SCOPE OF CHARGE

•Section 3 ITA 1967:

  “ Subject to and in accordance with this Act, a tax to be known as income tax shall be charged for each YA upon the income of any person accruing in or derived from Malaysia or received in Malaysia from outside Malaysia.”

•Therefore, income tax liability arises when:

  i. the transaction is ‘income’ in nature   and   such   income is accrued in or   derived from Malaysia; or

  ii. the transaction is ‘income’ in nature   and   it is received in Malaysia from   outside Malaysia

•Income tax would be imposed by reference to a YA upon a person’s income. Such person is known as chargeable person.