PETROLEUM INCOME TAX
1.
Extension of Deduction for Provision of Services and Public Amenities to Project
Relating to Information and Communication
Extension of the above to information and communication technology has been proposed
for the Petroleum (Income Tax) Act, 1967 (PITA), mirroring similar amendment to the
Act.
The proposal has effect from year of assessment 2001.
2.
Expenditure Incurred on the Provision of Scholarship
Expenditure Incurred in Obtaining Recognised Quality Systems & Standards
Amendments to PITA have been proposed to grant the above deductions in line with
similar proposals under the Act. (Please refer to pages 6 and 7 for details).
The proposals are to be effective from year of assessment 2001.
3.
Rentals of Motor Vehicles
Notwithstanding the proposal to raise the qualifying expenditure to RM100,000 for
commercial vehicles, the maximum rentals deductible for such vehicles remain at RM50,000.
4.
Restriction on Deduction for Cash Donation
Currently, PITA grants full deduction of gift of money made by a chargeable person
to an approved institution or organisation.
It is proposed that deduction of gift of money shall not exceed 5% of the statutory
income from petroleum operations.
The proposal will be effective from year of assessment 2001.
5.
Provision of Facilities and Assistance to Director General / Authorised Officers
Existing law allows the DG full and free access to buildings, lands etc to search
and inspect.
In line with similar provision already in the Act, it has been proposed that occupiers
of lands, buildings, etc provide the DG or an authorised officer all reasonable facilities
and assistance for the exercise of his power under the section.
This proposal will have effect from 1st January 2001.
6.
Time Period for Director General to Review Appeal
Currently under the Act, the DG shall within 12 months from the date of receipt of
a notice of appeal review the assessment under appeal. The DG may apply to the Minister
for an extension which, if granted, shall not exceed 6 months from the date of expiry
of the 12-month period. The decision of the Minister is final.
Amendments have been proposed to incorporate the above time frame for the review
of appeals into PITA.
The amendments will have effect on 1st January 2001.
7.
Forwarding of Appeal to Special Commissioners (SC)
Currently PITA does not set a time frame within which the DG is required to forward
a notice of appeal to the SC.
Whilst the Act already provides for a 12-month period (or extended) within which
the DG has to submit the appeal to the SC, a proposal is now made to introduce a
similar provision under PITA.
The proposal has effect from 1st January 2001.
8.
Qualifying Expenditure on Motor Vehicles (Second Schedule)
A parallel amendment to PITA has been proposed to increase the above from RM50,000
to RM100,000 for non-commercial motor vehicles claiming capital allowances. (Please
refer to page 10 for details).
The proposal will be effective from year of assessment 2001.
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