Malaysia legislation
Section 25
Section 25
Schedule 3 to the principal Act is amended—
(a)
by inserting after paragraph 2d the following paragraph:
“2e. For the purpose of paragraph 1, the qualifying expenditure incurred by a person shall not include any amount paid or to be paid in respect of goods and services tax as input tax by the person if he is liable to be registered under the Goods and
Services Tax Act 2014 and has failed to do so, or if he is entitled under that Act to credit that amount as input tax.”;
(b)
by inserting after paragraph 16a the following paragraph:
“16b. Notwithstanding any other provisions of this Schedule, no allowance shall be made to a person under paragraphs 12
and 16 for a year of assessment in respect of any expenditure incurred in relation to paragraphs 37a, 37b, 37c, 37e, 37f, 37g,
37h, 42a and 42b of this Schedule relating to industrial building where the building or part thereof is used by that person for the purpose of letting of property including the business of letting of such property.”;
Act 773
(c)
in subparagraph 19a(3), by inserting after the word
“resident” the words “and incorporated”;
(d)
by inserting after paragraph 61a the following paragraph:
“61b. (1) Notwithstanding any other provisions of this Schedule, where any part of an asset of a person from a business ceases to be used for purposes of a business of his in a basis period for a year of assessment due to replacement with a new part and that new part is depreciated separately in accordance with the generally accepted accounting principles, that part of an asset is deemed to have been disposed of in that basis period for that year of assessment.
(2)
The qualifying expenditure of the part of the asset disposed shall be taken to be the amount as determined in accordance with the generally accepted accounting principles.
(3)
The residual expenditure under paragraph 68 in respect of the part of the asset disposed shall be the qualifying expenditure of the part of an asset disposed reduced by the amount of allowance that have been made or would have been made under this Schedule to that person prior to the disposal of that part of the asset.
(4)
The provisions of this Schedule shall apply to the new part of an asset referred to in subparagraphs (1) and (2).”; and
(e)
by inserting after paragraph 67c the following paragraph:
“67d. (1) Where in the basis period for a year of assessment a person has incurred qualifying plant expenditure, qualifying building expenditure, qualifying agriculture expenditure or qualifying forest expenditure, in relation to an asset and the input tax on the asset is subject to any adjustment made under the Goods and Services Tax Act 2014, the amount of such qualifying expenditure in relation to that asset shall be adjusted in the basis period for a year of assessment in which the period of adjustment relating to the asset as provided under the Goods and Services Tax Act 2014 ends.
(2)
In the event the adjustment of the amount of the qualifying expenditure made under subparagraph (1) results in—
(a)
an additional amount, such amount shall be deemed to be part of the qualifying expenditure incurred, and the residual expenditure under paragraph 68 in relation to the asset shall include that additional amount; or
Finance 21
(b)
a reduced amount, the qualifying expenditure incurred and the residual expenditure under paragraph 68 shall be reduced by such amount, and if the amount of the allowance made or ought to have been made under this
Schedule exceeds the residual expenditure, the excess shall be part of the statutory income of that person from a source consisting of a business in the basis period the adjustment is made.
(3)
The excess amount referred to in subsubparagraph (2)(b)
shall not exceed the total amount of allowances given under this
Schedule.
(4)
Notwithstanding subparagraph (1), where a person has incurred the qualifying plant expenditure, qualifying building expenditure, qualifying agriculture expenditure or qualifying forest expenditure in relation to an asset, and the asset is disposed of at any time during the period of adjustment specified under the Goods and Services Tax Act 2014, the adjustment to such qualifying expenditure shall be made in the basis period for the year of assessment in which the disposal is made.
(5)
Paragraphs 39 and 40 shall apply for the purpose of the adjustment referred to in subparagraph (4).”.
Amendment of Schedule 6