Malaysia legislation
Section 35
Section 35
schedule 3 to the principal Act is amended—
(a)
by deleting paragraph 26;
(b)
in paragraph 27, by substituting for the word “six” the word “five”;
(c)
in subparagraph 38(2), by substituting for the words
“divisible profits of partnership” the words “divisible profits of partnership, or in relation to a limited liability partnership, means the right to a share of more than one-half of the capital contribution whether in cash or in kind of the limited liability partnership and in relation to business trust, means the right to not less than fifty per cent of residual profits of the business trust available for distribution, or not less than fifty per cent of any residual assets of the business trust available for distribution on a winding up”;
(d)
in paragraph 38a, by substituting for subparagraph (2)
the following subparagraph:
“(2) for the purpose of this paragraph—
(a)
“unit trust” has the same meaning assigned to it in section 61a; and
(b)
“company” means a company which holds not less than fifty per cent of residual profits of the unit trust available for distribution, or not less than fifty per cent of any residual assets of the unit trust available for distribution on a winding up.”; and
(e)
by inserting after paragraph 61 the following paragraph:
“61A. (1) Notwithstanding paragraph 48 or 61, as the case may be, but subject to this paragraph, where in the basis period for a year of assessment an asset for which qualifying capital expenditure has been incurred is classified as asset held for sale in accordance with generally accepted accounting principles, such asset shall be deemed to have ceased to be used for the purposes of that paragraph.
25
Finance
(2)
Where subparagraph (1) applies and the asset is sold in the basis period the asset is classified as asset held for sale, the disposal value of the asset for the purposes of this schedule shall be an amount equal to its market value at the date it was classified as asset held for sale or the net proceeds of the sale, whichever is greater.
(3)
Where in the basis period for a year of assessment an asset for which qualifying capital expenditure has been incurred is classified as asset held for sale in accordance with generally accepted accounting principles, such asset shall be deemed to have ceased to be used for the purposes of paragraph 48 or 61, as the case may be, in the following basis period—
(a)
where the asset is sold in the following basis period; or
(b)
where the asset is not sold after the end of the following basis period.
(4)
for the purpose of subsection (3), the disposal value of the asset shall be—
(a)
in the case where the asset is sold in the following basis period, an amount equal to its market value at the end of the basis period such asset is held for sale or the net proceeds of the sale, whichever is greater;
(b)
in the case where the asset is not sold in the following basis period, the market value of the asset at the end of that following basis period.
(5)
Where paragraph (4) applies, in determining the residual expenditure of such asset for that following basis period, the total qualifying expenditure incurred by that person shall be reduced by an amount of annual allowance which would have been made to him for that following basis period as if the asset had been in use in that following basis period for the purpose of business of his.
(6)
Where an asset deemed ceased to be used in accordance with subparagraph (3)(b) is brought into use by the person in a business of his in a basis period for any year of assessment after the basis period the asset is deemed ceased to be used—
(a)
that person shall be deemed to have incurred qualifying capital expenditure for that asset equal to its market value at the date it is brought into use for the purpose of that business; and
(b)
no initial allowance shall be made to that person in relation to an asset under subparagraph (a).
(7)
in this paragraph, “market value” in the case of an industrial building, means the market value as determined by a valuation officer employed by the government.”; and
26
Act 755
(f)
by inserting after paragraph 75a the following paragraph:
“75AA.
Where a partnership or a company is converted into a limited liability partnership in accordance with section 29 or 30 of the Limited Liability
Partnerships Act 2012, any allowance or aggregate amount of allowances for a year of assessment which has not been so made to that partnership or company as ascertained under paragraph 75 shall be made to that limited liability partnership for the purposes of this schedule and section 42 for the following year of assessment.”.
amendment of schedule 4