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The assessment and payment positions for each
category of taxpayers resulting from the tax waiver on income derived from
basis year 1999 are as follows:-
(a) Employees
Based on 3 categories of employees who are subject to STD:
(i) Employees who commenced employment before 1 January 1995;
(ii) Employees who commenced employment after 1 January 1995;
(iii) Employees in Sabah and Sarawak.
Category (i)
For employees under this category, deductions under STD will continue in the
year 1999 for payment of tax on 1998 income. Employees are required to
declare their 1998 income in the Return Form for Year of Assessment 1999
which will be issued in the early part of 1999, to be assessed for the Year
of Assessment 1999. They will not be taxed on income arising in the year
1999 in year 2000. Beginning from year 2000, they will pay tax based on
current year income (year 2000).
Category (ii) and (iii)
For employees under these categories, they are exempted from deduction of
tax under STD in the year 1999 because they have already paid tax on their
1998 income through STD in the year 1998. However, such employees are still
required to declare their income for 1998 by submitting Return Form for Year
of Assessment 1999 to determine their actual tax liability. STD will
recommence in respect of these categories in the year 2000.
(b) Business
(c) Others (co-operative, associations, trusts,
deceased estates)
For categories (b) and (c) above, they will continue to pay income tax
through the installment scheme as arranged for in 1999 on the income for
basis period 1998. They are required to declare income for basis period 1998
for the Year of Assessment 1999. These categories will continue to pay tax
in year 2000 but on current year income.
These groups of taxpayers will also not be assessed on income for basis
period 1999 in the year 2000. However, they will be required to complete
Return Form for Year of Assessment 2000 which will be issued in 2000, for
declaration of business profits/losses for basis period 1999, to enable the
claim for losses to be carried forward to be determined.
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