Determination of Basis Periods
Section 21
of Income Tax Act 1967
General
· Where the accounts are made up for 12 months ending in 2003 on 31 December in a basis year, the basis period for the Year of Assessment 2003 is the accounting period ending 31.12.2003
| · |
For example:
|
Accounts made up for 12 months not ending on 31 December
· Where the accounts are made up for 12 months ending in 2003 on a date other than 31 December in a basis year, the basis period for the Year of Assessment 2003 is from the 1st day of accounting period to 31.12.2003.
· For example:
|
Accounting Period ending in 2003 |
Basis Period for Y/A 2003 |
Duration of Basis Period |
|
01.02.2002 to 31.01.2003 |
01.02.2002 to 31.12.2003 |
23 months |
|
01.05.2002 to 30.04.2003 |
01.05.2002 to 31.12.2003 |
20 months |
|
01.12.2002 to 30.11.2003 |
01.12.2002 to 31.12.2003 |
13 months |
Change of accounting date in 2002
· Where there is a change of accounting date in 2002, the basis period for the Year of Assessment 2003 is from the 1st day after end of the basis period for the Year of Assessment 2002 to 31.12.2003.
· For example:
|
Accounting Period |
Duration |
Y/A |
Basis Period |
Duration |
|
01.07.2000 to 30.06.2001 |
12 months |
2001 |
01.07.2000 to 30.06.2001 |
12 months |
|
01.07.2001 to 31.12.2002 |
18 months |
2002 |
01.07.2001 to 30.06.2002 |
12 months |
|
01.01.2003 to 31.12.2003 |
12 months |
2003 |
01.07.2002 to 31.12.2003 |
18 months |
Section 21
of Income Tax Act 1967
New business commencing in 2002
· Where there is a new business commencing in 2002 and the accounts are made up for 12 months ending in 2003, the basis period for the Year of Assessment 2003 is from the 1st day of accounting period to 31.12.2003.
· Where there is a new business commencing in 2002 and the accounts are made up for more than or less than 12 months ending on a date other than 31 December, the basis period for the Year of Assessment 2002 is from the 1st day of accounting period to 31.12.2002 while the basis period for the Year of Assessment 2003 is from 01.01.2003 to 31.12.2003.
· For example:
|
Accounting Period |
Basis Period f or Y/A 2002 |
Basis Period for Y/A 2003 |
|
01.02.2002 to 31.01.2003 |
|
01.02.2002 to 31.12.2003 |
|
01.12.2002 to 30.11.2003 |
|
01.12.2002 to 30.12.2003 |
|
01.05.2002 to 30.11.2002 |
01.12.2002 to 31.12.2002 |
01.01.2003 to 31.12.2003 |
Source : Inland Revenue Board, Malaysia
