|4. Income Tax Rate for Companies [Paragraph 2, Schedule 1]
There is no change in the 28% rate of income tax for companies.
5. Personal Deduction for Individual and Hindu Joint
Family [Section 46(1)]
Currently, the personal deduction for an individual or a Hindu
joint family is RM4,000. In addition, an extra RM 1,000 is automatically granted
for dependent relatives.
It is proposed that the personal deduction allowed for an individual (in respect
of himself and his dependent relatives, if any) or a Hindu joint family be increased
to RM8,000 effective year of assessment 2000 (current year basis).
6. Deduction for Medical Expenses - Serious Disease
[Section 46(1) (g)]
Current legislation provides for a deduction of up to RM5,000
in respect of medical expenses incurred by an individual on himself, his wife or
his child suffering from a serious disease or in the case of a wife, on herself,
her husband or her child suffering from the said disease.
It is proposed that the language of the further proviso in Section 46(1)(g) be improved
such that, from year of assessment 2000 (current year basis), where the wife has
no total income, any amount expended by her shall be deemed expended by her husband
so long as the deduction does not exceed RM5,000.
or Medical Insurance Premium [Section 49]
It is proposed that from year of assessment 2000 (current
year basis), the current ceiling of RM2,000 given to a resident individual for any
premium paid by him for the purchase of insurance on education or for medical benefits
be increased to RM3,000.
8. Employees Provident Fund (EPF) Annuity Scheme
[New Sub-Section 49(1C)]
The EPF is promoting the purchase of an annuity under the EPF
It is proposed that a new relief of RM1,000 be granted to a resident individual for
any premium paid by him, or his wife but deemed paid by him, for the purchase of
an insurance policy determined by the EPF Board utilising the amount standing to
his credit in the EPF. Where his wife has no total income, the total deduction allowed
shall not exceed RM1,000.
The above proposal is to be effective from year of assessment 2000 (current year
9. Tax Exemption on Income in respect of Musical
Composition / Translation of Books / Literary Work [Paragraph
32A, Schedule 6]
Tax exemption is presently accorded in respect of RM12,000
income received by a resident individual for any musical composition, translation
of books or literary work at the specific request of any agency of the Ministry of
Education or the Attorney General's Chambers provided the income does not form part
of his emoluments in the exercise of his official duties.
It is proposed that effective from year of assessment 2000 (current year basis) the
exemption level be increased from RM12,000 to RM20,000.
10. Application to Vary Tax Instalments [Section
Currently, under the preceding year basis, a person who
is required to make payments by instalment on account of tax may apply to the Director
General of Inland Revenue (DG) not later than the fifteenth of April in that year
of assessment to vary the amount and number of instalments.
With the change from the preceding year basis to the current year basis of assessment
from year 2000, it is proposed that a person may make an application for a variation
of the amount and number of instalments before the thirtieth day of June in that
year of assessment.
This proposal is to be effective from year of assessment 2000 (current year basis).