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It is proposed that effective year of assessment 1999, pensions received
in the above circumstances be exempt from tax whether or not the person is resident
in Malaysia. |
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Currently, the income of any person derived from exercising an employment on board
a Malaysian ship is exempt from tax.
It is proposed that income of an individual instead of a person would be exempted
from tax.
In addition, the definition of "Malaysian ship" for the above exemption
purposes has been narrowed in line with Section 54A(6) of the Income Tax Act,
1967 to exclude a ferry, barge, tug boat, supply vessel, crew boat, lighter,
dredger, fishing boat or other similar vessel.
These proposals are to be effective from year of assessment 1999. |
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Currently, individuals who are not resident in Malaysia are generally subject to
income tax at a flat rate of 30% without any personal reliefs. Non-resident relief
is, however, available in certain circumstances.
Under the Finance (No. 2) Bill 1998, effective year of assessment 1999, it is proposed
that non-resident relief shall be restricted to an individual who is a citizen but
not resident by reason of his employment which is exercised outside Malaysia in the
public services or the service of a statutory authority.
The relief shall be such an amount as will reduce the amount of tax chargeable on
him in respect of his chargeable income for that year of assessment to an amount
which bears the same proportion to the amount of tax which would be so chargeable
if he were resident for that basis year and the tax were charged on his aggregate
income as the amount of his total income bears to the amount of his aggregate income. |
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