60F. Investment holding company.

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Tamat
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: 60F. Investment holding company.
:
Rujukan Perundangan\Akta Cukai Pendapatan 1967 - Seksyen\PART III - ASCERTAINMENT
OF CHARGEABLE INCOME\Chapter 8 - Special cases\
Akta Cukai Pendapatan 1967
(Akta 53)
Pindaan Sehingga Akta 719 Tahun 2011
Tarikh Keluaran :
Title : Income Tax Act
Part : PART III - ASCERTAINMENT OF CHARGEABLE
INCOME
Chapter : Chapter 8 - Special cases
Section : 60F. Investment holding company.
60F. (1) Where an investment holding company is
resident for the basis year for a year of assessment
there shall be deducted in arriving at the total income
before any deduction falling to be made under section
44(1)(c) an amount in respect of expenses incurred by
that company in the basis period for that year of
assessment, which amount shall be determined in
accordance with the formula-
Investment
holding
company.
Am. Act 644
A X B
4C
where
A is the total of the permitted expenses incurred for
that basis period reduced by any receipt of a similar
kind;
B is the gross income consisting of dividend,
interest and rent chargeable to tax for that basis period;
and
C is the aggregate of the gross income consisting of
dividend (whether exempt or not), interest and rent, and
gains made from the realisation of investments for that
basis period:
Provided that-
(a) the amount of deduction to be made shall not

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exceed five per cent of the gross income
consisting of dividend, interest and rent for that
basis period; and
(b) where, by reason of an absence or insufficiency
of aggregate income for that year of assessment,
effect cannot be, given or cannot be given in full to
any deduction falling to be made to the investment
holding company under this section for that year,
that deduction which has not been so made shall
not be made to the investment holding company
for any subsequent year of assessment.
(1A) Notwithstanding any other provision of this
Act, where in any year of assessment income of an
investment holding company consists of -
(a) income from the holding of investment, it shall
not be treated as income from a source consisting
of a business; or
(b) income other than income from the holding of
investment, it shall be treated as gains or profits
under paragraph 4(f).
(1B) If it is shown that it has been established as
between the Director General and the company for any
tax purposes that the company is an investment holding
company for the basis period for any year of assessment
it shall be presumed until the contrary is proved that the
company is an investment holding company for the
purpose of this Act for the basis period for every
subsequent year of assessment.
(1C) This section shall not apply to an investment
holding company referred to in section 60FA.
History
Paragraph 60F(1A), 1(B) and 1(C) are inserted by Act
644 of 2005 s16(a), shall have effect for the year of
assessment 2006 and subsequent years of assessment.
(2) In this section -
"business of holding of an investment" means
business of letting of property where a company in any
year of assessment provides any maintenance or
support services in respect of the property.
History
The definition of "business of holding of an investment"

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is inserted by s18(b), Act 661 of 2006 and shall have
effect for for the year of assessment 2006 and
subsequent years of assessment.
“dividend” is deemed to include income
distributed by a unit trust;
History
The definition of "dividend" is inserted by s13, Act 719 of
2011 and shall have effect for the year assessment 2011
and subsequent years of assessment
"investment holding company" means a company
whose activities consist mainly in the holding of
investments and not less than eighty per cent of its
gross income other than gross income from a source
consisting of a business of holding of an investment
(whether exempt or not) is derived therefrom;
History
Subsection 60F(2) is amended by s18(a), Act 661 of
2006 by inserting after the words "gross income" the
words "other than gross income from a source consisting
of a business of holding of an investment". The
amendment shall have effect for for the year of
assessment 2006 and subsequent years of assessment.
The definition of "investment holding company" is
substituted by Act 644 s16(b), shall effect for the year of
assessment 2006 and subsequent years of assessment.
The definition formerly reads as follows :
"investment holding company" means a company whose
activities consist wholly in the making of investments
and whose income is derived therefrom;
"permitted expenses" means expenses incurred
by an investment holding company in respect of-
(a) directors' fees;
(b) wages, salaries and allowances;
(c) management fees;
(d) secretarial, audit and accounting fees,
telephone charges, printing and stationery costs
and postage; and
(e) rent and other expenses incidental to the

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History
maintenance of an office, which are not deductible
under section 33(1).
Section 60F inserted by Act 497 of 1993 s5, shall have
effect for the year of assessment 1993 and subsequent
years of assessment.