eKTP 18

Tax Treatment on Controlled Transactions and Transactions Between Relatives
Part 1


Prior to Year Assessment (YA) 2015

Income is treated as being received by a person when the person is

  1. entitled to receive any gross income (other than business and dividend) and

  2. deemed obtainable on demand.

Income from a Malaysian source such as employment, rental etc. for a relevant YA would only be taxed in the year of receipt by revising the tax return of the relevant YA.

Effective from YA 2015

Transactions between:
a) Persons one of whom has control over the other
b) Individuals who are relatives of each other
c) Persons both of whom are controlled by some other persons shall be treated as gross income in the following basis period.

How to declare the income?

Accordingly to Budget Dialogue, It should be declared as “Chargeable income of the preceding year not declared” in the following basis period.

Stay tune for the next e-KTP for the main definition of key words like “Person”, “Individual”, “Relative”, “Transactions” and “Control”.