Malaysia legislation
Section 18
Section 18
New section 109C
The principal Act is amended by inserting immediately after section 109B, the following new section 109C:
“Deduction of tax from interest paid to a resident 109C. (1) Where any person (in this section referred to as
“the payer”) is liable to pay interest (other than interest exempt from tax under this Act or any order made thereto) accruing in or derived from Malaysia to an individual resident in Malaysia, he shall upon paying or crediting such interest deduct therefrom tax at the rate applicable to such interest, and (whether or not that tax is so deducted) shall within one month after paying or crediting the interest render an account and pay the amount of that tax to the Director General:
Provided that the Director General may under special circumstances, allow extension of time for tax deducted to be paid over.
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(2)
Where the payer fails to pay any amount due from him under subsection (1), the amount which he fails to pay shall be a debt due from him to the Government and shall be payable forthwith to the Director General.
(3)
Where in pursuance of this section any amount is paid to the Director General by the payer and if the payer has not deducted that amount in paying the payment under subsection
(1)
with respect to which the amount relates, he may recover that amount from that individual as a debt due to the payer.
(4)
In this section “person” refers to a bank licensed under the *Banking Act 1973 [Act 102] or the Islamic Banking Act 1983 [Act 276], a finance company licensed under the **Finance
Companies Act 1969 [Act 6], a registered co-operative society,
Bank Pertanian Malaysia, Lembaga Urusan dan Tabung Haji,
Malaysia Building Society Berhad, or any other institution that may be approved by the Minister.”.
Amendment of section 136