MEASURES FOR THE COLLECTION, ADMINISTRATION AND ENFORCEMENT OF TAX ACT 2024

Measures for the Collection, Administration and Enforcement of Tax 1 LAWS OF MALAYSIA Act 863 MEASURES FOR THE COLLECTION, ADMINISTRATION AND ENFORCEMENT OF TAX ACT 2024 2 Laws of Malaysia Act 863 Date of Royal Assent ... ... 24 December 2024 Date of publication in the Gazette ... ... 31 December 2024 Publisher’s Copyright C PERCETAKAN NASIONAL MALAYSIA BERHAD All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording and/or otherwise without the prior permission of Percetakan Nasional Malaysia Berhad (Appointed Printer to the Government of Malaysia). Measures for the Collection, Administration and Enforcement of Tax LAWS OF MALAYSIA 3 Act 863 MEASURES FOR THE COLLECTION, ADMINISTRATION AND ENFORCEMENT OF TAX ACT 2024 ARRANGEMENT OF SECTIONS Part I PRELIMINARY Section 1. 2. Short title Amendment of Acts Part II AMENDMENTS TO THE INCOME TAX ACT 1967 3. 4. 5. 6. 7. 8. 9. Commencement of amendments to the Income Tax Act 1967 Amendment of section 66a Amendment of section 77b Amendment of section 82c Amendment of section 113a Amendment of section 125 Amendment of Schedule 5 Part III AMENDMENTS TO THE REAL PROPERTY GAINS TAX ACT 1976 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Commencement of amendments to the Real Property Gains Tax Act 1976 Amendment of section 13 Amendment of section 14 Amendment of section 15 Substitution of section 21a Amendment of section 21b Amendment of section 29 Amendment of section 36 Amendment of section 57a Amendment of Schedule 3 4 Laws of Malaysia Act 863 Part IV AMENDMENTS TO THE STAMP ACT 1949 Section 20. Commencement of amendments to the Stamp Act 1949 21. Amendment of section 3a 22. Amendment of section 12a 23. Amendment of section 15 24. Amendment of section 15a 25. Amendment of section 17 26. Amendment of section 20 27. Amendment of section 20b 28. New sections 35a and 35b 29. Amendment of section 36 30. Amendment of section 37 31. Amendment of section 40 32. Amendment of section 42 33. Amendment of section 43 34. Amendment of section 49 35. New section 50b 36. Amendment of section 52 37. Amendment of section 53 38. Amendment of section 63 39. New sections 72b, 72c and 72d 40. Amendment of section 74 41. New section 76a 42. New section 77d Part V AMENDMENTS TO THE PETROLEUM (INCOME TAX) ACT 1967 43. Commencement of amendments to the Petroleum (Income Tax) Act 1967 44. Amendment of section 34b 45. Amendment of Third Schedule Measures for the Collection, Administration and Enforcement of Tax 5 Part VI AMENDMENT TO THE WINDFALL PROFIT LEVY ACT 1998 Section 46. Commencement of amendment to the Windfall Profit Levy Act 1998 47. New section 27a Part VII AMENDMENTS TO THE SALES TAX ACT 2018 48. Commencement of amendments to the Sales Tax Act 2018 49. Amendment of section 26 50. Amendment of section 27 51. Amendment of Schedule Part VIII AMENDMENT TO THE SERVICE TAX ACT 2018 52. Commencement of amendment to the Service Tax Act 2018 53. Amendment of section 26 6 Laws of Malaysia Act 863 7 Measures for the Collection, Administration and Enforcement of Tax LAWS OF MALAYSIA Act 863 MEASURES FOR THE COLLECTION, ADMINISTRATION AND ENFORCEMENT OF TAX ACT 2024 An Act to provide for measures relating to the implementation of the collection, administration and enforcement of tax by amending the Income Tax Act 1967, the Real Property Gains Tax Act 1976, the Stamp Act 1949, the Petroleum (Income Tax) Act 1967, the Windfall Profit Levy Act 1998, the Sales Tax Act 2018 and the Service Tax Act 2018. [ ] ENACTED by the Parliament of Malaysia as follows: Part I PRELIMINARY Short title 1. This Act may be cited as the Measures for the Collection, Administration and Enforcement of Tax Act 2024. Amendment of Acts 2. The Income Tax Act 1967 [Act 53], the Real Property Gains Tax Act 1976 [Act 169], the Stamp Act 1949 [Act 378], the Petroleum (Income Tax) Act 1967 [Act 543], the Windfall 8 Laws of Malaysia Act 863 Profit Levy Act 1998 [Act 592], the Sales Tax Act 2018 [Act 806] and the Service Tax Act 2018 [Act 807] are amended in the manner specified in Parts II, III, IV, V, VI, VII and VIII respectively. Part II AMENDMENTS TO THE INCOME TAX ACT 1967 Commencement of amendments to the Income Tax Act 1967 3. (1) Sections 4, 6, 7, 8 and 9 come into operation on 1 January 2025. (2) Section 5 has effect for the year of assessment 2025 and subsequent years of assessment. Amendment of section 66a 4. The Income Tax Act 1967, which is referred to as the “principal Act” in this Part, is amended by inserting after subsection 66a(3) the following subsections: “(4) The tax identification number referred to in subsection (1) which has been assigned under this section and made accessible by the Director General to any person shall not be construed as classified material defined in subsection 138(5). (5) Where for any year of assessment a tax identification number is made accessible by the Director General to any person, the Director General shall not be liable for any loss or damage suffered by any person due to any error or omission arising in the service of providing access to the tax identification number, provided that the error or omission was made in good faith and in the ordinary course of the discharge of the duties of the Director General or occurred or arose as a result of any defect or breakdown in the service or in the equipment used for the provision of the service. Measures for the Collection, Administration and Enforcement of Tax 9 (6) A person who, for any reason, has access to a tax identification number of any other person shall not use or cause or allow to be used the tax identification number for any purpose other than for the purposes of this Act. (7) Any person who contravenes subsection (6), shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding four thousand ringgit or to imprisonment for a term not exceeding one year or to both.”. Amendment of section 77b 5. Subsection 77 b (1 a ) of the principal Act is amended by substituting for the words “a person who is a company, limited liability partnership, trust body and co-operative society” the words “the person referred to in subsection (1)”. Amendment of section 82c 6. Subsection 82c(8) of the principal Act is amended by substituting for the words “three days from the date” the words “seventy-two hours from the time”. Amendment of section 113a 7. Section 113a of the principal Act is amended— (a) by renumbering the existing section as subsection (1); and (b) by inserting after the renumbered subsection (1) the following subsection: “(2) Where a person— (a) makes an incorrect return, information return or report by omitting the information required to be provided in accordance with any rules made under paragraph 154(1)(c) 10 Laws of Malaysia Act 863 to implement or facilitate the operation of an arrangement having effect under sections 132, 132 a and 132 b , where such arrangement relates to the automatic exchange of information or the furnishing of a country-by-country report, on behalf of himself or another person; or (b) gives any incorrect information in relation to any information required to be provided in accordance with any rules made under paragraph 154(1)(c) to implement or facilitate the operation of an arrangement having effect under sections 132, 132 a and 132 b , where such arrangement relates to the automatic exchange of information or the furnishing of a country-by-country report, on behalf of himself or another person, then, if no prosecution under subsection (1) has been instituted in respect of the incorrect return, information return or report, or incorrect information, the Director General may by notice in writing require that person to pay a penalty of not less than twenty thousand ringgit and not more than one hundred thousand ringgit and, if that person pays that penalty, or where the penalty is abated or remitted under subsection 124(3), so much, if any, of the penalty as has not been abated or remitted, he shall not be liable to be charged on the same facts with an offence under subsection (1).”. Amendment of section 125 8. Subsection 125(2) of the principal Act is amended by substituting for the words “or 113(2)” the words “, 113(2), 113a(2) or 113b(4)”. Measures for the Collection, Administration and Enforcement of Tax 11 Amendment of Schedule 5 9. Paragraph 12 of Schedule 5 to the principal Act is amended by substituting for the proviso the following proviso: “Provided that the appellant shall give a written notice to the Special Commissioners and the Director General within a period of six months from the date the appellant receives a written notice from the Director General under subsection 102(1).”. Part III AMENDMENTS TO THE REAL PROPERTY GAINS TAX ACT 1976 Commencement of amendments to the Real Property Gains Tax Act 1976 10. This Part comes into operation on 1 January 2025. Amendment of section 13 11. The Real Property Gains Tax Act 1976, which is referred to as the “principal Act” in this Part, is amended in section 13— (a) by substituting for subsection (4) the following subsection: “(4) Where a person makes a return under this Act, the return shall be furnished to the Director General in the prescribed form in an electronic medium or by way of electronic transmission in accordance with section 57a.”; (b) by inserting after subsection (6) the following subsection: “(6a) The notification referred to in subsection (6) shall be furnished to the Director General in an electronic medium or by way of electronic transmission in accordance with section 57a.”; and 12 Laws of Malaysia Act 863 (c) by substituting for subsection (7) the following subsection: “(7) For the purposes of section 21b, a person who disposes of a chargeable asset shall serve the notification referred to in subsection (6) on the acquirer within sixty days from the date of the disposal and such notification shall be deemed to have been served on the acquirer on the day on which the notification is furnished to the Director General in accordance with subsection (6a).”. Amendment of section 14 12. Subsection 14(5) of the principal Act is amended— (a) b y s u b s t i t u t i n g f o r t h e w o r d s “ f u r n i s h e d t o ” the words “served on”; and (b) by substituting for the words “furnished such” the words “served such”. Amendment of section 15 13. Subsection 15(4) of the principal Act is amended— (a) b y s u b s t i t u t i n g f o r t h e w o r d s “ f u r n i s h e d t o ” the words “served on”; and (b) by substituting for the words “furnished such” the words “served such”. Substitution of section 21a 14. The principal Act is amended by substituting for section 21a the following section: “Certificate of non-chargeability 21 a . (1) The Director General shall notify the disposer in a certificate of non-chargeability in the prescribed form in an electronic medium or by way of an electronic transmission in accordance with section 57a where he is satisfied that no chargeable gain has arisen. Measures for the Collection, Administration and Enforcement of Tax 13 (2) The certificate of non-chargeability referred to in subsection (1) shall be deemed to have been notified to the disposer in accordance with subsection (1) on the day the return under section 13 is furnished to the Director General.”. Amendment of section 21b 15. Subsection 21 b (5) of the principal Act is amended by substituting for the words “notice of non-chargeability” the word “notification”. Amendment of section 29 16. Section 29 of the principal Act is amended by inserting after subsection (2) the following subsection: “(2a) Where a person has been convicted of an offence under subsection (1), the court may make a further order requiring the person to