Malaysia legislation
Section 37
Section 37
Amendment of First Schedule
The First Schedule to the principal Act is amended—
(a)
by inserting after paragraph 1 the following paragraph:
“1a. For the purposes of paragraph 1, the qualifying exploration expenditure incurred by a chargeable person shall not include any amount paid or to be paid in respect of goods and services tax as input tax by the chargeable 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.”; and
(b)
by inserting after paragraph 13 the following paragraph:
“13a. (1) Where in the basis period for a year of assessment a chargeable person has incurred qualifying exploration 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 expenditure in relation to that asset shall be adjusted in the basis period for the 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 exploration expenditure made under subparagraph (1) results in—
(a)
an additional amount, such amount shall be deemed to be part of the qualifying exploration expenditure incurred, and the residual expenditure under paragraph 46 of the
Second Schedule in relation to the asset shall include that additional amount; or
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(b)
a reduced amount, the qualifying exploration expenditure incurred and the residual expenditure under paragraph 46 of the Second Schedule 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 chargeable person has incurred the qualifying exploration 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 expenditure shall be made in the basis period for the year of assessment in which the disposal is made.
(5)
Paragraph 13 shall apply for the purpose of the adjustment referred to in subparagraph (4).”.
Amendment of Second Schedule