Malaysia legislation
Section 30
Section 30
the principal Act is amended by inserting after section 109f the following sections:
“deduction of tax from income derived from withdrawal of contribution made to a private retirement scheme 109g. (1) Where a person (in this section referred to as
“the payer”) makes payment to an individual (in this section referred to as “the recipient”) in relation to a withdrawal of contribution before reaching the age of fifty-five (other than by reason of death or permanently leaving malaysia) from a fund administered by that payer under a private retirement scheme, the payer shall upon paying the amount, deduct from that amount, tax at a rate applicable to such payment,
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Act 755
and (whether or not tax is so deducted) shall within one month after paying the amount render an account and pay the amount of that tax to the Director general:
Provided that the Director general may under special circumstances allow extension of time for the amount of tax deducted to be paid over.
(2)
Where the payer fails to pay any amount due from him under subsection (1), the amount which he fails to pay shall be increased by a sum equal to ten per cent of the amount which he fails to pay, and that amount and the increased sum shall be a debt due from him to the government and shall be payable forthwith to the Director general.
(3)
Where in pursuance of this section any amount is paid to the Director general by the payer or recovered by the Director general from the payer and if the payer has not deducted that amount in paying the amount under subsection (1) with respect to which that amount relates, the payer may recover that amount from the recipient as a debt due to the payer.
(4)
Notwithstanding the foregoing subsections, where the amount due from the payer under subsection (1) is increased by a sum under subsection (2), the Director general may in his discretion for any good cause shown remit the whole or any part of that sum and, where the amount remitted has been paid, the Director general shall repay the same.
(5)
in this section, “payer” refers to a private retirement scheme provider as approved under section 139q of the capital markets and services Act 2007 to provide and manage a private retirement scheme.
appeal by the payer 109h. (1) A payer referred to in sections 109, 109b or 109f may, within thirty days (or any period extended by the Director general) from the date an amount is due to be made to the Director general under that section, appeal to the special commissioners by reason that such amount is not liable to be paid under this Act and the provision of this Act relating to appeals shall apply accordingly with any necessary modification.
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Finance
(2)
Where an amount is due from the payer to a non-resident person, this section shall not apply or cease to apply if—
(a)
an appeal has been filed to the Special Commissioners by the non-resident person to whom the payer was liable to pay the amount of interest or royalty, or payment under section 4a or paragraph 4(f), of which the amount due under subsection (1) relates;
(b)
such payment to the non-resident made by the payer is disallowed as deduction under section 39 in arriving at the adjusted income of the payer; or
(c)
the amount due under subsection (1) has not been made to the Director general by the payer.”.
amendment of section 111