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Finance Act 2004

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Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639

Incorporating all amendments up to 1 January 2007

Date of Royal Assent ... ... ... ...	24 December 2004
Date of publication in the Gazette ... ...	30 December 2004
Date of coming into operation ... ...	As provided in the Act

ACT 639
FINANCE ACT 2004

Chapter I PRELIMINARY

SECTION

1.Short title

2.Amendments of Acts

Chapter II AMENDMENTS TO THE INCOME TAX ACT 1967

SECTION

3.Commencement of amendments to the Income Tax Act 1967

4.Amendment of section 2

5.Amendment of section 6

6.Amendment of section 6a

7.Amendment of section 34

8.Amendment of section 44

9.Amendment of section 45a

10.Amendment of section 46

11.Amendment of section 47

12.Amendment of section 49

13.Amendment of section 61

14.New section 6la

15.Amendment of section 63a

16.Amendment of section 63b

17.New section 63c

18.Special provision relating to section 63c

19.New section 63d

20.Amendment of section 77

21.Amendment of section 86

22.Amendment of section 103

23.New section 109d

24.New section 111b

25.New section 111c

26.Amendment of section 151

27.Amendment of Schedule 1

28.Amendment of Schedule 3

29.Special provision relating to paragraph 3 of Schedule 3

30.Special provision relating to paragraph 35 of Schedule 3

31.Amendment of Schedule 4a

32.Amendment of Schedule 4c

33.Amendment of Schedule 6

Chapter III AMENDMENTS TO THE PETROLEUM (INCOME TAX) ACT 1967

SECTION

34.Commencement of amendments to the Petroleum (Income Tax) Act 1967

35.Amendment of section 2

36.Amendment of section 18

37.Amendment of Second Schedule

38.Special provision relating to paragraph 3 of Second Schedule

39.Special provision relating to paragraph 18 of Second Schedule

Chapter IV AMENDMENT TO THE REAL PROPERTY GAINS TAX ACT1976

SECTION

40.Commencement of amendment to the Real Property Gains Tax Act1976

41.Amendment of Schedule 2

Chapter V AMENDMENT TO THE STAMP ACT 1949

SECTION

42.Commencement of amendment to the Stamp Act 1949

43.Amendment of First Schedule

An Act to amend the Income Tax Act 1967, the Petroleum (Income Tax) Act 1967, the Real Property Gains Tax Act 1976 and the Stamp Act 1949.

[31 December 2004]

ENACTED by the Parliament of Malaysia as follows:

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/1.Short title

1. Short title

This Act may be cited as the Finance Act 2004.

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/2.Amendments of Acts

2. Amendments of Acts

The Income Tax Act 1967 [Act 53], the Petroleum (Income Tax) Act 1967 [Act543], the Real Property Gains Tax Act 1976 [Act 169] and the Stamp Act 1949 Act 378] are amended in the manner specified in Chapters II, III, IV and V respectively.

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/3.Commencement of amendments to the Income Tax Act 1967

3. Commencement of amendments to the Income Tax Act 1967

(1) Sections 4, 5, 6, and subparagraph 7(b)(ii) and sections8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 23, 27, 28, 29, 30, 31 and 32 have effect for the year of assessment 2005 and subsequent years of assessment.

(2) Paragraph 7(a) has effect for the year of assessment 2001 and subsequent years of assessment.

(3) Subparagraph 7(b)(i) and sections20, 21 and 22 have effect for the year of assessment 2004 and subsequent years of assessment.

(4) Sections 24, 25 and 26 shall come into operation on 1 January 2005.

(5) Paragraph 33(a) has effect for the year of assessment 2003 and subsequent years of assessment.

(6) Paragraph 33(b) is deemed to have come into operation on 11 September 2004.

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/4.Amendment of section 2

4. Amendment of section 2

The Income Tax Act 1967, which is referred to as the "principal Act" in this Chapter, is amended in section 2--

(a) in Subsection (1)--

(i) by inserting after the definition of "business" the following definition:

"Central Bank" means the Central Bank of Malaysia established under section 3 of the Central Bank of Malaysia Act 1958 [Act 519]'; and

(ii) by inserting after the definition of "royalty" the following definition:

"Securities Commission" means the Securities Commission established under section 3 of the Securities Commission Act 1993 [Act 498]'; and

(b) in subsection (8) by substituting for the words "in accordance with the principles of Syariah" the words "approved by the Central Bank or the Securities Commission, as a scheme which is in accordance with the principles of Syariah where such disposal is strictly required for the purpose of complying with those principles but which will not be required in any other schemes of financing".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/5.Amendment of section 6

5. Amendment of section 6

Subsection 6(1) of the principal Act is amended--

(a) in paragraph (h) by substituting for the full stop at the end of that paragraph a semicolon; and

(b) by inserting after paragraph (h) the following paragraph:

"(i) subject to the provision of section 109D but notwithstanding any other provisions of this Act, income tax shall be charged for each year of assessment upon the income of a non-resident unit holder which consists of income distributed by the unit trust referred to in a at the appropriate rate as specified under Part X of Schedule 1.".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/6.Amendment of section 6a

6. Amendment of section 6a

a(3a) of the principal Act is amended by substituting for the words "four hundred" the words "five hundred".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/7.Amendment of section 34

7. Amendment of section 34

Section 34 of the principal Act is amended--

(a) by inserting after subsection (3) the following subsections:

"(3A) The reference to the debt which is partly irrecoverable under paragraph (2)(b), shall be deemed, in the case of a bank, to include all interest in respect of a loan or credit facility accrued from the date that such loan or facility is classified as non-performing loan in accordance with the relevant guidelines issued by the Central Bank.

(3B) For the purpose of subsection (3A), "bank" means a bank or a finance company or a banking and finance company licensed or deemed to be licensed under the Banking and Financial Institutions Act 1989 [Act372] or Islamic Banking Act 1983 [Act 276], or an institution prescribed under the Development Financial InstitutionsAct 2002 [Act618]"; and

(b) in subsection (6)--

(i) by substituting for paragraph (m) the following paragraph:

"(m) an amount equal to the expenditure, not being capital expenditure, incurred by a company in the relevant period for the purpose of obtaining accreditation for a laboratory or as a certification body, as evidenced by a certificate issued by the Department of Standards Malaysia:

Provided that the expenditure incurred in the relevant period shall be deemed to be incurred by that company in the basis period for the year of assessment in which the certificate is issued;"; and

(ii) by inserting after paragraph (m) as amended the following paragraph:

"(ma) an amount twice the amount of the expenditure, not being capital expenditure, incurred by a company in the relevant period for the purpose of obtaining certification for recognized quality systems and standards, and halal certification, evidence by a certificate issued by a certification body as determined by the Minister:

Provided that the expenditure incurred in the relevant period shall be deemed to be incurred by that company in the basis period for the year of assessment in which the certificate is issued;".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/8.Amendment of section 44

8. Amendment of section 44

Section 44 of the principal Act is amended--

(a) in paragraph (l)(d) by substituting for the words "or (11)" the words ", (11) or (11A)"; and

(b) by inserting after subsection (11) the following subsection:

"(11A) There shall be deducted pursuant to this subsection from the aggregate income of a company for the relevant year reduced by any deduction for that year in accordance with subsection (1) an amount equal to the payment of zakat perniagaanwhich is paid in the basis period for that relevant year to an appropriate religious authority established under any written law or any person authorized by such religious authority:

Provided that-- (a) the amount to be deducted pursuant to this subsection shall not exceed one-fortieth of the aggregate income of the company in the relevant year; and (b) the company is not an offshore company.".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/9.Amendment of section 45a

9. Amendment of section 45a

a of the principal Act is amended by substituting for the word "two" the word "three".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/10.Amendment of section 46

10. Amendment of section 46

Section 46(1) of the principal Act is amended--

(a) in paragraph (e), by substituting for the word "five" the word "six"; and

(b) in paragraph (i), by substituting for the word "five" the word "seven".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/11.Amendment of section 47

11. Amendment of section 47

Paragraph 47(l)(b) of the principal Act is amended by substituting for the word "two" the word "three".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/12.Amendment of section 49

12. Amendment of section 49

Section 49of the principal Act is amended--

(a) in subsection (1) by substituting for the word "five" the word "six"; and

(b) in subsection (1A) by substituting for the word "five" the word "six".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/13.Amendment of section 61

13. Amendment of section 61

Section 61 of the principal Act is amended--

(a) in the proviso to subsection (1A) by substituting for the words "exempt income" the words "income exempt from tax, other than income exempt under a,"; and

(b) by inserting after subsection (1A) the following subsection:

"(lB) Any income which is distributed by a unit trust to a unit holder under subsection (1A) shall be deemed to be derived from Malaysia.".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/14.New section 6la

14. New section 6la

The principal Act is amended by inserting after Section 61 the following section:

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/15.Amendment of section 63a

15. Amendment of section 63a

a of the principal Act is amended by inserting after subsection (5) the following subsection:

"(6) This section shall not apply to a unit trust referred to in subsection 6lA(2).".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/16.Amendment of section 63b

16. Amendment of section 63b

b of the principal Act is amended by inserting after subsection (2) the following subsection:

"(3) This section shall not apply to a unit trust referred to in subsection 6lA(2).".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/17.New section 63c

17. New section 63c

The principal Act is amended by inserting after b the following section:

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/18.Special provision relating to section 63c

18. Special provision relating to section 63c

Notwithstanding the provision of Section 63c of the principal Act as introduced by section 17 of this Act, the provisions of sections 43 and 44 of the principal Act shall apply to a unit trust dealt with in Section63c of the principal Act in respect of its adjusted loss (if any) or an allowance which is deemed to be made to that unit trust under paragraph 75 of Third Schedule of the principal Act, which adjusted loss or allowance of the unit trust is ascertained prior to the coming into operation of section17 of this Act.

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/19.New section 63d

19. New section 63d

The principal Act is amended by inserting after c the following section:

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/20.Amendment of section 77

20. Amendment of section 77

Section 77 of the principal Act is amended--

(a) by substituting for subsection (1) excluding the proviso to that subsection the following subsection:

"(1) Every person, other than a company, trust body or co-operative society to which section77a applies, shall for each year of assessment furnish to the Director General a return in the prescribed form--

(a) in the case of that person who is carrying on a business, not later than 30 June in the year following that year of assessment; or

(b) in any other case than the case in paragraph (a), not later than 30 April in the year following the year of assessment:"; and

(b) by inserting after subsection (1) as amended by this Act the following subsection:

"(1A) Where subsection 45(2) applies, a reference to a person under paragraph 1(a) includes a reference to an individual where his wife or her husband who elects, as the case may be, is carrying on a business.".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/21.Amendment of section 86

21. Amendment of section 86

Section 86(1) of the principal Act is amended by substituting for the word "April" the word "June".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/22.Amendment of section 103

22. Amendment of section 103

Subsection103(12)of the principal Act is amended--

(a) in paragraph (a), by deleting the word "and" appearing at the end of the paragraph;

(b) by substituting for paragraph (b) the following paragraph:

"(b) in the case of a person referred to under paragraph 77(l)(a), 30 June in the year following the year of assessment; and"; and

"(c) in any other case other than the cases referred to in paragraphs (a) and (b) , 30 April in the year following the year of assessment.".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/23.New section 109d

23. New section 109d

The principal Act is amended by inserting after c the following section:

(2) Where a unit trust (in this section referred to as the payer) distributes income to a non-resident unit holder which is deemed to be derived from Malaysia, the payer shall upon distributing the income, deduct therefrom tax at the rate applicable to such income and shall within one month after distributing such income, render an account and pay the amount of that tax to the Director General:

Provided that the Director General may--

(a) give notice in writing to the payer requiring him to deduct and pay tax at any other rates or to distribute the income without deduction of tax; or

(b) under special circumstances, allow extension of time for the amount of tax deducted to be paid over.

(3) Where the payer fails to pay any amount due from him under subsection (2), that amount which he fails to pay shall be increased by an amount equal to ten per cent of the income liable to deduction of tax under that subsection and the total sum shall be a debt due from him to the Government and shall be payable forthwith to the Director General.

(4) Where in pursuance of this section any amount is paid to the Director General by the payer or recovered by the Director General from the payer--

(a) the Director General shall, in the manner provided by section110, apply that amount towards payment of the tax charged on the unit holder to whom the payer distributes income to which that amount relates; and

(b) if the payer has not deducted that amount in distributing the income under subsection (2) with respect to which that amount relates, he may recover that amount from that unit holder as a debt due to the payer.

(5) The provision of section 110 shall apply mutatis mutandis to tax deducted under this section.".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/24.New section 111b

24. New section 111b

The principal Act is amended by inserting after Part VII the following Part:

" Part VIIa

FUND FOR TAX REFUND

Establishment of Fund for Tax Refund

(2) There shall be paid from time to time into the Fund such amount of tax collected under this Act as may be authorized by the Minister.

(3) The moneys of the Fund shall be applied for the making of a refund of an amount of tax paid in excess of the amount payable as ascertained in section 111 of this Act.

(4) The Fund shall be administered by the Accountant General of Malaysia.

(5) Notwithstanding the provisions of subsection (2) and the Financial Procedure Act 1957, the Minister may from time to time authorize the payment into the Consolidated Revenue Account in the Federal Consolidated Fund of all or any part of the moneys of the Fund.".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/25.New section 111c

25. New section 111c

The principal Act is amended by inserting after b the following section:

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/26.Amendment of section 151

26. Amendment of section 151

The principal Act is amended by substituting for section 151 the following section:

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/27.Amendment of Schedule 1

27. Amendment of Schedule 1

First Schedule of the principal Act is amended by inserting after Part IX the following Part:

Notwithstanding Part I, income tax shall be charged on the income of a nonresident unit holder consisting of income distributed to that unit holder referred to in d which is derived from Malaysia at the rate of 28% of gross.".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/28.Amendment of Schedule 3

28. Amendment of Schedule 3

Schedule 3 of the principal Act is amended--

(a) in paragraph 3--

(i) by renumbering that paragraph as subparagraph 3(1);

(ii) in subparagraph 3(1) as renumbered, by substituting for the words "paragraphs 3A to" the word "paragraph"; and

(iii) by inserting after subparagraph 3(1) the following subparagraph:

"(2) For the purpose of this Schedule, the qualifying building expenditure in the case of purchase of a building shall be the amount of the purchase price of that building.";

(b) by deleting paragraphs 3A, 4 and 5; and

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

(ii) by deleting the proviso to the paragraph.

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/29.Special provision relating to paragraph 3 of Schedule 3

29. Special provision relating to paragraph 3 of Schedule 3

Notwithstanding the provision of paragraph 3 of Schedule 3 to the principal Act as amended under paragraph 28(a) of this Act, where the amount of qualifying building expenditure has been determined pursuant to paragraph 3, 3A, 4 or 5 of the principal Act before the coming into operation of the amendment to those paragraphs under section 28 of this Act, that amount of qualifying building expenditure shall continue to apply for the purposes of that Schedule.

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/30.Special provision relating to paragraph 35 of Schedule 3

30. Special provision relating to paragraph 35 of Schedule 3

Notwithstanding the provision of paragraph 35 of Schedule 3 to the principal Act, where prior to the coming into operation of the amendment to that paragraph under paragraph 28(c) of this Act, a person has incurred capital expenditure on the construction or the purchase of a building which is used as an industrial building, no charge (if any) shall be made on that person under paragraph 35 Schedule 3 to the principal Act as amended if the building is disposed off after the basis period for a year of assessment which is the fiftieth year of assessment after the year of assessment in the basis year in which that building was constructed.

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/31.Amendment of Schedule 4a

31. Amendment of Schedule 4a

a of the principal Act is amended by inserting after paragraph 8 the following paragraph:

"9. The Minister may prescribe any capital expenditure incurred by a person in his business as qualifying farm expenditure and the amount of deduction in respect of that qualifying farm expenditure which would otherwise fall to be made to him under paragraph 4.".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/32.Amendment of Schedule 4c

32. Amendment of Schedule 4c

cof the principal Act is amended in paragraph 2(a) by substituting for the word "2005" the word "2010".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/33.Amendment of Schedule 6

33. Amendment of Schedule 6

Schedule 6 of the principal Act is amended--

(a) in subparagraph 25(1)--

(i) in subsubparagraph (a), by deleting the word "or" at the end of that subsubparagraph;

(ii) in subsubparagraph (b), by substituting for the full stop at the end of that subsubparagraph the words "; or " ; and

(iii) by inserting after subsubparagraph (b) the following subsubparagraph:

"(c) if the retirement takes place on reaching the compulsory age of retirement pursuant to a contract of employment or collective agreement at the age of 50 but before 55 and that employment has lasted for ten years with the same employer or with companies in the same group: Provided that the sum shall not exceed an amount ascertained by multiplying the sum of six thousand ringgit by the number of completed years of service in that employment."; and

(b) by inserting after paragraph 33 the following paragraph:

"33A. Interest paid or credited to any company not resident in Malaysia, other than such interest accruing to a place of business in Malaysia of such company--

(a)in respect of securities issued by the Government; or

(b) in respect of Islamic securities or debenture issued in Ringgit Malaysia, other than convertible loan stock, approved by the Securities Commission.".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/34.Commencement of amendments to the Petroleum (Income Tax) Act 1967

34. Commencement of amendments to the Petroleum (Income Tax) Act 1967

(1) Section 35 has effect for the year of assessment 2003 and subsequent years of assessment.

(2) Section 36 has effect for the year of assessment 2005 and subsequent years of assessment.

(3) Sections 37, 38 and 39 have effect for the year of assessment 2006 and subsequent years of assessment.

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/35.Amendment of section 2

35. Amendment of section 2

The Petroleum (Income Tax) Act 1967, which is referred to as the "principal Act" in this Chapter, is amended in section 2 by substituting for the definition of "petroleum operations" the following definition:

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/36.Amendment of section 18

36. Amendment of section 18

Paragraph 18(1)(h) of the principal Act is amended--

(a) by substituting for the semicolon at the end of the paragraph a colon; and

(b) by inserting the proviso to that paragraph as follows:

"Provided that this paragraph shall not apply if the payer has paid the amount of deduction of tax and the increased amount which is equal to ten per cent of that deduction which are due and payable under the provisions of that law;".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/37.Amendment of Second Schedule

37. Amendment of Second Schedule

The SecondSchedule of the principal Act is amended--

(a) in paragraph 3--

(i) by renumbering that paragraph as subparagraph 3(1);

(ii) in subparagraph 3(1) as renumbered, by substituting for the words "paragraphs 3A to" the word "paragraph"; and

(iii) by inserting after subparagraph 3(1) the following subparagraph:

"(2) For the purpose of this Schedule, the qualifying building expenditure in the case of purchase of a building shall be the purchase price of that building.";

(b) by deleting paragraphs 3A, 4 and 5; and

(i) by substituting for the colon at the end of that paragraph a full stop; and

(ii) by deleting the proviso to that paragraph.

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/38.Special provision relating to paragraph 3 of Second Schedule

38. Special provision relating to paragraph 3 of Second Schedule

Notwithstanding the provision of paragraph 3 of Second Schedule to the principal Act as amended under paragraph 37(a) of this Act, where the amount of qualifying buildingexpenditure ha been determined pursuant to paragraph 3, 3A, 4 or 5 of the principal Act prior tothe coming into operation of the amendment to those paragraphs under section 37 of this Act, that amount of qualifying building expenditure shall continue to apply for the purposes of that Schedule.

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/39.Special provision relating to paragraph 18 of Second Schedule

39. Special provision relating to paragraph 18 of Second Schedule

Notwithstanding the provision of paragraph 18 of Second Schedule to the principal Act, where prior to the coming into operation ofthe amendment under paragraph 37(c)of this Act, a person has incurred capital expenditure on the constructionor the purchase of a building which is used as an industrial building,no charge (if any) shall be made on that person under paragraph 18of Second Schedule to the principal Act as amended if the building is disposed offafter the basis period for a year of assessment which is the fiftiethyear of assessment after the year of assessment in the basis yearin which that building was constructed.

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/40.Commencement of amendment to the Real Property Gains Tax Act1976

40. Commencement of amendment to the Real Property Gains Tax Act1976

This Chapter is deemed to have come intooperation on 11 September 2004.

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/41.Amendment of Schedule 2

41. Amendment of Schedule 2

The Real Property Gains Tax Act 1976 isamended in Second Schedule in subparagraph 3(g) by substitutingfor that subparagraph the following subparagraph:

"(g)the disposal of any chargeableasset pursuant to a scheme of financing approved by the Central Bankor the Securities Commission as a scheme which is in accordance withthe principles of Syariah, where such disposal is strictly requiredfor the purpose of compliance with those principles but which willnot be required for any other schemes of financing.".

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/42.Commencement of amendment to the Stamp Act 1949

42. Commencement of amendment to the Stamp Act 1949

This Chapter is deemed to have come intooperation on 11 September 2004.

Unannotated Statutes of Malaysia - Principal Acts/FINANCE ACT 2004 Act 639/FINANCE ACT 2004 ACT 639,,/43.Amendment of First Schedule