Malaysia legislation
Section 16
Section 16
The principal Act is amended by inserting after section 110b the following section:
“set-off for tax charged on actuarial surplus under takaful business 110c. (1) Notwithstanding section 110, where for a basis period for a year of assessment an amount of actuarial surplus from the family fund of an operator is transferred to the
Act 764
shareholders’ fund pursuant to subparagraph 60aa(9)(a)(vi)
or 60aa(10)(a)(vi), any amount of tax charged on the portion of that surplus shall be set off against the tax charged on the chargeable income from the shareholders’ fund of that operator in respect of the family business.
(2)
Where—
(a)
tax is set off under this section against the tax charged on the chargeable income of an operator from its shareholders’ fund in respect of family business for a year of assessment and the amount of the tax set-off exceeds the tax charged for that year, the excess shall be disregarded; or
(b)
there is no tax charged for that year, so much of the amount of tax that would otherwise be set off but for the absence of such tax charged shall be disregarded.
(3)
For the purposes of this section, tax charged on the chargeable income of an operator from its shareholders’ fund in respect of family business shall consist of an amount of tax before taking into account the tax set-off under section 110.
(4)
The portion of the surplus referred to in subsection (1)
shall be ascertained in accordance with the formula prescribed by the Minister.”.
amendment of section 112