Finance Act 2007 · Updated to 1 Oct 2018 · Part I · Amendments to the Income Tax Act 1967
25. New section 110b
Official textFrom Laws of Malaysia Online, unchanged
The principal Act is amended by inserting after section 110a the following section:
“Set-off for tax charged on actuarial surplus 110b. (1) Notwithstanding section 110, where for a basis period for a year of assessment an amount of actuarial surplus from the life fund of an insurer is transferred to the shareholders’ fund pursuant to subsection 60(3a) or (4a), 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 insurer in respect of the life business.
Where—
tax is set off under this section against the tax charged on the chargeable income of an insurer from its shareholders’ fund in respect of life 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
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.
For the purposes of this section, tax charged on the chargeable income of an insurer from its shareholders’
fund in respect of life business shall consist of an amount of tax before taking into account the tax set-off under section 110.
The portion of the surplus referred to in subsection (1)
shall be ascertained in accordance with the formula prescribed by the Minister.”.
Part XII
Part II
Saving and Transitional Provisions
Chapter III
Amendments to the Stamp Act 1949
Chapter IV
Amendments to the Petroleum (Income Tax) Act 1967
Chapter V