Public Ruling No. 4/2001 - Basis Period For A Non-business Source (Individuals & Persons Other Than Companies)

A person is chargeable to income tax in respect of all his sources of income for a year of assessment. 

The income from a source is determined in relation to the basis period for a year of assessment.

For a non-business source, the basis year for a year of assessment is the basis period for that year of assessment.

Example: 

An individual receives 2 dividends, dated 05.01.2001 and 28.12.2001, on 10.01.2001 and 02.01.2002, respectively. 

The basis year for the year of assessment 2001 is the calendar year 2001. Both the dividends received in respect of the calendar year 2001 should therefore be taxed for the year of assessment 2001.

As a concession, a co-operative which has both business and non-business sources may choose that the basis period for its business source be the basis period for all of its non-business sources. If it does so, it should also apply that same treatment consistently thereafter for all its non-business sources.

Example: 

A co-operative closes its accounts on 30 June each year. It has income from 2 sources: business and rent. 

The basis period for the year of assessment 2001 for the business source is the accounting year 01.07.2000 to 30.06.2001. 

The basis period for the year of assessment 2001 for the non-business source (rent) is year ending 31.12.2001. 

However, the co-operative may choose the basis period of its business source, i.e. 01.07.2000 to 30.06.2001, as the basis period for its non-business source.

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Edited by: 浪子

Source: http://lampiran1.hasil.gov.my/pdf/pdfam/PR4_2001.pdf