Finance 1

LAWS OF MALAYSIA

Act 823

FINANCE ACT 2019

2 Laws of Malaysia Act 823

Date of Royal Assent ... ... 30 December 2019

Date of publication in the ... ... 31 December 2019

Gazette

Publisher’s Copyright C
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 Finance 3

LAWS OF MALAYSIA

Act 823

FINANCE ACT 2019

ARRANGEMENT OF SECTIONS

Chapter I
PRELIMINARY

Section

1. Short title
2. Amendment of Acts

Chapter II
AMENDMENTS TO THE INCOME TAX ACT 1967

3. Commencement of amendments to the Income Tax Act 1967

4. Amendment of section 2
5. Amendment of section 6
6. Amendment of section 6a
7. Amendment of section 34
8. Amendment of section 44
9. Amendment of section 46
10. Amendment of section 74
11. Amendment of section 77b
12. Amendment of section 91
13. Amendment of section 96
14. Amendment of section 100
15. Amendment of section 103
16. Amendment of section 104
17. Amendment of section 106
18. Amendment of section 109g
19. Amendment of Schedule 1
20. Amendment of Schedule 3
21. Amendment of Schedule 6
4 Laws of Malaysia Act 823
Chapter III
AMENDMENTS TO THE REAL PROPERTY GAINS TAX ACT 1976

Section

22. Commencement of amendments to the Real Property Gains Tax Act 1976
23. Amendment of section 21b
24. Amendment of Schedule 2
25. Amendment of Schedule 3
26. Amendment of Schedule 5

Chapter IV
AMENDMENT TO THE STAMP ACT 1949

27. Commencement of amendment to the Stamp Act 1949

28. Amendment of First Schedule

Chapter V
AMENDMENTS TO THE PETROLEUM (INCOME TAX) ACT 1967

29. Commencement of amendments to the Petroleum (Income Tax) Act 1967

30. Amendment of section 39
31. Amendment of section 44
32. Amendment of section 65a
33. New section 65aa
34. Amendment of section 83

Chapter VI
AMENDMENT TO THE SALES TAX ACT 2018

35. Commencement of amendment to the Sales Tax Act 2018

36. New Part IXa

Chapter VII
AMENDMENTS TO THE FINANCE ACT 2010

37. Commencement of amendments to the Finance Act 2010

38. Amendments to the Finance Act 2010
 Finance 5
Chapter VIII
AMENDMENT TO THE FINANCE ACT 2018

Section

39. Commencement of amendment to the Finance Act 2018

40. Amendment of section 71
6 Laws of Malaysia Act 823
 Finance 7

LAWS OF MALAYSIA

Act 823

FINANCE ACT 2019

An Act to amend the Income Tax Act 1967, the Real Property
Gains Tax Act 1976, the Stamp Act 1949, the Petroleum (Income
Tax) Act 1967, the Sales Tax Act 2018, the Finance Act 2010
and the Finance Act 2018.

[ ]

ENACTED by the Parliament of Malaysia as follows:

Chapter I
PRELIMINARY

Short title

1. This Act may be cited as the Finance Act 2019.

Amendment of Acts

2. The Income Tax Act 1967 [Act 53], the Real Property Gains
Tax Act 1976 [Act 169], the Stamp Act 1949 [Act 378], the
Petroleum (Income Tax) Act 1967 [Act 543], the Sales Tax Act
2018 [Act 806], the Finance Act 2010 [Act 702] and the Finance
Act 2018 [Act 812] are amended in the manner specified in
Chapters II, III, IV, V, VI, VII and VIII respectively.
8 Laws of Malaysia Act 823

Chapter II
AMENDMENTS TO THE INCOME TAX ACT 1967

Commencement of amendments to the Income Tax Act 1967

3. (1) Paragraph 5(a) has effect from the year of assessment 2020
until the year of assessment 2025.

(2) Section 6 has effect for the year of assessment 2019 and
subsequent years of assessment.

(3) Sections 4, 7, 8, 9, 14, 20 and 21, and paragraph 19(a)

have effect for the year of assessment 2020 and subsequent years
of assessment.

(4) Paragraphs 5(b), 16(a) and 19(b), and sections 10, 11, 13,
15, 17 and 18 come into operation on 1 January 2020.

(5) Section 12 and paragraph 16(b) come into operation on

the coming into operation of this Act.

Amendment of section 2

4. The Income Tax Act 1967, which is referred to as the “principal

Act” in this Chapter, is amended in section 2 by substituting for
subsection (9) the following subsection:

“(9) Any reference—

(a) in subsection 107 c (4 a ), to a company which has a
paid-up capital in respect of ordinary shares of two million
five hundred thousand ringgit and less at the beginning
of the basis period for a year of assessment; and
(b) in paragraph 2a of Schedule 1 and paragraph 19a of
Schedule 3, to a company which has a paid-up capital
in respect of ordinary shares of two million five hundred
thousand ringgit and less at the beginning of the basis
period for a year of assessment and gross income from
source or sources consisting of a business not exceeding
fifty million ringgit for the basis period for that year of
assessment,
shall exclude a business trust and a company which is established
for the issuance of asset-backed securities in a securitization
transaction approved by the Securities Commission.”.
 Finance 9

Amendment of section 6

5. Subsection 6(1) of the principal Act is amended—

(a) in paragraph (i), by substituting for the words

“for a period of four years from the year of assessment
2016” the words “for a period of six years from the
year of assessment 2020”; and

(b) in paragraph (l), by substituting for the words “death

or permanently leaving Malaysia” the words “death,
permanently leaving Malaysia, healthcare or housing,
for which such withdrawal shall be in compliance with
the criteria as set out in the relevant guidelines of the
Securities Commission”.

Amendment of section 6a

6. Section 6a of the principal Act is amended—

(a) in subsection (1), by substituting for the words

“subsections (2) and (3)” the words “subsections (2),
(2a) and (3)”;

(b) by inserting after subsection (2) the following

subsections:

“(2 a ) A rebate shall be granted for a year of

assessment in respect of departure levy which
is charged and levied under the Departure Levy
Act 2019 [Act 813] on any person who leaves Malaysia
by air for the purpose of performing umrah or other
religious pilgrimage and shall be evidenced by the
boarding pass and—

(a) in the case of umrah, a copy of the visa issued

by the embassy of the Kingdom of Saudi
Arabia; or
10 Laws of Malaysia Act 823

(b) in the case of any other religious pilgrimage,

a written verification by a religious body
recognised by the Committee for the
Promotion of Inter Religious Understanding
and Harmony Among Adherents, Prime
Minister’s Department.

(2b) For the purpose of subsection (2a), the rebate—

(a) shall be granted for not more than two times

in respect of the departure levy paid for
the purpose of performing umrah or other
religious pilgrimage; and

(b) shall not be granted in respect of the departure

levy paid for the purpose of performing hajj.”;
and

(c) in subsection (4), by substituting for the words

“subsections (2) and (3)” the words “subsections (2),
(2a) and (3)”.

Amendment of section 34

7. Subsection 34(6) of the principal Act is amended—

(a) in paragraph (h), by substituting for the words “infrastructure

and information and communication technology” the
words “infrastructure, information and communication
technology or maintenance of a building designated as
a heritage site by the Commissioner of Heritage under
the National Heritage Act 2005 [Act 645]”; and

(b) in the proviso to paragraph (k), by substituting for the

words “seven hundred thousand ringgit” the words “one
million ringgit”.

Amendment of section 44

8. Section 44 of the principal Act is amended—

(a) in paragraph (1)(d), by substituting for the words

“or (11c)” the words “, (11c) or (11d)”;
 Finance 11

(b) in subsection (6), by substituting for the proviso to that

subsection the following proviso:

“Provided that the amount to be deducted from the

aggregate income for the relevant year in respect of
any gift of money made to any institution, organization
or fund approved for the purposes of this section by
the Director General shall not exceed ten per cent of
the aggregate income of that person in the relevant
year.”;

(c) by substituting for subsection (6b) the following subsection:

“(6b) Where any institution, organization, appropriate

religious authority, body or public university is aggrieved
by the decision of the Director General in respect of
an application made under subsection (6) or (11d),
the institution, organization, appropriate religious
authority, body or public university may, within thirty
days after being informed of the decision, appeal to
the Minister and the Minister may make any decision
as he considers fit.”;

(d) in subsection (11b), by substituting for the proviso to

that subsection the following proviso:

“Provided that the amount to be deducted pursuant

to this subsection shall not exceed the difference
between the amount of ten per cent of the aggregate
income of that person in the relevant year and the
total amount that has been deducted pursuant to the
proviso to subsections (6), (11c) and (11d) for that
relevant year.”;

(e) in subsection (11c), by substituting for the proviso to

that subsection the following proviso:

“Provided that the amount to be deducted pursuant

to this subsection shall not exceed the difference
between the amount of ten per cent of the aggregate
income of that person in the relevant year and the
total amount that has been deducted pursuant to the
proviso to subsections (6), (11b) and (11d) for that
relevant year.”; and
12 Laws of Malaysia Act 823

(f) by inserting after subsection (11c) the following subsections:

“(11 d ) There shall be deducted pursuant to this
subsection from the aggregate income of a relevant
person for the relevant year reduced by any deduction
falling to be made for that year in accordance with
subsection (1) an amount equal to any gift of money
in the form of—
(a) wakaf made by him in the basis period for that
year to any appropriate religious authority
established under any written law, body
established by that appropriate religious
authority or public university allowed by
that appropriate religious authority to receive
wakaf; or
(b) endowment made by him in the basis period
for that year to a public university:
Provided that—
(a) the wakaf or endowment is made for the purpose
of achieving the objective of establishment
of the appropriate religious authority, body
or public university;
(b) the appropriate religious authority, body or
public university is approved by the Director
General for the purposes of this section on
the application of the appropriate religious
authority, body or public university concerned;
and
(c) the amount to be deducted pursuant to this
subsection shall not exceed the difference
between the amount of ten per cent of the
aggregate income of that person in the
relevant year and the total amount that has
been deducted pursuant to the proviso to
subsections (6), (11b) and (11c).
(11e) For the purpose of subsection (11d), “public
university” means a higher educational institution
having the status of a University established under
the Universities and University Colleges Act 1971
[Act 30] and the Universiti Teknologi MARA established
under the Universiti Teknologi MARA Act 1976
[Act 173].”.
 Finance 13

Amendment of section 46

9. Subsection 46(1) of the principal Act is amended—

(a) by substituting for paragraph (g) the following paragraph:

“(g) medical expenses expended or deemed expended

under subsection (3) in that basis year by that
individual—

(i) on himself if he is undergoing treatment

for a serious disease or on his wife or
child who is undergoing treatment for
a serious disease, or in the case of a
wife, on herself if she is undergoing
treatment for a serious disease or on
her husband or child who is undergoing
treatment for a serious disease; or

(ii) on himself if he is undergoing fertility

treatment or on his wife who is undergoing
fertility treatment, or in the case of
a wife, on herself if she is undergoing
fertility treatment or on her husband
who is undergoing fertility treatment:

Provided that—

(a) the claim is evidenced by a receipt and certification

issued by a medical practitioner registered with
the Malaysian Medical Council that the serious
disease treatment was provided to that individual,
spouse or child, or that fertility treatment was
provided to that individual or the spouse;

(b) the total amount of deduction under this paragraph

is subject to a maximum amount of six thousand
ringgit; and
14 Laws of Malaysia Act 823

(c) for the purpose of subparagraph (ii)—

(A) the individual is married; and

(B) “fertility treatment” means intrauterine

insemination or in vitro fertilization
treatment or any other fertility treatment;”;
and

(b) in paragraph (r), by substituting for the words “one

thousand ringgit” the words “two thousand ringgit”.

Amendment of section 74

10. Subsection 74(4) of the principal Act is amended by substituting

for the words “subsection 103(3), (4), (5), (6), (7) or (8)” the
words “subsection 103(3), (5) or (7)”.

Amendment of section 77b

11. Section 77b of the principal Act is amended by substituting

for subsection (4) the following subsection:

“(4) The tax or additional tax payable under subsection (1)

shall be increased by a sum equal to ten per cent of the amount
of such tax or additional tax.”.

Amendment of section 91

12. Section 91 of the principal Act is amended by inserting after

subsection (6) the following subsection:

“(7) Notwithstanding subsections (1) and (5), the Director

General may at any time make an assessment or additional
assessment, as the case may be, for a year of assessment in
respect of a person, in the amount or additional amount of
chargeable income and tax, in consequence of a mutual agreement
procedure in the double taxation arrangement effected under
section 132.”.
 Finance 15

Amendment of section 96

13. Subparagraph 96(4)(c)(ii) of the principal Act is amended

by substituting for the words “subsection 103(5), (6), (7) or (8)”
the words “subsection 103(5) or (7)”.

Amendment of section 100

14. Section 100 of the principal Act is amended by substituting

for subsection (1) the following subsection:

“(1) A person seeking to appeal against an assessment

after the expiration of the period to make an appeal under
subsection 99(1), may within seven years after the end of that
period, make to the Director General a written application in
the prescribed form for an extension of that period within which
a notice of appeal against that assessment may be given under
that subsection.”.

Amendment of section 103

15. Section 103 of the principal Act is amended—

(a) in subsection (1a)—

(i) by substituting for the colon a full stop; and

(ii) by deleting the proviso;

(b) by deleting subsection (4);

(c) by deleting subsection (6);

(d) by deleting subsection (8); and

(e) in subsection (9), by substituting for the words “ subsection

(1a), (3), (4), (5), (6), (7) or (8)” the words “subsection
(1a), (3), (5) or (7)”.
16 Laws of Malaysia Act 823

Amendment of section 104

16. Paragraph 104(1)(b) of the principal Act is amended—

(a) by substituting for the words “subsection 103(1a), (3),
(4), (5), (6), (7) or (8)” the words “subsection 103(1a),
(3), (5) or (7)”; and
(b) by substituting for the words “subsection 107c(9) or (10)”
the words “subsection 107c(9), (10) or (10a)”.

Amendment of section 106

17. Subsection 106(3) of the principal Act is amended by

substituting for the words “subsection 103(1a), (3), (4), (5), (6),
(7) or (8)” the words “subsection 103(1a), (3), (5) or (7)”.

Amendment of section 109g

18. Subsection 109 g (1) of the principal Act is amended by

substituting for the words “death or permanently leaving Malaysia”
the words “death, permanently leaving Malaysia, healthcare or
housing, for which such withdrawal shall be in compliance with
the criteria as set out in the relevant guidelines of the Securities
Commission”.

Amendment of Schedule 1

19. Schedule 1 to the principal Act is amended—

(a) in Part I—
(i) by substituting for paragraph 1 the following
paragraph:
“1. Except where paragraphs 1a, 2, 2a, 2d, 3 and 4
provide otherwise, income tax shall be charged
for a year of assessment upon the chargeable
income of every person at the following rates:

Chargeable income RM Rate of

income tax
For every ringgit of the 5,000 0 per cent
first
 Finance 17
Chargeable income RM Rate of
income tax
For every ringgit of the 15,000 1 per cent
next
For every ringgit of the 15,000 3 per cent
next
For every ringgit of the 15,000 8 per cent
next
For every ringgit of the 20,000 14 per cent
next
For every ringgit of the 30,000 21 per cent
next
For every ringgit of the 150,000 24 per cent
next
For every ringgit of the 150,000 24.5 per cent
next
For every ringgit of the 200,000 25 per cent
next
For every ringgit of the 400,000 26 per cent
next
For every ringgit of the 1,000,000 28 per cent
next
For every ringgit 2,000,000 30 per cent”;
exceeding

(ii) in paragraph 1a , by substituting for the words

“28 per cent” the words “30 per cent”;

(iii) by substituting for paragraph 2 a the following

paragraph:

“2 a . Subject to paragraphs 2 b , 2 c and 3,

income tax shall be charged for a year of
assessment on the chargeable income of a
company resident and incorporated in Malaysia
which has a paid-up capital in respect of ordinary
shares of two million five hundred thousand
ringgit and less at the beginning of the basis
period for a year of assessment and gross
18 Laws of Malaysia Act 823

income from source or sources consisting of a

business not exceeding fifty million ringgit for
the basis period for that year of assessment at
the following rates:

Chargeable income RM Rate of

income tax
For every ringgit of 600,000 17 per cent
the first
For every ringgit 600,000 24 per cent”; and
exceeding

(iv) by substituting for paragraph 2 d the following

paragraph:

“2d. Subject to paragraphs 2e, 2f and 3, income

tax shall be charged for a year of assessment
on the chargeable income of a limited liability
partnership resident in Malaysia which has
a total contribution of capital (whether in cash
or in kind) of two million five hundred thousand
ringgit and less at the beginning of the basis
period for a year of assessment and gross
income from source or sources consisting of a
business not exceeding fifty million ringgit for
the basis period for that year of assessment at
the following rates:

Chargeable income RM Rate of

income tax
For every ringgit of 600,000 17 per cent
the first
For every ringgit 600,000 24 per cent”; and
exceeding

(b) in Part XVI, by substituting for the words “death or

permanently leaving Malaysia” the words “death,
permanently leaving Malaysia, healthcare or housing,
for which such withdrawal shall be in compliance with
the criteria as set out in the relevant guidelines of the
Securities Commission”.
 Finance 19

Amendment of Schedule 3

20. Paragraph 19a of Schedule 3 to the principal Act is amended—

(a) in subparagraph (1)—

(i) by substituting for the words “one thousand three

hundred” the words “two thousand”; and

(ii) in the proviso, by substituting for the words “thirteen

thousand” the words “twenty thousand”; and

(b) in subparagraph (3), by inserting after the words “at the

beginning of the basis period for a year of assessment”
the words “and gross income from source or sources
consisting of a business not exceeding fifty million
ringgit for the basis period for that year of assessment”.

Amendment of Schedule 6

21. Schedule 6 to the principal Act is amended in subparagraph 13(1)—

(a) b y d e l e t i n g t h e w o r d “ o r ” a t t h e e n d o f
subsubparagraph (a);

(b) by substituting for the full stop at the end of

subsubparagraph (b) the words “; or”; and

(c) by inserting after subsubparagraph (b) the following

subsubparagraph:

“(c) an appropriate religious authority or a body or

a public university approved for the purposes
of subsection 44(11d) in respect of any wakaf
or endowment received including the income
derived therefrom in the basis period for a year
of assessment, so long as the approval remains
in force.”.
20 Laws of Malaysia Act 823

Chapter III
AMENDMENTS TO THE REAL PROPERTY GAINS TAX ACT 1976

Commencement of amendments to the Real Property Gains

Tax Act 1976

22. (1) Sections 23 and 26 come into operation on the coming

into operation of this Act.

(2) Sections 24 and 25 are deemed to have come into operation

on 12 October 2019.

Amendment of section 21b

23. The Real Property Gains Tax Act 1976, which is referred
to as the “principal Act” in this Chapter, is amended in
subsection 21b(1a) by substituting for the words “not a citizen
and not a permanent resident” the words “not a citizen, not a
permanent resident or not a company incorporated in Malaysia”.

Amendment of Schedule 2

24. Schedule 2 to the principal Act is amended by substituting

for paragraph 2a the following paragraph:

“2a. (1) For the purposes of this Schedule, where a disposal of

chargeable assets is subject to tax under Part I of Schedule 5,
references to 1 January 1970 shall be construed as references
to 1 January 2013.

(2) Subparagraph (1) shall not apply to the disposal of

chargeable assets under paragraphs 34 and 34a.”.

Amendment of Schedule 3

25. S c h e d u l e 3 t o t h e p r i n c i p a l A c t i s a m e n d e d i n
subparagraph 13(2) by substituting for the words “1 January 2000”
wherever appearing the words “1 January 2013”.
 Finance 21

Amendment of Schedule 5

26. Schedule 5 to the principal Act is amended—

(a) in Part II, by inserting after the word “company” the

words “incorporated in Malaysia or a trustee of a trust”;
and

(b) in Part III, by inserting after the words “or an executor

of the estate of a deceased person who is not a citizen
and not a permanent resident” the words “, or a company
not incorporated in Malaysia”.

Chapter IV
AMENDMENT TO THE STAMP ACT 1949

Commencement of amendment to the Stamp Act 1949

27. This Chapter comes into operation on 1 January 2020.

Amendment of First Schedule

28. The Stamp Act 1949 is amended in the First Schedule

in subitem 27(a)(ii), in the column “Proper Stamp Duty” by
substituting for the word “RM500” the word “RM2,000”.

Chapter V
AMENDMENTS TO THE PETROLEUM (INCOME TAX) ACT 1967

Commencement of amendments to the Petroleum (Income Tax)

Act 1967

29. (1) Section 30 comes into operation on the coming into

operation of this Act.

(2) Section 31 has effect for the year of assessment 2020 and
subsequent years of assessment.
22 Laws of Malaysia Act 823

(3) Sections 32, 33 and 34 are deemed to have come into

operation on 28 December 2018.

Amendment of section 39

30. The Petroleum (Income Tax) Act 1967, which is referred to

as the “principal Act” in this Chapter, is amended in section 39
by inserting after subsection (6) the following subsection:

“(7) Notwithstanding subsections (1) and (5), the Director

General may at any time make an assessment or additional
assessment, as the case may be, for a year of assessment in
respect of a person, in the amount or additional amount of
chargeable income and tax, in consequence of a mutual agreement
procedure in the double taxation arrangement effected under
section 65a.”.

Amendment of section 44

31. Section 44 of the principal Act is amended by substituting

for subsection (1) the following subsection:

“(1) A person seeking to appeal against an assessment

after the expiration of the period to make an appeal under
subsection 43(1), may within seven years after the end of that
period, make to the Director General a written application in
the prescribed form for an extension of that period within which
a notice of appeal against that assessment may be given under
that subsection.”.

Amendment of section 65a

32. Section 65a of the principal Act is amended by inserting

after subsection (1) the following subsection:

“(1a) For the purposes of this section, arrangements made

with a view to affording relief from double taxation include
any arrangements which modify the effect of arrangements so
made.”.
 Finance 23

New section 65aa

33. The principal Act is amended by inserting after section 65a

the following section:

“International obligations

65aa. (1) Notwithstanding section 65a, if the Minister by

statutory order declares that—

(a) arrangements specified in the order have been made

by the Government to give effect to Malaysia’s
international obligations in relation to tax under this
Act or other taxes of every kind under any written
law; and

(b) it is expedient that those arrangements should have

effect,

then, so long as the order remains in force, notwithstanding

anything in any written law, those arrangements shall have
effect in relation to tax under this Act or other taxes of every
kind under any written law.

(2) Where any arrangements have effect by virtue of this

section, section 71 shall not prevent the disclosure to a duly
authorized servant or agent of the government with which
the arrangements have been made of such information as is
required to be disclosed under the arrangements.

(3) Any order made under this section shall be laid before
the Dewan Rakyat.”.

Amendment of section 83

34. Subsection 83(1) of the principal Act is amended by inserting

after paragraph (bb) the following paragraph:

“(bc) implementing or facilitating the operation of an arrangement

having effect under section 65aa;”.
24 Laws of Malaysia Act 823

Chapter VI
AMENDMENT TO THE SALES TAX ACT 2018

Commencement of amendment to the Sales Tax Act 2018

35. This Chapter comes into operation on a date to be appointed

by the Minister by notification in the Gazette.

New Part IXa

36. The Sales Tax Act 2018 is amended by inserting after

Part IX the following part:

“Part IXa
SPECIAL SCHEMES

Approved Major Exporter Scheme

61a. (1) Subject to the prescribed conditions, there shall

be a scheme to be known as the “Approved Major Exporter
Scheme” which allows any person who qualifies to be
exempted from payment of the whole of sales tax which
may be charged and levied on the taxable goods imported,
transported from designated areas or special areas or purchased
from a registered manufacturer provided that—

(a) the taxable goods shall be exported, or transported

to designated areas or special areas; or

(b) the taxable goods are used as raw materials, packing

and packaging materials or components to be
manufactured, which subsequently shall be exported,
or transported to designated areas or special areas
as goods exempted from sales tax pursuant to an
order made under this Act.

(2) Any person granted an approval under the Approved

Major Exporter Scheme shall record the tax exempted on
the importation, transportation or purchase of the taxable
goods in the form and manner as may be determined by the
Director General.
 Finance 25

(3) Where any person who has been granted an approval

under the Approved Major Exporter Scheme fails to comply
with any prescribed conditions, any sales tax that has been
exempted shall become due and payable by the person from
the date of the non-compliance of the conditions and such
sales tax shall be paid in the form and manner as may be
determined by the Director General.”.

Chapter VII
AMENDMENTS TO THE FINANCE ACT 2010

Commencement of amendments to the Finance Act 2010

37. This Chapter comes into operation on the coming into

operation of this Act.

Amendments to the Finance Act 2010

38. The Finance Act 2010 is amended—

(a) in the national language text, by substituting for section 6

the following section:

“Pindaan seksyen 49

6. Akta ibu dipinda dalam seksyen 49 dengan

menggantikan subseksyen (1 a ) dengan subseksyen
yang berikut:

“(1a) For the purposes of subsection (1)—

(a) where the aggregate amount of deduction

allowed under that subsection in respect of
payments, other than payment of premium
for any deferred annuity contracted by an
individual on or after 1 January 2010, or
contributions or both, is six thousand ringgit
or less, there shall be allowed a further
deduction on any payment of premium for
such deferred annuity:
26 Laws of Malaysia Act 823

Provided that the total of that aggregate

amount of deduction and that further
deduction shall not exceed seven thousand
ringgit; and

(b) where subsection 50(2) or 50(3) applies, the

total deduction under that subsection shall
not exceed six thousand ringgit or where
paragraph (a) applies, shall not exceed seven
thousand ringgit.”;

(b) in the English language text, by substituting for

section 10 the following section:

“Amendment of section 107c

10. Section 107c of the principal Act is amended—

(a) in subsection (4), by inserting after the words

“in a year of assessment” the words “and the
basis period for that year is not less than six
months”;

(b) in subsection (8), by inserting after the words

“(3),” the words “(4),”;

(c) by inserting after subsection (10) the following

subsection:

“(10a) Where for a year of assessment—

(a) no estimate is furnished by

a c o m p a n y, t r u s t b o d y o r
co-operative society and no
direction is given by the Director
General to make payment by
instalment under subsection (8);

(b) no prosecution under section 120

has been instituted in relation to
failure to furnish such estimate;
and
 Finance 27

(c) tax is payable by that company,

trust body or co-operative society
pursuant to an assessment for that
year of assessment,

such tax payable shall, without any further

notice being served, be increased by a sum
equal to ten per cent of the tax payable
and that sum shall be recoverable as if it
were tax due and payable under this Act:

Provided that if that company, trust

body or co-operative society pays that
sum or, where the sum is remitted under
subsection (11), that company, trust body
or co-operative society shall not be liable
to be charged on the same facts with an
offence under section 120.”; and

(d) in subsection (11), by substituting for the words

“or (10)” the words “, (10) or (10a)”.”; and

(c) in the national language text, by substituting for section 35

the following section:

“Pemakaian Bahagian ini

35. Jika terdapat apa-apa ketidakselarasan antara

mana-mana peruntukan Bahagian ini dengan
mana-mana peruntukan Akta ibu, peruntukan Akta ibu
adalah terbatal setakat ketidakselarasan itu.”.

Chapter VIII
AMENDMENT TO THE FINANCE ACT 2018

Commencement of amendment to the Finance Act 2018

39. This Chapter is deemed to have come into operation

on 1 January 2019.
28 Laws of Malaysia Act 823

Amendment of section 71

40. The Finance Act 2018 is amended by substituting for

section 71 the following section:

“Commencement of amendments to the Labuan Business

Activity Tax Act 1990

71. (1) Sections 72, 73, 74 and 75 come into operation

on 1 January 2019.

(2) Sections 76, 77, 78, 79, 80, 81 and 82 have effect
for the year of assessment 2020 and subsequent years of
assessment.”.