FINANCE BILL 2024 TO AMEND SIX ACTS TABLED FOR FIRST READING

KUALA LUMPUR, Nov 19 (Bernama) -- 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 the Finance Act 2023.

The bills were tabled by Deputy Finance Minister Lim Hui Ying for first reading.

For the Income Tax Act 1967, Clause 4 of Act 53 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 year of assessment 2025 and subsequent years.

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 Minister of Finance.

“For contribution 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 amendment to the the Real Property Gains Tax Act 1976, among others, Clause 19 aims to amend Section 3 Act 169, 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, Clause 24 seeks to amend Section 20A of Act 378, 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 valoren 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 the Income Tax Act 1967 (Act 53), Real Property Gains Tax Act 1976 (Act 169), Stamp Act 1949 (Act 378), the Petroleum (Income Tax) Act 1967 (Act 543), Windfall Profit Levy 1998 (Act 592), Sales Tax Act 2018 (Act 806), and Service Tax Act 2018 (Act 807).

-- BERNAMA