Date: Thursday 17-Apr-14


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Invest in Malaysia

Taxation

2. Classes of Income on Which Tax is Chargeable

The income which tax is chargeable is income in respect of:

gains or profits from a business, for whatever period of time carried on;
gains or profits from an employment (salaries, remunerations, etc.);
dividends, interests or discounts;
rents, royalties or premiums;
pensions, annuities or other periodical payments;
other gains or profits of an income nature.

Chargeable income is arrived at after adjusting for allowable expenses incurred in the production of the income, capital allowances and incentives where applicable. Section 34 of the Income Tax Act 1967 allows specific provisions for bad or doubtful debts. However, no deduction for book depreciation is allowed although capital allowances are granted. Unabsorbed business losses may be carried forward indefinitely to offset against business income including companies with pioneer status, provided that the cessation of the period falls on or after 30 September 2005.



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