Malaysia legislation
Section 42
Section 42
Schedule 1 to the principal Act is amended—
(a)
in Part 1—
(i)
by substituting for paragraph 1 the following paragraph:
“1. Except where paragraphs 1A, 2, 2A and 3 provide otherwise, income tax shall be charged for a year of assessment upon the chargeable income of every person at the following rates:
Chargeable Income
RM
Rate of Income Tax
For every ringgit of the first 2,500 0 per cent
For every ringgit of the next 2,500 1 per cent
For every ringgit of the next 15,000 3 per cent
For every ringgit of the next 15,000 7 per cent
For every ringgit of the next 15,000 12 per cent
For every ringgit of the next 20,000 19 per cent
For every ringgit of the next 30,000 24 per cent
For every ringgit exceeding 100,000 27 per cent”;
(ii)
in paragraph 1A, by substituting for the words “28
per cent” the words “27 per cent”;
(iii)
in paragraph 2A, by substituting for the words
“paragraph 3” the words “paragraphs 2B, 2C and 3”;and
Finance 33
(iv)
by inserting after paragraph 2A the following paragraphs:
“2B. The provisions of paragraph 2A shall not apply to a company referred to in that paragraph if more than–
(a)
fifty per cent of the paid up capital in respect of ordinary shares of the company is directly or indirectly owned by a related company;
(b)
fifty per cent of the paid up capital in respect of ordinary shares of the related company is directly or indirectly owned by the first mentioned company; or
(c)
fifty per cent of the paid up capital in respect of ordinary shares of the first mentioned company and the related company is directly or indirectly owned by another company.