Malaysia legislation
Section 6
Section 6
Subsection 34(6) of the principal Act is amended—
(a)
in subsection (4)—
(i)
by substituting for the full stop at the end of that subsection a colon; and
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(ii)
by inserting below that subsection the following proviso to that subsection:
“Provided that where subsection (4A) applies, the amount of deduction to be made shall be the amount of expenditure incurred.”;
(b)
by inserting after subsection (4) the following subsection:
“(4A) A pioneer company may, in a return of income for the year of assessment in which the expenditure referred to in subsection (1) had been incurred, elect that the amount of that expenditure be deducted in the first basis period in respect of its post-pioneer business for a year of assessment”; and
(c)
by inserting after subsection (5) the following subsection:
“(6) For the purposes of this section, the words
“pioneer company” and “post-pioneer business” have the respective meanings assigned to them under the
Promotion of Investments Act 1986.”.
Amendment of section 35 7.
Subsection 35(2) of the principal Act is amended by substituting for the words “and 34A” the words “, 34A and 34B”.
Amendment of section 36 8.
Section 36 of the principal Act is amended—
(a)
in subsection (1)—
(i)
in paragraph (a)—
(A)
in subparagraph (iii), by deleting the word
“or”;
(B)
in subparagraph (iv), by substituting for the word “and” the word “or”; and
(C)
by inserting after subparagraph (iv) the following subparagraph:
“(v) such other transaction as may be prescribed; and”; and
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Finance
(ii)
in paragraph (b), by inserting after the words
“adjusted income” the words “and statutory income”; and
(b)
in subsection (2)—
(i)
by substituting for the words “and adjusted income”
the words “, adjusted income and statutory income”;
and
(ii)
in paragraph (b), by inserting after the words
“adjusted income” the words “and statutory income”.
Amendment of section 39 9.
Paragraph 39(1)(l) of the principal Act is amended—
(a)
by substituting for the words “any expenses” the words
“a sum equal to fifty percent of any expenses”; and
(b)
in the proviso to that paragraph—
(i)
by deleting the word “or” appearing at the end of paragraph (vi); and
(ii)
by inserting after paragraph (vi) the following paragraph:
“(vii) the provision of entertainment which is related wholly to sales arising from the business of that person; or”.
New section 46A