KUALA LUMPUR, Nov 19 — The Finance Bill 2024 tabled in the Dewan Rakyat today aims to amend the Income Tax Act 1967, Real Property Gains Tax Act 1976, Stamp Act 1949, Petroleum (Income Tax) Act 1967, Finance Act 2012, and Finance Act 2023.
The bills were tabled by Deputy Finance Minister Lim Hui Ying for first reading.
For the Income Tax Act 1967 (Act 53), Clause 4 seeks to introduce a new paragraph 6(1)(r) to the act, according to the blue book distributed in Parliament.
The amendment provides that income tax will be imposed on dividend income received by individuals who are shareholders of a company, whether via direct shareholding or nominee if the income is deemed to be derived from Malaysia.
Based on the blue book, the amendment to the Income Tax Act 1967 referred to as the “Principal Act” will come into effect for assessment year 2025 onwards.
Also amended is Paragraph 6(a) to replace Paragraph 34(6)(h) of Act 53 to establish provisions for new conditions for deductions under that paragraph related to contributions made to charitable or community projects.
The Bill further proposes that for contributions exceeding RM300,000, the contributions must be verified by the relevant government authority, and the charitable or community project must be approved by the finance minister.
“For contributions amounting to not more than RM300,000, the contribution and charitable or community project must only be verified and approved by the related government authority.”
For amendments to the the Real Property Gains Tax Act 1976 (Act 169), among others, Clause 19 aims to amend Section 3, to provide that property gains tax must be imposed on every ringgit of taxable profit accrued by a taxpayer in a year of assessment, and not on the total amount of taxable profit for that year.
“With this amendment, tax will be charged separately on taxable profit accrued on each disposal of property,” according to the blue book.
For amendments to the Stamp Act 1949 (Act 378), Clause 24 seeks to amend Section 20A, to impose ad valorem duty on the exchange of real property as a conveyance on sale irrespective of whether the exchange involves a consideration.
The proposed amendment also provides that the exchange of real property between certain parties will not be subject to ad valorem duty.
All amendments will come into effect in the year of assessment 2025 and subsequent years.
Meanwhile, Lim also tabled the Measures for Tax Collection, Administration, and Enforcement Bill 2024 for its first reading in the Dewan Rakyat.
The Bill aims to amend Act 53, Act 169, Act 378, the Petroleum (Income Tax) Act 1967, Windfall Profit Levy 1998, Sales Tax Act 2018, and Service Tax Act 2018.
— Bernama
