41. Dividend paid on or before 31 December 2007

Where the basis period of a company for the year of assessment 2007 ends on a day other than 31 December 2007 and the company paid dividend to its shareholders during the period from the first day of the subsequent basis period to 31 December 2007, then, if the dividend is deemed by virtue of section 14 of the principal

Act to be derived from Malaysia, the company shall be entitled to deduct tax at the rate applicable to the company at the date the dividend is paid.