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Section 7

Section 54a of the principal Act is amended—

of Finance (No. 2) Act 1998

ActIn forceProvision 7 of 19
Section 7

(a)

by substituting for subsection (1) the following subsection:

“(1)  Subject to the following subsections, where a person who is resident for the basis year for a year of assessment carries on the business of—

(a)

transporting passengers or cargo by sea on a

Malaysian ship; or

(b)

letting out on charter a Malaysian ship owned by him on a voyage or time charter basis, the statutory income for that year of assessment from that business shall be exempt from tax.”;

(b)

in subsection (3) by substituting for the words “the business of transporting passengers or cargo on board a Malaysian ship” the words “a business in respect of which his income is exempt under subsection (1)”;

and

(c)

in subsection (6)—

(i)

by substituting for the semicolon appearing at the end of the definition of “person” a full stop;

and

(ii)

by deleting the definition of “transporting passengers or cargo”.

Amendment of section 60