Malaysia legislation
Section 17
Section 17
New section 63c
The principal Act is amended by inserting after section 63b the following section:
“Special treatment on rent from the letting of real property of a Real Estate Investment Trust or Property Trust
Fund 63c. (1) The provision of this section shall apply notwithstanding any other provisions of this Act.
(2)
Where in the year of assessment, income of a unit trust consists of a rent from the letting of real property, the amount of the rent shall be treated as gross income of a unit trust from a source consisting of a business for that year of assessment.
(3)
In ascertaining, for a year of assessment, the adjusted income of a unit trust from a source referred to in subsection
(2)
, any deductions to be made under this Act in arriving to that income, in respect of that source for the basis period for that year of assessment shall only be allowed against the gross income from that source but—
(a)
where the amount of the deduction exceeds the gross income from that source for that year of assessment, the excess shall be disregarded for the purposes of this Act; and
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Act 639
(b)
where that source does not produce any income, the deduction from the gross income of that unit trust from that source of income shall not be allowed.
(4)
In ascertaining, for a year of assessment, the statutory income of a unit trust from a source referred to in subsection
(2)
, any allowances for that year of assessment under Schedule 3 in respect of that source shall only be available against the adjusted income of that source and if by reason of an absence or insufficiency of adjusted income from that source for the basis period for that year of assessment, effect cannot be given or be given in full to any allowance for that year of assessment in relation to that source, that allowance which has not been so made shall not be made to the unit trust for any subsequent years of assessment.
(5)
For the purposes of this section, “unit trust” has the same meaning assigned to it under subsection 6la(2).”.
Special provision relating to section 63c