September 2006.
Interpretation
2. In this Order, unless the context otherwise requires—
“approved business” means the new business and expansion project as defined in the Income Tax (Exemption) (No. 17) Order 2007 [P.U. (A) 371/2007] and the Income Tax (Exemption) (No. 18) Order 2007 [P.U. (A) 372/2007];
“approved company” means a Bio Nexus status company that has been given an exemption from the payment of income tax under the Income Tax (Exemption) (No. 17) Order 2007 [P.U. (A) 371/2007] or Income Tax (Exemption) (No. 18) Order 2007 [P.U. (A) 372/2007], as the case may be;
“the exemption year of assessment” means the year of assessment where an approved company has been given exemption from the payment of income tax under the Income Tax (Exemption) (No. 17) Order 2007 or the Income Tax (Exemption) (No. 18) Order 2007, as the case may be.
Exemption
3. (1) The Minister exempts an approved company in the basis period for a year of assessment from the payment of income tax in respect of statutory income derived from an approved business for a period of ten consecutive years of assessment commencing after the exempt year of assessment, relating to the approved company.
(2) Subject to paragraph 4, the statutory income referred to in subparagraph (1) shall be determined in accordance with the following formula:
A x C
B
Where A is the amount of tax charged on the chargeable incomeof the approved company in respect of its approved business at the prevailing tax rate reduced by the amount of tax charged on such chargeable income at the rate of twenty per cent;
B is the amount of tax charged on such chargeable income at the prevailing tax rate; and
C is the amount of such chargeable income.
(3) Nothing in subparagraph (1) shall absolve or is deemed to have absolvedthe approved company from complying with any requirement to submit any return or statement of accounts or to furnish any other information under the provision of the Act.
Statutory income
4. (1) The statutory income referred to in subparagraph 3(1) shall be determined after deducting allowances which fall to be made under Schedule 3 of the Act notwithstanding that no claim for such allowances has been made.
(2) Where an asset used for the purpose of the approved business is also used for the purpose of a business other than that approved business, then the allowances which fall to be made under Schedule 3 of the Act shall be deducted as is reasonable having regard to the extent to which the asset is used for the purpose of that approved business.
Chargeable income
5. (1) The chargeable income in relation to the source consisting of an approved business for a year of assessment shall be the statutory income from that source reduced by any deduction falling to be made pursuant to subsection 43(2) of the Act relating to that source.
(2) The chargeable income in relation to the source or sources other than the source consisting of an approved business for a year of assessment shall be the statutory income from that source or the aggregate of the statutory income from each of those sources, as the case may be, reduced by any deduction falling to be made pursuant to subsections 43(2) and 44(1) of the Act.
(3) For the purposes of subparagraph (2), in making the deductions under subsections 43(2) and 44(1) of the Act, no regard shall be made to the adjusted loss, if any, from the source consisting of the approved business.
Separate source and account
6. (1) Where an approved company carries on an approved business, the income derived from that approved business shall be treated as a separate and distinct business source of the approved company.
(2) The approved company which is exempted under subparagraph 3(1) shall maintain a separate account for the income derived from the approved business.
Made 9 April 2009
[Perb. 0.3865/366 Vol. 3 (SK. 5); LHDN 01/35/(S)/42/51/82-64; PN(PU2)80/LVI]
Tan Sri Nor Md bin Yakcop
Second Minister of Finance
[To be laid before the Dewan Rakyat pursuant to subsection 127(4) of the Income Tax Act 1967]
Income Tax (Exemption) (Amendment) Order 2009
Income Tax (Exemption) (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) (Amendment) Order 2009.
(2) This Order is deemed to have effect from the year of assessment2008.
Amendment of paragraph 3
2. The Income Tax (Exemption) (No. 11) Order 2005 [P.U. (A) 75/2005], which is referred to as the “principal Order” in this Order, is amended in paragraph 3 by substituting for subparagraph (1) the following subparagraph:
“3. (1) The Minister exempts a venture capital company from the payment of income tax in respect of the statutory income on all sources of income, other than interest income arising from savings or fixed deposits and profits from syariah-based deposits, commencing from the year of assessment in the basis period the venture capital company commences business or the year of assessment of the coming into effect of this Order, whichever is the later, upon satisfying the conditions as specified in paragraph 4, for an exempt period of—
(a) where the qualification under subparagraph 4(a) is fulfilled, ten years of assessment or the years of assessment equivalent to the life of the fund established for the purpose of investing in a venture company, whichever is the lesser; or
(b) where the qualification under subparagraph 4(aa) is fulfilled, five years of assessment or the years of assessment equivalent to the life of the fund established for the purpose of investing in a venture company, whichever is the lesser.”.
Amendment of paragraph 4
3. Paragraph 4 of the principal Order is amended—
(a) by substituting for subparagraph (a) the following subparagraph:
“(a) relating to an exempt period of ten years of assessment under subsubparagraph 3(1)(a), it has invested at least seventy percent of its invested funds in venture companies at the point of the first investment, or where the investment is in the form of seed capital at least fifty percent of its invested funds at the point of the first investment;”; and
(b) by inserting after subparagraph (a) the following subparagraph:
“(aa) relating to an exempt period of five years under subsubparagraph 3(1)(b)—
(i) it has invested at least thirty percent of its invested funds in the form of seed capital, start-up financing, early stage financing or its combination in venture companies at the point of the first investment; and
(ii) it has made an application for the exemption to the Securities Commission between 30 August 2008 and 31 December 2013;”.
Savings provisions
4. (1) Where a venture capital company has been granted an exemption under the provisions of the principal Order prior to its amendment in this Order—
(a) such exemption shall continue to remain in full force and effect;
(b) such exemption shall be subject to the provisions of the principal Order prior to its amendment in this Order; and
(c) the provisions of the principal Order as amended in this Order shall not apply to such exemption.
(2) For the purposes of subparagraph (1), it shall be treated as if this Order has not been made and the provisions of the principal Order prior to its amendment in this Order shall remain in full force and effect.
Made 9 April 2009
[Perb.CR(8.09)294/6/4/-9(SJ. 9)(2009)Jld. 2(SK. 1)(6); LHDN. 01/35/(S)/42/51/231-17.10; PN(PU2)80/XLVI]
Tan Sri Nor Md bin Yakcop
Second Minister of Finance
[To be laid before the Dewan Rakyat pursuant to subsection 127(4) of the Income Tax Act 1967]
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) (Amendment) Order 2009.
(2) This Order is deemed to have effect from the year of assessment2008.
Amendment of paragraph 3
2. The Income Tax (Exemption) (No. 11) Order 2005 [P.U. (A) 75/2005], which is referred to as the “principal Order” in this Order, is amended in paragraph 3 by substituting for subparagraph (1) the following subparagraph:
“3. (1) The Minister exempts a venture capital company from the payment of income tax in respect of the statutory income on all sources of income, other than interest income arising from savings or fixed deposits and profits from syariah-based deposits, commencing from the year of assessment in the basis period the venture capital company commences business or the year of assessment of the coming into effect of this Order, whichever is the later, upon satisfying the conditions as specified in paragraph 4, for an exempt period of—
(a) where the qualification under subparagraph 4(a) is fulfilled, ten years of assessment or the years of assessment equivalent to the life of the fund established for the purpose of investing in a venture company, whichever is the lesser; or
(b) where the qualification under subparagraph 4(aa) is fulfilled, five years of assessment or the years of assessment equivalent to the life of the fund established for the purpose of investing in a venture company, whichever is the lesser.”.
Amendment of paragraph 4
3. Paragraph 4 of the principal Order is amended—
(a) by substituting for subparagraph (a) the following subparagraph:
“(a) relating to an exempt period of ten years of assessment under subsubparagraph 3(1)(a), it has invested at least seventy percent of its invested funds in venture companies at the point of the first investment, or where the investment is in the form of seed capital at least fifty percent of its invested funds at the point of the first investment;”; and
(b) by inserting after subparagraph (a) the following subparagraph:
“(aa) relating to an exempt period of five years under subsubparagraph 3(1)(b)—
(i) it has invested at least thirty percent of its invested funds in the form of seed capital, start-up financing, early stage financing or its combination in venture companies at the point of the first investment; and
(ii) it has made an application for the exemption to the Securities Commission between 30 August 2008 and 31 December 2013;”.
Savings provisions
4. (1) Where a venture capital company has been granted an exemption under the provisions of the principal Order prior to its amendment in this Order—
(a) such exemption shall continue to remain in full force and effect;
(b) such exemption shall be subject to the provisions of the principal Order prior to its amendment in this Order; and
(c) the provisions of the principal Order as amended in this Order shall not apply to such exemption.
(2) For the purposes of subparagraph (1), it shall be treated as if this Order has not been made and the provisions of the principal Order prior to its amendment in this Order shall remain in full force and effect.
Made 9 April 2009
[Perb.CR(8.09)294/6/4/-9(SJ. 9)(2009)Jld. 2(SK. 1)(6); LHDN. 01/35/(S)/42/51/231-17.10; PN(PU2)80/XLVI]
Tan Sri Nor Md bin Yakcop
Second Minister of Finance
[To be laid before the Dewan Rakyat pursuant to subsection 127(4) of the Income Tax Act 1967]
Income Tax (Exemption) Order 2009
Income Tax (Exemption) 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) Order 2009.
(2) This Order shall have effect from the year of assessment 2008 and subsequent years of assessment except for subsubparagraph 2(3)(a).
(3) Subsubparagraph 2(3)(a) shall have effect from the year of assessment 2008 until the year of assessment 2010.
Exemption
2. (1) The Minister exempts an employee from the payment of income tax in relation to the benefit or gift specified in the Schedule which is received by such employee from his employer in ascertaining gross income from his employment in the basis period for a year of assessment.
(2) The benefit and gift referred to in subparagraph (1) shall be such benefit and gift that are generally provided to all employees.
(3) The exemption granted to an employee under subparagraph (1) for the following benefit shall be subject to the limits as specified:
(a) the travelling allowance, petrol card, petrol allowance or any of its combination, for travelling to and from home to the place of work shall not exceed RM2,400.00 per year;
(b) the travelling allowance, petrol card, petrol allowance or toll payment or any of its combination, for travelling in the performance of employment at a place other than his place of work, shall not exceed RM6,000.00 per year;
(c) the child care allowance shall not exceed RM2,400.00 per year;
(d) the discounted price for consumable business products of the employer shall not exceed RM1,000.00 per year; and
(e) the amount of subsidy on interest of housing, education or car loan shall be determined in accordance with the following formula:
A X B
C
A difference between the amount of interest to be borne by the employee and the amount of interest payable by the employee in a basis period for a year of assessment;
B the total aggregate of balance of the principal amount of the housing, education or car loan taken by the employee in a basis period for a year of assessment or RM300,000.00, whichever is the lower; and
C the total aggregate of the principal amount of the housing, education or car loan taken by the employee.
(4) Nothing in subparagraph (1) shall absolve or be deemed to have absolved the employee from complying with any requirement to submit any return or statement or statement of accounts or to furnish any other information under the provisions of the Act.
Non-application
3. This Order shall not apply to an employee where the employee has control over his employer in the following manner:
(a) where his employer is a company, the employee has the power to secure that the affairs of the company or any other company that has control over his employer are conducted in accordance with the wish of the employee in the following manner:
(i) by means of the holding of shares in the company or such other company;.
(ii) the possession of voting power in relation to the company or such other company; or
(iii) by means of any power conferred by the articles of association or other document regulating the company or such other company;
(b) where the employee is the employer’s partner in a partnership; or
(c) where the employee is a sole proprietor, the employee and employer is the same person.
SCHEDULE
Benefit
Travelling allowance, petrol card and petrol allowance
Toll payment
Parking rate and parking allowance
Meal allowance
Child care allowance
Payment for traditional medicine and maternity expenses
Discounted price for consumable business products of the employer
Discounted price for services provided by the business of the employer and for the benefit of the employee, spouse and child of the employee
Monthly bill for subscription of broadband, fixed line telephone, mobile phone and pager registered under the name of employee or employer
Subsidy of interest of housing, education and car loan
Gift
Pager
Personal digital assistant
Telephone
Mobile phone
Made 6 April 2009
[Perb. CR(8.09)294/6/4-9 (Sj. 9)(2009)(Sk. 7); LHDN 01/35/(S)/42/51/231-17.10; PN(PU2)80/LVI]
Tan Sri Nor Md bin Yakcop
Second Minister of Finance
[To be laid before the Dewan Rakyat pursuant to subsection 127(4) of the Income Tax Act 1967]
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) Order 2009.
(2) This Order shall have effect from the year of assessment 2008 and subsequent years of assessment except for subsubparagraph 2(3)(a).
(3) Subsubparagraph 2(3)(a) shall have effect from the year of assessment 2008 until the year of assessment 2010.
Exemption
2. (1) The Minister exempts an employee from the payment of income tax in relation to the benefit or gift specified in the Schedule which is received by such employee from his employer in ascertaining gross income from his employment in the basis period for a year of assessment.
(2) The benefit and gift referred to in subparagraph (1) shall be such benefit and gift that are generally provided to all employees.
(3) The exemption granted to an employee under subparagraph (1) for the following benefit shall be subject to the limits as specified:
(a) the travelling allowance, petrol card, petrol allowance or any of its combination, for travelling to and from home to the place of work shall not exceed RM2,400.00 per year;
(b) the travelling allowance, petrol card, petrol allowance or toll payment or any of its combination, for travelling in the performance of employment at a place other than his place of work, shall not exceed RM6,000.00 per year;
(c) the child care allowance shall not exceed RM2,400.00 per year;
(d) the discounted price for consumable business products of the employer shall not exceed RM1,000.00 per year; and
(e) the amount of subsidy on interest of housing, education or car loan shall be determined in accordance with the following formula:
A X B
C
A difference between the amount of interest to be borne by the employee and the amount of interest payable by the employee in a basis period for a year of assessment;
B the total aggregate of balance of the principal amount of the housing, education or car loan taken by the employee in a basis period for a year of assessment or RM300,000.00, whichever is the lower; and
C the total aggregate of the principal amount of the housing, education or car loan taken by the employee.
(4) Nothing in subparagraph (1) shall absolve or be deemed to have absolved the employee from complying with any requirement to submit any return or statement or statement of accounts or to furnish any other information under the provisions of the Act.
Non-application
3. This Order shall not apply to an employee where the employee has control over his employer in the following manner:
(a) where his employer is a company, the employee has the power to secure that the affairs of the company or any other company that has control over his employer are conducted in accordance with the wish of the employee in the following manner:
(i) by means of the holding of shares in the company or such other company;.
(ii) the possession of voting power in relation to the company or such other company; or
(iii) by means of any power conferred by the articles of association or other document regulating the company or such other company;
(b) where the employee is the employer’s partner in a partnership; or
(c) where the employee is a sole proprietor, the employee and employer is the same person.
SCHEDULE
Benefit
Travelling allowance, petrol card and petrol allowance
Toll payment
Parking rate and parking allowance
Meal allowance
Child care allowance
Payment for traditional medicine and maternity expenses
Discounted price for consumable business products of the employer
Discounted price for services provided by the business of the employer and for the benefit of the employee, spouse and child of the employee
Monthly bill for subscription of broadband, fixed line telephone, mobile phone and pager registered under the name of employee or employer
Subsidy of interest of housing, education and car loan
Gift
Pager
Personal digital assistant
Telephone
Mobile phone
Made 6 April 2009
[Perb. CR(8.09)294/6/4-9 (Sj. 9)(2009)(Sk. 7); LHDN 01/35/(S)/42/51/231-17.10; PN(PU2)80/LVI]
Tan Sri Nor Md bin Yakcop
Second Minister of Finance
[To be laid before the Dewan Rakyat pursuant to subsection 127(4) of the Income Tax Act 1967]
Income Tax (Deduction for Benefit and Gift from Employer to Employee) Rules 2009
Income Tax (Deduction for Benefit and Gift from Employer to Employee) Rules 2009
In exercise of the powers conferred by paragraph 154(1)(b) of the Income Tax Act 1967 [Act 53], the Minister makes the following rules:
Citation and commencement
1. (1) These rules may be cited as the Income Tax (Deduction for Benefit and Gift from Employer to Employee) Rules 2009.
(2) These Rules shall have effect from the year of assessment 2008 and subsequent years of assessment except for paragraph 2(1)(b).
(3) Paragraph 2(1)(b) shall have effect from the year of assessment 2008 until the year of assessment 2010.
Deduction
2. In ascertaining the adjusted income of a person resident in Malaysia from its business in the basis period for a year of assessment, there shall be allowed as deduction expenses incurred by such person in respect of the following benefit and gift to his employees:
(a) payment of monthly bill for subscription of broadband, fixed line telephone, mobile phone or pager issued in the name of the employee or in the name of such person as the employer;
(b) travelling allowance, petrol card or petrol allowance provided for employees from home to place of work and from place of work to home; and
(c) personal digital assistant, telephone, mobile phone or pager.
Made 6 April 2009
[Perb. CR(8.09)294/6/4-9 (Sj. 9)(2009)(Sk. 7); LHDN 01/35/(S)/42/51/231-17.10; PN(PU2)80/LVI]
Tan Sri Nor Md bin Yakcop
Second Minister of Finance
[To be laid before the Dewan Rakyat pursuant to subsection 154(2) of the Income Tax Act 1967]
In exercise of the powers conferred by paragraph 154(1)(b) of the Income Tax Act 1967 [Act 53], the Minister makes the following rules:
Citation and commencement
1. (1) These rules may be cited as the Income Tax (Deduction for Benefit and Gift from Employer to Employee) Rules 2009.
(2) These Rules shall have effect from the year of assessment 2008 and subsequent years of assessment except for paragraph 2(1)(b).
(3) Paragraph 2(1)(b) shall have effect from the year of assessment 2008 until the year of assessment 2010.
Deduction
2. In ascertaining the adjusted income of a person resident in Malaysia from its business in the basis period for a year of assessment, there shall be allowed as deduction expenses incurred by such person in respect of the following benefit and gift to his employees:
(a) payment of monthly bill for subscription of broadband, fixed line telephone, mobile phone or pager issued in the name of the employee or in the name of such person as the employer;
(b) travelling allowance, petrol card or petrol allowance provided for employees from home to place of work and from place of work to home; and
(c) personal digital assistant, telephone, mobile phone or pager.
Made 6 April 2009
[Perb. CR(8.09)294/6/4-9 (Sj. 9)(2009)(Sk. 7); LHDN 01/35/(S)/42/51/231-17.10; PN(PU2)80/LVI]
Tan Sri Nor Md bin Yakcop
Second Minister of Finance
[To be laid before the Dewan Rakyat pursuant to subsection 154(2) of the Income Tax Act 1967]
Windfall Profit Levy (Oil Palm Fruit) (Amendment) (No. 2) Order 2009
Windfall Profit Levy (Oil Palm Fruit) (Amendment) (No. 2) Order 2009
In exercise of the powers conferred by section 6 of the Windfall Profit Levy Act 1998 [Act 592], the Minister makes the following order:
Citation and commencement
1. (1) This order may be cited as the Windfall Profit Levy (Oil Palm Fruit) (Amendment) (No. 2) Order 2009.
(2) This Order is deemed to have come into operation on 15 July 2008.
Amendment of paragraph 5
2. The Windfall Profit Levy (Oil Palm Fruit) Order 2008 [P.U. (A) 250/2008], is amended in paragraph 5—
(a) by substituting for subparagraph (1) the following subparagraph:
“(1) Any owner of an oil palm holding which is not less than 40.46 hectares or 100 acres, or oil palm holdings which in aggregate amount to not less than 40.46 hectares or 100 acres, who worked the oil palm holding, and any oil palm fruit producer who worked an oil palm holding which is not less than 40.46 hectares or 100 acres, or oil palm holdings which in aggregate amount to not less than 40.46 hectares or 100 acres, shall pay to the proper officer of customs a windfall profit levy in respect of oil palm fruit produced by such owner and oil palm fruit producer based on the rate calculated as follows:” and
(b) by inserting after subparagraph (2) the following subparagraph:
“(3) The oil palm holding referred to in subparagraph (1) does not include an oil palm holding in a group settlement area under the Land (Group Settlement Areas) Act 1960 [Akta 530].”.
Made 26 March 2009
[Sulit KE>HE(96)009/20; Perb. CR(8.09)202-28(SJ. 1) Vol. 2; PN(PU2)599]
Tan Sri Nor Md bin Yakcop
Second Minister of Finance
In exercise of the powers conferred by section 6 of the Windfall Profit Levy Act 1998 [Act 592], the Minister makes the following order:
Citation and commencement
1. (1) This order may be cited as the Windfall Profit Levy (Oil Palm Fruit) (Amendment) (No. 2) Order 2009.
(2) This Order is deemed to have come into operation on 15 July 2008.
Amendment of paragraph 5
2. The Windfall Profit Levy (Oil Palm Fruit) Order 2008 [P.U. (A) 250/2008], is amended in paragraph 5—
(a) by substituting for subparagraph (1) the following subparagraph:
“(1) Any owner of an oil palm holding which is not less than 40.46 hectares or 100 acres, or oil palm holdings which in aggregate amount to not less than 40.46 hectares or 100 acres, who worked the oil palm holding, and any oil palm fruit producer who worked an oil palm holding which is not less than 40.46 hectares or 100 acres, or oil palm holdings which in aggregate amount to not less than 40.46 hectares or 100 acres, shall pay to the proper officer of customs a windfall profit levy in respect of oil palm fruit produced by such owner and oil palm fruit producer based on the rate calculated as follows:” and
(b) by inserting after subparagraph (2) the following subparagraph:
“(3) The oil palm holding referred to in subparagraph (1) does not include an oil palm holding in a group settlement area under the Land (Group Settlement Areas) Act 1960 [Akta 530].”.
Made 26 March 2009
[Sulit KE>HE(96)009/20; Perb. CR(8.09)202-28(SJ. 1) Vol. 2; PN(PU2)599]
Tan Sri Nor Md bin Yakcop
Second Minister of Finance
Income Tax (Special Treatment on Interest on Housing Loan) Regulations 2009
In exercise of the powers conferred by subsection 36(1) of the Income Tax Act 1967 [Act 53], the Director General makes the following regulations:
Citation and commencement
1. (1) These regulations may be cited as the Income Tax (Special Treatment on Interest on Housing Loan) Regulations 2009.
(2) These Regulations have effect for the year of assessment 2009 and subsequent years of assessment.
Application
2. (1) These Regulations apply to the following banks and financial institutions:
(a) a bank or finance company licensed or deemed to be licensed under the Banking and Financial Institutions Act 1989 [Act 372];
(b) a bank licensed under the Islamic Banking Act 1983 [Act 276]; and
(c) a development financial institution prescribed under the Development Financial Institutions Act 2002 [Act 618].
(2) Notwithstanding subregulation (1), the Minister may approve any other institutions to which these Regulations may apply.
(3) Any reference to a bank or financial institution in these Regulations shall include a reference to any other institution approved by the Minister under subregulation (2).
Interpretation
3. In these Regulations, “housing loan” means any loan granted by a bank or financial institution to finance the purchase of a residential property.
Gross income of bank or financial institution
4. (1) Subject to this regulation, where in respect of any amount of interest due and payable by an individual on a housing loan granted by a bank or financial institution in the basis period for a year of assessment, a moratorium on such interest is approved by the bank or financial institution, such interest shall not constitute the gross income of that bank or financial institution for that basis period for a year of assessment.
(2) The interest referred to in subregulation (1) is interest which is due and payable for a period of twelve consecutive months beginning from the month where the moratorium is approved by the bank or financial institution.
(3) Notwithstanding subregulation (1), where any amount of interest referred to in subregulations (1) and (2) is received by the bank or financial institution in the basis period for a year of assessment, such interest shall be treated as the gross income of the bank or financial institution for the basis period for that year of assessment.
Conditions relating to individual to whom housing loan was granted, housing loan and moratorium
5. For the purposes of these Regulations, the following conditions shall apply:
(a) relating to the individual to whom the housing loan was granted—
(i) that the individual is a citizen;
(ii) that the employment of the individual has been terminated pursuant to a separation scheme or retrenchment, on or after 1 July 2008; and
(iii) that the termination of the employment of the individual is registered with the Director General of Labour, Ministry of Human Resources;
(b) relating to the housing loan, that the housing loan was granted prior to the termination of the employment of the individual; and
(c) relating to the moratorium, that the application for the moratorium shall be made by the individual to a bank or financial institution on or after 10 March 2009 but not later than 9 March 2010.
Made 10 March 2009
[Perb.0.3865/410;LHDN.01/35/(S)/42/51/231-17.11;PN(PU2)80/LIV]
Dato’ Hasmah binti Abdull ah
Director General of Inland Revenue
In exercise of the powers conferred by subsection 36(1) of the Income Tax Act 1967 [Act 53], the Director General makes the following regulations:
Citation and commencement
1. (1) These regulations may be cited as the Income Tax (Special Treatment on Interest on Housing Loan) Regulations 2009.
(2) These Regulations have effect for the year of assessment 2009 and subsequent years of assessment.
Application
2. (1) These Regulations apply to the following banks and financial institutions:
(a) a bank or finance company licensed or deemed to be licensed under the Banking and Financial Institutions Act 1989 [Act 372];
(b) a bank licensed under the Islamic Banking Act 1983 [Act 276]; and
(c) a development financial institution prescribed under the Development Financial Institutions Act 2002 [Act 618].
(2) Notwithstanding subregulation (1), the Minister may approve any other institutions to which these Regulations may apply.
(3) Any reference to a bank or financial institution in these Regulations shall include a reference to any other institution approved by the Minister under subregulation (2).
Interpretation
3. In these Regulations, “housing loan” means any loan granted by a bank or financial institution to finance the purchase of a residential property.
Gross income of bank or financial institution
4. (1) Subject to this regulation, where in respect of any amount of interest due and payable by an individual on a housing loan granted by a bank or financial institution in the basis period for a year of assessment, a moratorium on such interest is approved by the bank or financial institution, such interest shall not constitute the gross income of that bank or financial institution for that basis period for a year of assessment.
(2) The interest referred to in subregulation (1) is interest which is due and payable for a period of twelve consecutive months beginning from the month where the moratorium is approved by the bank or financial institution.
(3) Notwithstanding subregulation (1), where any amount of interest referred to in subregulations (1) and (2) is received by the bank or financial institution in the basis period for a year of assessment, such interest shall be treated as the gross income of the bank or financial institution for the basis period for that year of assessment.
Conditions relating to individual to whom housing loan was granted, housing loan and moratorium
5. For the purposes of these Regulations, the following conditions shall apply:
(a) relating to the individual to whom the housing loan was granted—
(i) that the individual is a citizen;
(ii) that the employment of the individual has been terminated pursuant to a separation scheme or retrenchment, on or after 1 July 2008; and
(iii) that the termination of the employment of the individual is registered with the Director General of Labour, Ministry of Human Resources;
(b) relating to the housing loan, that the housing loan was granted prior to the termination of the employment of the individual; and
(c) relating to the moratorium, that the application for the moratorium shall be made by the individual to a bank or financial institution on or after 10 March 2009 but not later than 9 March 2010.
Made 10 March 2009
[Perb.0.3865/410;LHDN.01/35/(S)/42/51/231-17.11;PN(PU2)80/LIV]
Dato’ Hasmah binti Abdull ah
Director General of Inland Revenue
Income Tax (Deduction for Expenses Relating to Remuneration of Employee) Rules 2009
In exercise of the powers conferred by paragraph 154(1)(b) of the Income Tax Act 1967 [Act 53], the Minister makes the following rules:
Citation and commencement
1. (1) These rules may be cited as the Income Tax (Deduction for Expenses relating to Remuneration of Employee) Rules 2009.
(2) These Rules have effect for the year of assessment 2009 and subsequent years of assessment.
Interpretation
2. In these Rules—
“employee” means an employee as described in subrule 4(2);
“remuneration” means any wages, salary, or allowance in respect of having or exercising employment.
Application
3. These Rules shall apply to a person who is a resident in Malaysia who employs an employee on full-time basis between the period of 10 March 2009 until 31 December 2010.
Deduction
4. (1) Subject to these Rules, in ascertaining the adjusted income of a person who is a resident in Malaysia from its business in the basis period for a year of assessment, there shall be allowed to that person a further deduction equal to the amount of expenses incurred and allowable under section 33 of the Act in respect of the remuneration paid to his employee.
(2) The deduction under subrule (1) apply only in respect of an employee—
(a) who is a citizen and resident in Malaysia;
(b) whose employment with a previous employer has been terminated pursuant to a separation scheme or retrenchment, on or after 1 July 2008; and
(c) whose termination of employment has been registered with the Director General of Labour, the Ministry of Human Resources.
(3) For the purposes of subrule (1), the amount of the further deduction shall not exceed a maximum amount of ten thousand ringgit for each month in respect of each employee for a maximum period of twelve consecutive months commencing from the first month the employee is employed.
Non-application
5. (1) These Rules shall not apply where—
(a) the employee is employed by a person to replace a former employee of that person for the purpose of carrying out the same or similar function of that former employee;
(b) the former employer and the present employer are associates as defined in section 139 of the Act;
(c) the former employer and the present employer one of whom has control over the other; or
(d) the former employer and the present employer both of whom are controlled by another person.
(2) In this rule, a person has control—
(a) where the person has the power to exercise or is able to exercise or is entitled to acquire, control (whether direct or indirect) over the affairs of another;
(b) where the person has the power to possess or acquire the greater part of the share capital or voting power in another; or
(c) in relation to a partnership, where the person has the right to a share of more than one-half of the assets of the partnership, or to more than one-half of the divisible profits of the partnership.
Made 10 March 2009
[Perb.0.3865/410;LHDN 01/35/(S)/42/51/231-17.11;PN(PU2)80/LIV]
Tan Sri Nor Md bin Yakcop
Second Minister of Finance
[To be laid before the Dewan Rakyat pursuant to subsection 154(2) of the Income Tax Act 1967]
In exercise of the powers conferred by paragraph 154(1)(b) of the Income Tax Act 1967 [Act 53], the Minister makes the following rules:
Citation and commencement
1. (1) These rules may be cited as the Income Tax (Deduction for Expenses relating to Remuneration of Employee) Rules 2009.
(2) These Rules have effect for the year of assessment 2009 and subsequent years of assessment.
Interpretation
2. In these Rules—
“employee” means an employee as described in subrule 4(2);
“remuneration” means any wages, salary, or allowance in respect of having or exercising employment.
Application
3. These Rules shall apply to a person who is a resident in Malaysia who employs an employee on full-time basis between the period of 10 March 2009 until 31 December 2010.
Deduction
4. (1) Subject to these Rules, in ascertaining the adjusted income of a person who is a resident in Malaysia from its business in the basis period for a year of assessment, there shall be allowed to that person a further deduction equal to the amount of expenses incurred and allowable under section 33 of the Act in respect of the remuneration paid to his employee.
(2) The deduction under subrule (1) apply only in respect of an employee—
(a) who is a citizen and resident in Malaysia;
(b) whose employment with a previous employer has been terminated pursuant to a separation scheme or retrenchment, on or after 1 July 2008; and
(c) whose termination of employment has been registered with the Director General of Labour, the Ministry of Human Resources.
(3) For the purposes of subrule (1), the amount of the further deduction shall not exceed a maximum amount of ten thousand ringgit for each month in respect of each employee for a maximum period of twelve consecutive months commencing from the first month the employee is employed.
Non-application
5. (1) These Rules shall not apply where—
(a) the employee is employed by a person to replace a former employee of that person for the purpose of carrying out the same or similar function of that former employee;
(b) the former employer and the present employer are associates as defined in section 139 of the Act;
(c) the former employer and the present employer one of whom has control over the other; or
(d) the former employer and the present employer both of whom are controlled by another person.
(2) In this rule, a person has control—
(a) where the person has the power to exercise or is able to exercise or is entitled to acquire, control (whether direct or indirect) over the affairs of another;
(b) where the person has the power to possess or acquire the greater part of the share capital or voting power in another; or
(c) in relation to a partnership, where the person has the right to a share of more than one-half of the assets of the partnership, or to more than one-half of the divisible profits of the partnership.
Made 10 March 2009
[Perb.0.3865/410;LHDN 01/35/(S)/42/51/231-17.11;PN(PU2)80/LIV]
Tan Sri Nor Md bin Yakcop
Second Minister of Finance
[To be laid before the Dewan Rakyat pursuant to subsection 154(2) of the Income Tax Act 1967]
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