Malaysia Budget 2003
 
SELF-ASSESSMENT SYSTEM

B. Section 108 Credit Account

A new Section 108 was introduced in the Income Tax (Amendment) Act 2000 so that the requirements under Section 108 are in accord with the basis period and the Self-Assessment System. The new Section 108 credit account consists of :-
     
   
   

RM

   

 

Balance at beginning of basis period  

X

 
Add: Tax paid in the basis period for a year of assessment  

X

   
Amount of tax set-off under Section 110 in the basis period for a year of assessment (subject to certain restriction)
 



X

   

------------

   

XX

   

 

Less : Tax refunded in the basis period for a year of assessment  

X

   

------------

Net tax paid  

XX

   

 

Add : Balance of Section 108 credit brought forward  

X

   

------------

Balance at end of basis period  

XX

 

 

=======

   


In the above, "tax refunded" refers to the refund of overpayment made to the company under Section 111 of the Act which may include penalty discharged.

The definition of "tax refunded" was introduced in the Income Tax (Amendment) Act 2002. Under the amended Section 108(14A), "tax refunded" or "a refund of tax" is a reference to :-

(a)   the amount of instalments that has been paid under Section 107C for a year of assessment less the amount of tax payable (excluding any penalty imposed under Section 112 or 113) for that year of assessment; or
     
(b)   the amount of tax payable (excluding any penalty imposed under Section 112 or 113) discharged by virtue of the assessment that has been reduced or discharged;


provided that the amount of tax payable (excluding any penalty imposed under Section 112 or 113) under that assessment has been paid.

The above amendment is effective from year of assessment 2001.


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© September 2002