1
Finance (No. 2)
LAWS OF MALAYSIA
REPRINT
Act 274
FINANCE (NO. 2) ACT 1982
Incorporating all amendments up to 1 January 2006
PUBLISHED BY
THE COMMISSIONER OF LAW REVISION, MALAYSIA
UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968
IN COLLABORATION WITH
PERCETAKAN NASIONAL MALAYSIA BHD
2006
2
ACT 274
Laws of Malaysia
FINANCE (NO. 2) ACT 1982
Date of Royal Assent
... ... ... ... ...
30 December 1982
Date of publication in the Gazette ... ...
31 December 1982
PREVIOUS REPRINT
First Reprint
...
...
...
...
...
2001
3
Finance (No. 2)
LAWS OF MALAYSIA
Act 274
FINANCE (NO. 2) ACT 1982
ARRANGEMENT OF SECTIONS
CHAPTER I
PRELIMINARY
Section
1.
Short title and commencement
2.
Amendment of Acts and Ordinances
CHAPTER II
AMENDMENTS TO THE INCOME TAX ACT 1967
3.
Commencement of amendments to the Income Tax Act 1967
4.
Amendment of section 34
5.
New section 34A
6.
Amendment of section 35
7.
Amendment of section 39
8.
Amendment of section 67
9.
Amendment of section 103
10.
Amendment of section 104
11.
New section 107A
12.
Amendment of section 127
13.
Amendment of section 128
14.
Amendment of Schedule 3
15.
Amendment of Schedule 6
16.
Amendment of Schedule 7A
4
ACT 274
Laws of Malaysia
CHAPTER III
AMENDMENTS TO THE PETROLEUM
(INCOME TAX) ACT 1967
Section
17.
Commencement of amendments to the Petroleum (Income Tax) Act
1967
18.
Amendment of section 18
19.
Amendment of section 65A
CHAPTER IV
AMENDMENTS TO THE STAMP
ORDINANCE 1949
20.
Commencement of amendments to the Stamp Ordinance 1949
21.
Amendment of section 16
22.
New section 20A
23.
Amendment of First Schedule
24.
Amendment of Second Schedule
25.
Amendment of Third Schedule
CHAPTER V
AMENDMENTS TO THE STAMP ORDINANCE
(SABAH)
26.
Commencement of amendments to the Stamp Ordinance (Sabah)
27.
New section 5A
28.
Amendment of section 16
29.
New section 20A
30.
Amendment of First Schedule
31.
Amendment of Second Schedule
32.
Amendment of Third Schedule
CHAPTER VI
AMENDMENTS TO THE STAMP ORDINANCE
(SARAWAK)
33.
Commencement of amendments to the Stamp Ordinance (Sarawak)
5
Finance (No. 2)
Section
34.
New sections 3A and 3B
35.
Amendment of First Schedule
36.
Amendment of Second Schedule
CHAPTER VII
AMENDMENTS TO THE SALES TAX ACT 1972
37.
Commencement of amendment to the Sales Tax Act 1972
38.
Amendment of section 31
39.
New section 31A
6
ACT 274
Laws of Malaysia
7
Finance (No. 2)
LAWS OF MALAYSIA
Act 274
FINANCE (NO. 2) ACT 1982
An Act to amend the Income Tax Act 1967 [Act 53], the *Petroleum
(Income Tax) Act 1967 [Act 45 of 1967], the **Stamp Ordinance
1949 [Ord. No. 59 of 1949], the Stamp Ordinance (Sabah) [Cap.
137], the Stamp Ordinance (Sarawak) [Cap. 32] and the Sales Tax
Act 1972 [Act 64] and to provide for matters connected therewith.
[
]
BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan
Agong with the advice and consent of the Dewan Negara and
Dewan Rakyat in Parliament assembled, and by the authority of
the same, as follows:
CHAPTER I
PRELIMINARY
Short title and commencement
1.  This Act may be cited as the Finance (No. 2) Act 1982 and
shall have effect or be deemed to have effect as provided in this
Act.
Amendment of Acts and Ordinances
2.  The Income Tax Act 1967, the Petroleum (Income Tax) Act
1967, the **Stamp Ordinance 1949, the Stamp Ordinance (Sabah),
the Stamp Ordinance (Sarawak) and the Sales Tax Act 1972 are
amended respectively in the manner specified in Chapters II, III,
IV, V, VI and VII respectively.
*NOTE--The Petroleum (Income Tax) Act 1967 [Act 45 of 1967] has been revised to become the
Petroleum (Income Tax) Act 1967 [Act 543]
**The Stamp Ordinance 1949 [Ord. No. 59 of 1949] has been revised to become the Stamp Act
1949 [Act 378].
8
ACT 274
Laws of Malaysia
CHAPTER II
AMENDMENTS TO THE INCOME TAX ACT 1967
Commencement of amendments to the Income Tax Act 1967
3. (1) Except for sections 4, 5, 6, 7, 8, 9, 10, 11, 12, 14 and
paragraph 15(a), the provisions of this Chapter shall have effect
for the year of assessment 1983 and subsequent years of assessment.
(2) Sections 4, 5, 6 and 14 shall have effect for the year of
assessment 1984 and subsequent years of assessment.
(3) Sections 7, 8, 9, 10, 11 and 12 shall come into force on
1 January 1983.
(4) Paragraph 15(a) shall have effect on those cases whose
approval for retirement is given on or after 22 October 1982.
Amendment of section 34
4.  Section 34 of the Income Tax Act 1967, which in this
Chapter is referred to as "the principal Act", is amended by deleting
subsection (7).
New section 34A
5.  The principal Act is amended by inserting immediately after
section 34 the following new section 34A:
"Special deduction for research expenditure approved by
Minister
34A. (1) In ascertaining the adjusted income of a person from
a business for the basis period for a year of assessment,
deductions shall be made from the gross income from the
business for that period in respect of expenditure, not being
capital expenditure incurred on plant, machinery, fixtures,
land, premises, buildings, structures or works of a permanent
nature or on alterations, additions or extensions thereof or in
the acquisition of any rights in or over any property, incurred
by that person during that period on research approved by the
Minister.
9
Finance (No. 2)
(2) The Minister in approving the research shall allow a
further deduction of one third of the amount of expenditure
on research in addition to the deduction under subsection (1)
and may impose such conditions as he thinks fit or may
specify the period for the purpose of deduction under this
section.
(3) Where any deduction in respect of expenditure on research
is made under this section, no deduction in respect of that
expenditure shall be made under section 33 or 34.".
Amendment of section 35
6.  Section 35 of the principal Act is amended by substituting for
the words "and 34" in subsection (2) the words ", 34 and 34A".
Amendment of section 39
7.
Subsection 39(1) of the principal Act is amended--
(a) by deleting the word "or" appearing at the end of paragraph
(g);
(b) by substituting for the full stop at the end of paragraph
(h) a semi-colon and the word "or"; and
(c) by inserting immediately after paragraph (h) the following
new paragraph (i):
"(i) any contract payment from which tax is deductible
under section 107A, if tax has not been deducted
therefrom and paid to the Director General in
accordance with subsection (1) of that section.".
Amendment of section 67
8.  Section 67 of the principal Act is amended by inserting
immediately before the figures "108" in subsection (4) the figures
"107A,".
Amendment of section 103
9.  Section 103 of the principal Act is amended by inserting
immediately before the figures "108(5)" in subsection (7) the words
"107A(2) or".
10
ACT 274
Laws of Malaysia
Amendment of section 104
10.  Subsection 104(1) of the principal Act is amended by inserting
immediately before the figures "109(2)" in paragraph (c) the words
"107A(2) or".
New section 107A
11.  The principal Act is amended by inserting immediately after
section 107 the following new section 107A:
"Deduction of tax from contract payment
107A. (1) Where any person (in this section referred to as
" t h e payer") is liable to make contract payment to a
non-resident contractor in respect of services under a contract,
he shall upon paying or crediting such contract payment
deduct therefrom tax at the rate of--
(a) fifteen per cent of the contract payment on account
of tax which is or may be payable by that non-resident
contractor for any year of assessment; and
(b) five per cent of the contract payment on account of
tax which is or may be payable by employees of that
non-resident contractor for any year of assessment,
and (whether or not that tax is so deducted) shall within one month
after paying or crediting such contract payment render an account
and pay the amount of that tax to the Director General:
Provided that the Director General may--
(i) give notice in writing to the payer requiring him to
deduct and pay tax at some other rates or to pay
or credit the contract payment without deduction of
tax; or
(ii) under special circumstances, allow extension of
time for tax deducted to be paid over.
(2) Where the payer fails to pay any amount due from him
under subsection (1), the amount which he fails to pay shall be a
debt due from him to the Government and shall be payable forthwith
to the Director General.
11
Finance (No. 2)
(3) Where in pursuance of this section any amount is paid to
the Director General by the payer or recovered by the Director
General from the payer--
(a) the Director General shall apply the amount paid or
recovered under paragraph (1)(a) towards payment of the
tax payable for any year of assessment by the non-resident
contractor to whom the payer was liable to pay the contract
payment to which that amount relates;
(b) the Director General shall refund the amount paid or
recovered under paragraph (1)(b) to the non-resident
contractor to whom the payer was liable to pay the contract
payment to which that amount relates as and when the
Director General deems appropriate; and
(c) if the payer has not deducted any amount in paying the
contract payment with respect to which the amount relates,
he may recover the amount from the non-resident contractor
as a debt due to the payer.
(4) In relation to any case, nothing in paragraph (1)(b) shall
prevent the deduction of any tax (not being tax deducted in accordance
with this subsection) in accordance with section 107.
(5) In this section--
"contract payment" means any payment, not being a payment
that is a royalty within the meaning of subsection 2(1) made for
services under a contract to the non-resident contractor or his
agent or any other person acting on his behalf;
"contract project", in relation to any non-resident contractor,
includes any undertaking, project or scheme, being an undertaking,
project or scheme carried on, carried out or performed in Malaysia;
"non-resident contractor" means any person who is not resident
in Malaysia within the meaning of section 7 or 8 and who, under
a contract or a subsidiary contract (not being a contract of service
or apprenticeship) or an agreement or arrangement undertakes
(otherwise than as an employee) any services under a contract;
"person" includes a partnership;
"professional service", in relation to any non-resident contractor,
includes any advisory, consultancy, technical, industrial, commercial
or scientific service;
12
ACT 274
Laws of Malaysia
"services under a contract" in relation to any non-resident
contractor, means--
(a) the performing or rendering of any work or professional
service in Malaysia, being work or professional service
in connection with, or in relation to, any contract project;
or
(b) the granting, providing or supplying of the use, or the
right to use, in Malaysia (whether or not in connection
with or in relation to any contract project), any personal
property or any services of any person being a person
other than the non-resident contractor.".
Amendment of section 127
12.  Section 127 of the principal Act is amended by inserting
immediately before the figures "108" appearing twice in subsection
(5) the figures "107A,".
Amendment of section 128
13.  Section 128 of the principal Act is amended by inserting
immediately before the words "or as a result of taking up a new
employment" in paragraph (1)(b) the words "or as a result of being
transferred by his employer temporarily outside Malaysia".
Amendment of Schedule 3
14.  Schedule 3 to the principal Act is amended by inserting
immediately after paragraph 37A the following new paragraph
37B:
"Qualifying expenditure: Building used for research
37B.  The provisions of this Schedule relating to industrial
building shall apply, mutatis mutandis, to a building or part
thereof being in use for the purpose of research approved by
the Minister within the meaning of section 34A; and in such
application the reference to capital expenditure incurred on
the construction of a building or part thereof shall include
any capital expenditure incurred on the alteration or renovation
of rented premises for the purpose of carrying on therein
such research.".
13
Finance (No. 2)
Amendment of Schedule 6
15.
Part I of Schedule 6 to the principal Act is amended--
(a) by inserting immediately after paragraph 25 the following
new paragraph 25A:
"25A. Sums received by way of gratuity paid out of public
funds on retirement from an employment under any written
law."; and
(b) by inserting immediately after the words "specified under
any written law" appearing in paragraph 30 the words "or
if the Director General is satisfied that the retirement was
due to ill-health".
Amendment of Schedule 7A
16.  Schedule 7A to the principal Act is amended by substituting
for the word "four" in paragraph 2(b) the word "seven".
CHAPTER III
AMENDMENTS TO THE PETROLEUM (INCOME TAX)
ACT 1967
Commencement of amendments to the Petroleum (Income Tax)
Act 1967
17. (1) The provisions of this Chapter, except paragraph 18(b),
shall have effect for the year of assessment 1981 and subsequent
years of assessment.
(2) Paragraph 18(b) shall come into force on 1 January 1983.
Amendment of section 18
18.  Paragraph 18(1)(h) of the Petroleum (Income Tax) Act 1967,
which in this Chapter is referred to as the "principal Act", is
amended--
(a) by inserting immediately after the word "interest" the
words "or royalty"; and
14
ACT 274
Laws of Malaysia
(b) by inserting immediately after the words "from Malaysia"
t h e words "or contract payment to a non-resident
contractor".
Amendment of section 65A
19.
Section 65A of the principal Act is amended--
(a) by inserting immediately after subsection (2) the following
new subsection (3):
"(3) Any arrangements to which effect is given under
this section may include--
(a) provision for relief from tax with respect to any
person of any particular class;
(b) provision as to income which is not itself
subject to double taxation; and
(c) provision for exempting from tax any person or
any person of any particular class or of exempting
from tax (wholly or in part) the income of any
person or any person of any particular class.";
and
(b) by renumbering the existing subsections (3) and (4) as
the new subsections (4) and (5) respectively.
CHAPTER IV
AMENDMENTS TO THE STAMP ORDINANCE 1949
Commencement of amendments to the Stamp Ordinance 1949
20.  The provisions of this Chapter shall come into force on
1 January 1983.
Amendment of section 16
21.  Section 16 of the Stamp Ordinance 1949, which in this Chapter
is referred to as "the Ordinance", is amended by deleting the words
", not being a settlement," in subsection (1).
15
Finance (No. 2)
New section 20A
22.  The Ordinance is amended by inserting immediately after
section 20 the following new section 20A:
"Exchange of real property
20A.  Where upon the exchange of any real property for any
other real property, or upon the partition or division of any
real property, any consideration is paid or given, or agreed
to be paid or given, for equality--
(a) the principal or only instrument whereby the exchange
or partition or division is affected is to be charged
with the same ad valorem duty as a conveyance on
sale for the consideration, and with that duty only;
and
(b) where in any such case there are several instruments
for completing the title of either party, the principal
instrument is to be ascertained and the other instruments
are to be charged, with duty in the manner hereinbefore
p r o v i d e d in the case of several instruments of
conveyance."
Amendment of First Schedule
23.
The First Schedule to the Ordinance is amended--
(a) by deleting items 1, 8, 9, 11, 14, 15, 16, 26, 28, 33, 44,
54, 55, 62, 63, 72, 79 and 80;
(b) in item 2:
(i) by substituting for the amount "RM2.00" the amount
"RM5.00";
(ii) by deleting the word "or" at the end of Exemption
(vii);
(iii) by substituting for the full stop at the end of
Exemption (viii) the word "; or"; and
(iv) by inserting immediately after Exemption (viii) the
following new Exemption (ix):
"(ix) p u r s u a n t to any statute requirement or in
a c c o r d a n c e with the directions of any
Government Department or Agency.";
16
ACT 274
Laws of Malaysia
(c) in item 4:
(i) by substituting for the amount "RM1.00" the amount
"RM3.00";
(ii) by substituting for the amount "RM50" wherever
it appears the amount "RM300";
(d) by inserting immediately after the words "See Conveyance
on Sale" in item 5 the words "and sections 19 and 22";
(e) by substituting for the amount "RM5.00" in item 6 the
amount "RM10.00";
(f) by substituting for the words "The same as a deed" in
item 10 the amount "RM100.00";
(g) by substituting for the amount "25 sen" in item 17 the
amount "RM1.00";
(h) by substituting for the amount "RM5.00" in item 18 the
amount "RM1.00";
(i)
(i) by substituting for the amount "RM5.00" in sub
sub-item 22(2)(a) the amount "RM10.00";
(ii) by deleting the words "For every RM100 and also
for any fractional part of RM100 of the annuity"
in sub-item 22(3); and
(iii) by substituting for the amount "25 sen" in sub-item
22(3) the amount "RM10.00";
(j) by substituting for the words "When the penalty or amount
secured does not exceed RM500 the same duty as a
charge or mortgage for the penalty or amount secured.
When the penalty or amount exceeds RM500, RM2" in
item 23 the amount "RM10.00";
(k) in item 24:
(i) by inserting immediately after the words "obtaining
letters of administration" the words"where the estate
exceeds RM50,000";
(ii) by deleting sub-items (a) and (b);
(iii) by inserting the amount "RM10.00" under the heading
`Proper Stamp Duty'; and
17
Finance (No. 2)
(iv) by substituting for the amount "RM10,000" in the
Exemption the amount "RM50,000";
(l) by substituting for the amount "RM5.00" in item 25 the
amount "RM10.00";
(m)
(i) by substituting for the words "One-quarter" in
sub-item 27(e) the words "Two-fifths"; and
(ii) b y substituting for the amount "RM2.00" in
sub-item 27(g) the amount "RM10.00";
(n) by substituting for the amount "10" in item 29 the amount
"15";
(o) in item 32:
(i) by deleting sub sub-items (b)(i) and (ii);
(ii) by inserting the amount "30 sen" under the heading
`Proper Stamp Duty' in sub-item (b);
(iii) b y substituting for the amount "RM5.00" in
s u b sub-items (e) (ii), (f) and (i) the amount
"RM10.00"; and
(iv) by deleting sub-item (a) of the Exemptions and
renumbering sub-items (b) and (c) as sub-items (a)
and (b) respectively;
(p) by substituting for the amount "RM2.00" appearing twice
in item 34 the amount "RM10.00";
(q) by substituting for the words "The same duty as a
conveyance on sale for a consideration equal to the value
of the property of greater value." in item 43 the following:
"(a) In the case specified 20A:
See that section
in section
(b) In any other case:
RM10.00.";
(r) by inserting immediately after the words "See Bond" in
item 47 the words "(item 23)";
(s) (i) b y substituting for the amount "RM5.00" in
sub sub-item 49(1)(d) the amount "RM10.00";
(ii) b y substituting for the amount "RM1.00" in
sub sub-item 49(1)(e) the amount "RM10.00";
18
ACT 274
Laws of Malaysia
(iii) by inserting immediately after the word "LEASE" in
sub-item 49(2) the words "OR AGREEMENT FOR LEASE";
and
(iv) by substituting for the word "ten" in the Exemption
to item 49 the words "two hundred";
(t) by substituting for the amount "50 sen" in item 50 the
amount "RM2.00";
(u) by substituting for the amount "20 sen" in item 51 the
amount "RM1.00";
(v) by substituting for the words "The same duty as a deed."
in item 53 the amount "RM100.00";
(w) by substituting for the amount "RM10.00" in item 56 the
words "See Exchange";
(x)
(i) by deleting sub sub-items 57(a)(i) and (ii); and
(ii) by inserting the amount "RM10.00" under the heading
of `Proper Stamp Duty' of sub-item 57(a);
(y)
(i) by substituting for sub-item 58(1) the following:
"(1) (a) Policy of Sea Insurance
i n c l u d i n g time policies
or policies for covering
a vessel or her machinery
o r fittings whilst under
construction or repair or
on trial, whether the period
e x c e e d s twelve months
or not ... ...  ...  ...
RM2.00
(b) For policies containing a
continuation
clause,
additional duty ...  ...
RM2.00
NOTE--When a policy of sea insurance is drawn
in a set according to the custom of marine insurers
and one of the set is duly stamped, the other or
others of the set shall, unless issued or in some
manner negotiated apart from such duly stamped
policy, be exempt from duty; and, upon proof of
the loss or destruction of a duly stamped policy
forming one of a set, any other policy of the set
which has not been issued or in any manner negotiated
apart from such lost or destroyed policy may although
unstamped, be admitted in evidence to prove the
contents of such lost or destroyed policy.";
19
Finance (No. 2)
(ii) by substituting for the amount "RM1.00" in sub-
item 58(2) the amount "RM2.00";
(iii) by substituting for the amount "50 sen" in sub-item
58(3) the amount "RM2.00";
(iv) by deleting the words "For every RM1,000 insured
or part thereof" in sub-item 58(4);
(v) by substituting for the amount "10 sen" in sub-item
58(4) the amount "RM10.00";
(vi) by substituting for the amount "25 sen" in sub-item
58(5) the amount "RM2.00";
(vii) by substituting for the amounts "RM1.00" and "50
sen" in sub-item 58(6) the amount "RM2.00";
(viii) by substituting for the amount "RM1.00" in sub-
item  58(7) the amount "RM2.00";
(ix) by deleting the words "For every RM1,000 insured
or part thereof" appearing in sub-item 58(8); and
(x) by substituting for the amount "20 sen" in sub-item
58(8) the amount "RM2.00";
(z) in item 59:
(i) by substituting for the word "OF" after the word
"POWER" the word "OR";
(ii) by inserting the amount "RM10.00" under the heading
of `Proper Stamp Duty';
(iii) by deleting the whole of sub-items (a), (b) and (c);
and
(iv) by inserting immediately after item 59 the following
new Exemption:
"
Exemption
For the sole purpose of appointing or authorizing
any person to vote as proxy at a meeting of a
Company or Association.";
(aa) by substituting for the words "20 sen for every RM100
or for every fractional part of RM100 of the amount or
value of the money for which the note is made" in
sub-item 60(b) the amount "RM1.00";
20
ACT 274
Laws of Malaysia
(bb) in item 65:
(i) by inserting the words "same duty as charge itself
but subject to a maximum of RM10.00." under the
heading of `Proper Stamp Duty'; and
(ii) by deleting the whole of sub-items (a), (b) and (c);
(cc) (i) by adding immediately after the word "RELEASE" in
item 66 the words "OR RENUNCIATION"; and
(ii) by substituting for the amount "RM5.00" in sub-item
66(d) the amount "RM10.00";
(dd) in item 69:
(i) by inserting immediately after the word "SETTLEMENT"
the words "being an Instrument of Settlement or
Agreement for a Settlement";
(ii) by inserting the words "See section 16 and item 32:
Conveyance" under the heading `Proper Stamp Duty';
and
(iii) by deleting sub-items (1) and (2);
(ee) by substituting for the amount "RM1.00" in item 70 the
amount "RM2.00";
(ff) by substituting for the words "SHARE WARRANT issued
under the provisions of the Companies Act 1965, or STOCK
CERTIFICATE to bearer" in item 71 the words "SHARE WARRANT
OR STOCK CERTIFICATE to bearer";
(gg) by substituting for the amount "RM5.00" appearing twice
in item 75 the amount "RM10.00"; and
(hh) by substituting for the amount "50 sen" in item 78 the
amount "RM3.00".
Amendment of Second Schedule
24.
The Second Schedule to the Ordinance is amended--
(a) by inserting immediately after item 1 the following new
item 1A:
"1A.
AFFIDAVIT, STATUTORY
The Commissioner
DECLARATION, etc.--No. 2
for Oaths."; and
21
Finance (No. 2)
(b) by deleting items 4, 7, 10, 11, 13 and 16.
Amendment of Third Schedule
25. The Third Schedule to the Ordinance is amended by deleting
item 6.
CHAPTER V
AMENDMENTS TO THE STAMP ORDINANCE (SABAH)
Commencement of amendments to the Stamp Ordinance (Sabah)
26. The provisions of this Chapter shall come into force on
1 January 1983.
New section 5A
27. The Stamp Ordinance (Sabah), which in this Chapter is referred
to as "the Ordinance", is amended by inserting immediately after
section 5 the following new section 5A:
"Loan for the purposes of small business
5A. Every instrument being the only or principal or primary
security for the payment or repayment of a loan to a small
business shall be indorsed by an authority approved by the
Minister of Finance that the loan was made for the purposes
of a small business.".
Amendment of section 16
28. Section 16 of the Ordinance is amended by deleting the words
", not being a settlement," in subsection (1).
New section 20A
29. The Ordinance is amended by inserting immediately after
section 20 the following new section 20A:
"Exchange of real property
20A. Where upon the exchange of any real property for any
other real property, or upon the partition or division of any
22
ACT 274
Laws of Malaysia
real property, any consideration is paid or given, or agreed
to be paid or given, for equality--
(a) the principal or only instrument whereby the exchange
or partition or division is effected is to be charged
with the same ad valorem duty as a conveyance on
sale for the consideration and with that duty only;
and
(b) where in any such case there are several instruments
for completing the title of either party, the principal
i n s t r u m e n t is to be ascertained and the other
instruments are to be charged, with duty in the
manner hereinbefore provided in the case of several
instruments of conveyance.".
Amendment of First Schedule
30.
The First Schedule to the Ordinance is amended--
(a) by deleting items 1, 8, 9, 11, 14, 15, 16, 26, 28, 33, 44,
54, 55, 62, 63, 72, 79 and 80;
(b) in item 2:
(i) by substituting for the amount "RM2.00" the amount
"RM5.00";
(ii) by deleting the word "or" appearing at the end of
Exemption (vii);
(iii) by substituting for the full stop appearing at the
end of Exemption (viii) the word "; or"; and
(iv) by inserting immediately after Exemption (viii) the
following new Exemption (ix):
"(ix) p u r s u a n t to any statute requirement or in
a c c o r d a n c e with the directions of any
Government Department or Agency.";
(c) in item 4:
(i) by substituting for the amount "RM1.00" the amount
"RM3.00"; and
(ii) by substituting for the amount "RM50" wherever
it appears the amount "RM300";
23
Finance (No. 2)
(d) by inserting immediately after the words " See
Conveyance on Sale" in item 5 the words "and sections
19 and 22";
(e) by substituting for the amount "RM5.00" in item 6 the
amount "RM10.00";
(f) by substituting for the words "The same as a deed" in
item 10 the amount "RM100.00";
(g) by substituting for the amount "25 sen" in item 17 the
amount "RM1.00";
(h) by substituting for the amount "RM5.00" in item 18 the
amount "RM1.00";
(i)
(i) b y substituting for the amount "RM5.00" in
sub sub-item 22(2)(a) the amount "RM10.00";
(ii) by deleting the words "For every RM100 and also
for any fractional part of RM100 of the annuity" in
sub-item 22(3); and
(iii) by substituting for the amount "25 sen" in sub-item
22(3) the amount "RM10.00";
(j) by substituting for the words "When the penalty or amount
secured does not exceed RM500 the same duty as a
charge or mortgage for the penalty or amount secured.
When the penalty or amount exceeds RM100, RM2" in
item 23 the amount "RM10.00";
(k) in item 24:
(i) by inserting immediately after the words "obtaining
letters of administration" the words "where the estate
exceeds RM50,000";
(ii) by deleting sub-items (a) and (b);
(iii) by inserting the amount "RM10.00" under the heading
`Proper Stamp Duty'; and
(iv) by substituting for the amount "RM10,000" in the
Exemption the amount "RM50,000";
(l) by substituting for the amount "RM5.00" in item 25 the
amount "RM10.00";
24
ACT 274
Laws of Malaysia
(m)
(i) by renumbering sub-item 27(a) as sub sub-item
27(a)(i);
(ii) by inserting after sub sub-item 27(a)(i) the following
new sub sub-item 27(a)(ii):
"(ii) Being instruments under section 5A--
Not exceeding RM250,000
of the aggregate loans in a
calendar year
...
...
RM1.00 for
every RM1,000
or fractional
part thereof.
For
each
additional
RM1,000
or
part
thereof
.........
RM5.00.";
(iii) by substituting for the words "One-quarter" in sub-
item 27(e) the words "Two-fifths"; and
(iv) b y substituting for the amount "RM2.00" in
sub-item 27(g) the amount "RM10.00";
(n) by substituting for the amount "10" in item 29 the amount
"15";
(o) in item 32:
(i) by deleting sub-items (b)(i) and (ii);
(ii) by inserting the amount "30 sen" under the heading
`Proper Stamp Duty' in sub-item (b);
(iii) b y substituting for the amount "RM5.00" in
s u b sub-items (e) (ii), (f) and (i) the amount
"RM10.00"; and
(iv) by deleting sub-item (a) of the Exemptions and
renumbering sub-items (b) and (c) as sub-items (a)
and (b) respectively;
(p) by substituting for the amount "RM2.00" appearing twice
in item 34 the amount "RM10.00";
(q) by substituting for the words "The same duty as a
conveyance on sale for a consideration equal to the value
of the property of greater value." in item 43 the following:
"(a) In the case specified in
See that
section 20A
section
(b) In any other case :
RM10.00.";
25
Finance (No. 2)
(r) by inserting immediately after the words "See Bond" in
item 47 the words "(item 23)";
(s) (i) by substituting for sub sub-item 49(1)(a) the following:
"(a) Without fine or
When the lease is for a period
premium when
Not
Exceeding
Exceeding
the average rent
exceeding  one but not  three years
calculated for a
one year
exceeding
or for any
whole year
three years
indefinite
period
(i) Does not exceed
Nil
Nil
Nil
RM2,400
(ii) For every RM250 RM1.00
RM2.00
RM4.00.";
or part thereof in
excess of
RM2,400
(ii) b y substituting for the amount "RM5.00" in
sub sub-item 49(1)(d) the amount "RM10.00";
(iii) b y substituting for the amount "RM1.00" in
sub sub-item 49(1)(e) the amount "RM10.00";
(iv) by inserting immediately after the word "LEASE" in
sub-item 49(2) the words "OR AGREEMENT FOR LEASE";
and
(v) by substituting for the word "ten" in the Exemption
of item 49 the words "two hundred";
(t) by substituting for the amount "50 sen" in item 50 the
amount "RM2.00";
(u) by substituting for the amount "20 sen" in item 51 the
amount "RM1.00";
(v) by substituting for the words "The same duty as a deed."in
item 53 the amount "RM100.00";
(w) by substituting for the amount "RM10.00" in item 56 the
words "See Exchange";
(x) (i) by deleting sub sub-items 57(a)(i) and (ii); and
(ii) by inserting the amount "RM10.00" under the heading
of "Proper Stamp Duty" of sub-item 57(a);
26
ACT 274
Laws of Malaysia
(y)
(i) by substituting for sub-item 58(1) the following:
"(1) (a) Policy of Sea Insurance
including time policies or
policies for covering a
vessel or her machinery
or fittings whilst under
construction or repair or
o n trial, whether the
p e r i o d exceeds twelve
months or not  ...  ...
RM2.00
(b) For policies containing a
continuation
clause,
additional duty  ...  ...
RM2.00
NOTE--When a policy of sea insurance is drawn
in a set according to the custom of marine insurers
and one of the set is duly stamped, the other or
others of the set shall, unless issued or in some
manner negotiated apart from such duly stamped
policy, be exempt from duty; and, upon proof of
the loss or destruction of a duly stamped policy
forming one of a set, any other policy of the set
which has not been issued or in any manner negotiated
apart from such lost or destroyed policy may although
unstamped, be admitted in evidence to prove the
contents of such lost or destroyed policy.";
(ii) b y substituting for the amount "RM1.00" in
sub-item 58(2) the amount "RM2.00";
(iii) b y substituting for the amount "50 sen" in
sub-item 58(3) the amount "RM2.00";
(iv) by deleting the words "For every RM1,000 insured
or part thereof" in sub-item 58(4);
(v) by substituting for the amount "10 sen" in sub-item
58(4) the amount "RM10.00";
(vi) by substituting for the amount "25 sen" in sub-item
58(5) the amount "RM2.00";
(vii) by substituting for the amounts "RM1.00" and "50
sen" in sub-item 58(6) the amount "RM2.00";
(viii) b y substituting for the amount "RM1.00" in
sub-item 58(7) the amount "RM2.00";
27
Finance (No. 2)
(ix) by deleting the words "For every RM1,000 insured
or part thereof" in sub-item 58(8); and
(x) by substituting for the amount "20 sen" in sub-item
58(8) the amount "RM2.00";
(z) in item 59:
(i) by substituting for the word "OF" appearing after
the word "POWER" the word "OR";
(ii) by inserting the amount "RM10.00" under the heading
of `Proper Stamp Duty';
(iii) by deleting the whole of sub-items (a), (b) and (c);
and
(iv) by inserting immediately after item 59 the following
new Exemption:
"
Exemption
For the sole purpose of appointing or authorizing
any person to vote as proxy at a meeting of a
Company or Association.";
(aa) by substituting for the words "20 sen for every RM100
or for every fractional part of RM100 of the amount or
value of the money for which the note is made" in
sub-item 60(b) the amount "RM1.00";
(bb) in item 65:
(i) by inserting the words "same duty as charge itself
but subject to a maximum of RM10.00." under the
heading of `Proper Stamp Duty' and
(ii) by deleting the whole of sub-items (a), (b) and (c);
(cc)
(i) by adding immediately after the word "RELEASE" in
item 66 the words "OR RENUNCIATION"; and
(ii) b y substituting for the amount "RM5.00" in
sub-item 66(d) the amount "RM10.00";
(dd) in item 69:
(i) by inserting immediately after the word "SETTLEMENT"
the words "being an Instrument of Settlement or
Agreement for a Settlement";
28
ACT 274
Laws of Malaysia
(ii) by inserting the words "See section 16 and subitem
32: Conveyance" under the heading `Proper Stamp
Duty'; and
(iii) by deleting sub-items (1) and (2);
(ee) by substituting for the amount "RM1.00" in item 70 the
amount "RM2.00";
(ff) by substituting for the words "SHARE WARRANT issued
under the provisions of the Companies Act 1965, or STOCK
CERTIFICATE to bearer" in item 71 the words "SHARE WARRANT
OR STOCK CERTIFICATE to bearer";
(gg) by substituting for the amount "RM5.00" appearing twice
in item 75 the amount "RM10.00"; and
(hh) by substituting for the amount "50 sen" in item 78 the
amount "RM3.00".
Amendment of Second Schedule
31.
The Second Schedule to the Ordinance is amended--
(a) by inserting immediately after item 1 the following new
item 1A:
"1A. AFFIDAVIT, STATUTORY
The Commissioner
DECLARATION, etc.--No. 2
for Oaths."; and
(b) by deleting items 4, 7, 10, 11, 13 and 16.
Amendment of Third Schedule
32.  The Third Schedule to the Ordinance is amended by deleting
item 6.
CHAPTER VI
AMENDMENTS TO THE STAMP ORDINANCE (SARAWAK)
Commencement of amendments to the Stamp Ordinance
(Sarawak)
33.  The provisions of this Chapter shall come into force on
1 January 1983.
29
Finance (No. 2)
New sections 3A and 3B
34.  The Stamp Ordinance (Sarawak), which in this Chapter is
referred to as "the Ordinance", is amended by inserting immediately
after section 3 the following new sections 3A and 3B:
"Loan for the purposes of small business
3A.  Every instrument being the only or principal or primary
security for the payment or repayment of a loan to a small
business shall be indorsed by an authority approved by the
Minister of Finance that the loan was made for the purposes
of a small business.
Exchange of real property
3B.  Where upon the exchange of any real property for any
other real property or upon the partition or division of any
real property, any consideration is paid or given, or agreed
to be paid or given, for equality--
(a) the principal or only instrument whereby the exchange
or partition or division is effected is to be charged
with the same ad valorem duty as a conveyance on
sale for the consideration, and with that duty only;
and
(b) where in any such case there are several instruments
for completing the title of either party, the principal
instrument is to be ascertained and the other instruments
are to be charged with a duty of fifty sen only.".
Amendment of First Schedule
35. The First Schedule to the Ordinance is amended--
(a) by deleting items 1, 8, 9, 11, 14, 15, 16, 26, 28, 33, 44,
54, 55, 62, 63, 72, 79 and 80;
(b) in item 2:
(i) by substituting for the amount "RM2.00" the amount
"RM5.00";
(ii) by deleting the word "or" appearing at the end of
Exemption (vii);
30
ACT 274
Laws of Malaysia
(iii) by substituting for the full stop at the end of
Exemption (viii) the word "; or"; and
(iv) by inserting immediately after Exemption (viii) the
following new Exemption (ix):
"(ix) pursuant to any statute requirement or in
a c c o r d a n c e with the directions of any
Government Department or Agency.";
(c) in item 4:
(i) by substituting for the amount "RM1.00" the amount
"RM3.00"; and
(ii) by substituting for the amount "RM50" wherever
it appears the amount "RM300";
(d) by inserting immediately after the words " See
Conveyance on Sale" in item 5 the words "and sections
19 and 22";
(e) by substituting for the amount "RM5.00" in item 6 the
amount "RM10.00";
(f) by substituting for the words "The same as a deed" in
item 10 the amount "RM100.00";
(g) by substituting for the amount "25 sen" in item 17 the
amount "RM1.00";
(h) by substituting for the amount "RM5.00" in item 18 the
amount "RM1.00";
(i)
(i) by substituting for the amount "RM5.00" in sub
sub-item 22(2)(a) the amount "RM100";
(ii) by deleting the words "for every RM100 and also
for any fractional part of RM100 of the annuity" in
sub-item 22(3); and
(iii) by substituting for the amount "25 sen" in sub-item
22(3) the amount "RM10.00";
(j) by substituting for the words "When the penalty or amount
secured does not exceed RM500 the same duty as a
charge or mortgage for the penalty or amount secured.
When the penalty or amount exceeds RM500, RM2" in
item 23 the amount "RM10.00";
31
Finance (No. 2)
(k) in item 24:
(i) by inserting immediately after the words "obtaining
letters of administration" the words "where the estate
exceeds RM50,000";
(ii) by deleting sub-items (a) and (b);
(iii) by inserting the amount "RM10.00" under the heading
`Proper Stamp Duty'; and
(iv) by substituting for the amount "RM10,000" in the
Exemption the amount "RM50,000";
(l) by substituting for the amount "RM5.00" in item 25 the
amount "RM10.00";
(m)
(i) by renumbering sub-item 27(a) as sub sub-item
27(a)(i);
(ii) by inserting after sub sub-item 27 (i) the following
(a)
new sub sub-item 27(a)(ii):
"(ii) Being instruments under section 3A--
Not exceeding RM250,000
of the aggregate loans in
a calendar year  ...  ...
RM1.00 for
every RM1,000
or fractional
part thereof.
For
each
additional
RM1,000
or
part
thereof  ...
...
...
RM5.00.";
(iii) by substituting for the words "One-quarter" in
sub-item 27(e) the words "Two-fifths"; and
(iv) b y substituting for the amount "RM2.00" in
sub-item 27(g) the amount "RM10.00";
(n) by substituting for the amount "10" in item 29 the amount
"15";
(o) in item 32:
(i) by deleting sub sub-items (b)(i) and (ii);
(ii) by inserting the amount "30 sen" under the heading
`Proper Stamp Duty' in sub-item (b);
(iii) by substituting for the amount "RM5.00" in sub
sub-items (e)(ii), (f) and (i) the amount "RM10.00";
and
32
ACT 274
Laws of Malaysia
(iv) by deleting sub-item (a) of the Exemptions and
renumbering subitems (b) and (c) as sub-items (a)
and (b) respectively;
(p) by substituting for the amount "RM2.00" appearing twice
in item 34 the amount "RM10.00"
(q) by substituting for the words "The same duty as a
conveyance on sale for a consideration equal to the value
of the property of greater value." in item 43 the following:
"(a) In the case specified in
See that
section 20A:
section
(b) In any other case:
RM10.00.";
(r) by inserting immediately after the words "See Bond" in
item 47 the words "(item 23)";
(s) (i) by substituting for sub sub-item 49(1)(a) the following:
"(a) Without fine or
When the lease is for a period
premium when
the average rent
Not
Exceeding
Exceeding
calculated for a
exceeding
one but
three
whole year
one year
not
years or
exceeding
for any
three
indefinite
years
period
(i) Does not exceed
Nil
Nil
Nil
RM2,400
(ii) For every RM250 RM1.00
RM2.00
RM4.00.";
or part thereof in
excess of
RM2,400
(ii) by substituting for the amount "RM5.00" in sub
sub-item 49(1)(d) the amount "RM10.00";
(iii) by substituting for the amount "RM1.00" in sub
sub-item 49(1)(e) the amount "RM10.00";
(iv) by inserting immediately after the word "LEASE" in
sub-item 49(2) the words "OR AGREEMENT FOR LEASE";
and
(v) by substituting for the word "ten" in the Exemption
of item 49 the words "two hundred";
33
Finance (No. 2)
(t) by substituting for the amount "50 sen" in item 50 the
amount "RM2.00";
(u) by substituting for the amount "20 sen" in item 51 the
amount "RM1.00";
(v) by substituting for the words "The same duty as a deed."
in item 53 the amount "RM100.00";
(w) by substituting for the amount "RM5.00" wherever it
appears in sub sub-items 53A (ii), (iii) and (v) the amount
"RM10.00";
(x) by substituting for the amount "RM10.00" in item 56 the
words "See Exchange";
(y)
(i) by deleting sub sub-items 57(a)(i) and (ii); and
(ii) by inserting the amount "RM10.00" under the heading
of "Proper Stamp Duty" of sub-item 57(a);
(z) (i) by substituting for item 58(1) the following:
"(1) (a) Policy of Sea Insurance
including time policies or
p o l i c i e s for covering a
vessel or her machinery or
f i t t i n g s  whilst  under
construction or repair or
on trial, whether the period
exceeds twelve months or
not ...  ...  ...
...
RM2.00
(b) For policies containing a
continuation
clause,
additional duty ...  ...
RM2.00
NOTE--When a policy of sea insurance is drawn
in a set according to the custom of marine insurers
and one of the set is duly stamped, the other or
others of the set shall, unless issued or in some
manner negotiated apart from such duly stamped
policy, be exempt from duty; and, upon proof of
the loss or destruction of a duly stamped policy
forming one of a set, any other policy of the set
which has not been issued or in any manner negotiated
apart from such lost or destroyed policy may although
unstamped, be admitted in evidence to prove the
contents of such lost or destroyed policy.";
34
ACT 274
Laws of Malaysia
(ii) b y substituting for the amount "RM1.00" in
sub-item 58(2) the amount "RM2.00";
(iii) by substituting for the amount "50 sen" in sub-item
58(3) the amount "RM2.00";
(iv) by deleting the words "For every RM1,000 insured
or part thereof" in sub-item 58(4);
(v) by substituting for the amount "10 sen" in sub-item
58(4) the amount "RM10.00";
(vi) by substituting for the amount "25 sen" in sub-item
58(5) the amount "RM2.00";
(vii) by substituting for the amounts "RM1.00" and "50
sen" in sub-item 58(6) the amount "RM2.00";
(viii) b y substituting for the amount "RM1.00" in
sub-item 58(7) the amount "RM2.00";
(ix) by deleting the words "For every RM1,000 insured
or part thereof" in sub-item 58(8); and
(x) by substituting for the amount "20 sen" in sub-item
58(8) the amount "RM2.00";
(aa) in item 59:
(i) by substituting for the word "OF" after the word
"POWER" the word "OR";
(ii) by inserting the amount "RM10.00" under the heading
of "Proper Stamp Duty";
(iii) by deleting the whole of sub-items (a), (b) and (c);
and
(iv) by inserting immediately after item 59 the following
new Exemption:
"
Exemption
For the sole purpose of appointing or authorizing
any person to vote as proxy at a meeting of a
Company or Association.";
(bb) by substituting for the words "20 sen for every RM100
or for every fractional part of RM100 of the amount or
value of the money for which the note is made" in
sub-item 60(b) the amount "RM1.00";
35
Finance (No. 2)
(cc) in item 65:
(i) by inserting the words "same duty as charge itself
but subject to a maximum of RM10.00" under the
heading of `Proper Stamp Duty'; and
(ii) by deleting the whole of sub-items (a), (b) and (c);
(dd) (i) by adding immediately after the word "RELEASE" in
item 66 the words "OR RENUNCIATION"; and
(ii) by substituting for the amount "RM5.00" in sub-
item 66(d) the amount "RM10.00";
(ee) in item 69:
(i) by inserting immediately after the word "SETTLEMENT"
the words "being an Instrument of Settlement or
Agreement for a Settlement";
(ii) by inserting the words "See item 32: Conveyance"
under the heading "Proper Stamp Duty"; and
(iii) by deleting sub-items (1) and (2);
(ff) by substituting for the amount "RM1.00" in item 70 the
amount "RM2.00";
(gg) by substituting for the words "SHARE WARRANT issued
under the provisions of the Companies Act 1965, or STOCK
CERTIFICATE to bearer" in item 71 the words "SHARE WARRANT
OR STOCK CERTIFICATE to bearer";
(hh) by substituting for the amount "RM5.00" appearing twice
in item 75 the amount "RM10.00"; and
(ii) by substituting for the amount "50 sen" in item 78 the
amount "RM3.00".
Amendment of Second Schedule
36.  The Second Schedule to the Ordinance is amended by deleting
the words "Copy or Extract .................. the person requisitioning
the same.".
36
ACT 274
Laws of Malaysia
CHAPTER VII
AMENDMENTS TO THE SALES TAX ACT 1972
Commencement of amendment to the Sales Tax Act 1972
37.  The provisions of this Chapter shall come into force on
1 January 1983.
Amendment of section 31
38.  Section 31 of the Sales Tax Act 1972, which in this Chapter
is referred to as "the principal Act", is amended by deleting the
words "who has been exempted from the provisions of subsection
13(1)".
New section 31A
39.  The principal Act is amended by inserting immediately after
section 31 the following new section 31A:
"Application for deduction by licensed manufacturer
31A. (1) A licensed manufacturer may apply to the Director
General, in the return furnished by him in accordance with
section 19, for the deduction of such amount of sales tax
paid in respect of goods purchased by him during the taxable
period to which the return relates.
(2) The Director General shall allow the deduction applied
under subsection (1) subject to such conditions as may be
prescribed.".
37
Finance (No. 2)
LAWS OF MALAYSIA
Act 274
FINANCE (NO. 2) ACT 1982
LIST OF AMENDMENTS
Amending law
Short title
In force from
Act 160
Malaysian Currency (Ringgit)
29-08-1975
Act 1975
38
ACT 274
Laws of Malaysia
LAWS OF MALAYSIA
Act 274
FINANCE (NO. 2) ACT 1982
LIST OF SECTIONS AMENDED
Section
Amending authority
In force from
Throughout the Act
Act 160
29-08-1975
DICETAK OLEH
PERCETAKAN NASIONAL MALAYSIA BERHAD,
KUALA LUMPUR
BAGI PIHAK DAN DENGAN PERINTAH KERAJAAN MALAYSIA
39
Finance (No. 2)