Section 43 — FINANCE ACT 2009

(a)

by inserting after paragraph 2C the following paragraph:

“2D. For the purpose of paragraph 1, the capital expenditure incurred by a person on the provision of machinery or plant shall not include any amount paid to a non-resident person in consideration of services rendered in connection with the installation or operation of that machinery or plant, if tax has not been deducted therefrom and paid to the Director General under paragraph 109B(1)(a) of the Act:

Provided that this paragraph shall not apply if the person has paid the amount referred to in subsection 109B(2).”;

(b)

by inserting after subparagraph 19A(2) the following subparagraphs:

“(3) The proviso to subparagraph (1) shall not apply to a company resident in Malaysia which has a paid up capital in respect of ordinary shares of two million and five hundred thousand ringgit and less at the beginning of the basis period for a year of assessment.

(4)

A company referred to in subparagraph (3) shall not include a company where more than—

(a)

fifty per cent of the paid up capital in respect of ordinary shares of the second mentioned 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 second mentioned company; or

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(c)

fifty per cent of the paid up capital in respect of ordinary shares of the second mentioned company and the related company is directly or indirectly owned by another company.

(5)

For the purpose of subparagraph (4), “related company” means a company which has a paid up capital in respect of ordinary shares of more than two million and five hundred thousand ringgit at the beginning of the basis period for a year of assessment.”;

(c)

in paragraph 36—

(i)

by substituting for the full stop at the end of the paragraph a colon; and

(ii)

by inserting the following proviso:

“Provided that this paragraph shall not apply in respect of any amount incurred under paragraph 67C.”;

(d)

in the title before paragraph 37B, by deleting the words “or training”;

(e)

in paragraph 37B—

(i)

by deleting the words “, industrial training or training”;

(ii)

by substituting for the colon a full stop;

(iii)

by deleting the proviso;

(iv)

in subparagraph (a), by inserting after the semi colon the word “or”; and

(v)

by deleting subparagraphs (b) and (d); and

(f)

by inserting after paragraph 67B the following paragraph:

“67C. (1) For the purpose of this Schedule, where—

36 Laws of Malaysia ACT 693

(a)

a person has incurred qualifying plant expenditure in respect of an asset for the purposes of a business of his and in the basis period for a year of assessment the asset is disposed of; and

(b)

pursuant to any written law or agreement, that person is subsequently required to dismantle and remove the asset and restore the site on which the asset is located, the residual expenditure under paragraph 68 of this Schedule shall be deemed to include any amount incurred for dismantling and removing the asset and restoring the site.

(2)

Notwithstanding paragraph 61, in this paragraph “disposed of” means discarded, destroyed or ceased to be used for the purposes of the business.

(3)

This paragraph shall not apply if the asset which has been dismantled and removed is subsequently used for any other business of that person or any other person.

(4)

The amount incurred in subparagraph (1) shall not include any amount paid to a non-resident which are subject to section 109B, if tax has not been deducted therefrom and paid to the Director

General under that section:

Provided that this paragraph shall not apply if the person has paid the amount referred to in subsection 109B(2).”.

Amendment of Schedule 5