The Tax Terminology Glossary

means the amount ascertained by deducting from a person’s gross income from that source for that period all outgoings and expenses that were wholly and exclusively incurred to produce that gross income during the relevant period, including but not limited to, rent payable and expenses incurred for repairing the premises or fixtures for the purposes of producing gross income.  

Pursuant to Section 33 of the Income Tax Act 1967

means when the allowable expenses exceed the gross income of a business. 

Pursuant to Section 40 of the Income Tax Act 1967

means the total amount of statutory income a person earns in a given assessment year, subject to certain deductions and additions. It consists of: 

1. The aggregate of statutory income from business sources for that year, after any applicable deductions.
2. The aggregate of statutory income from other non-business sources.
3. Any additions falling to be made for the relevant year.

Pursuant to Section 43(1) of the Income Tax Act 1967

means the basis period of a company. It usually means the financial year ending in a particular Year of Assessment. The basis period of an individual means the basis year of that year of assessment. 

Pursuant to Section 21 of the Income Tax Act 1967. 

means the calendar year coinciding with a year of assessment shall constitute the basis year for that year of assessment. 

Pursuant to Section 20 of the Income Tax Act 1967

means a profit from the sale of property or an investment.

means where a chargeable asset is disposed of, the disposal price exceeds the acquisition price. 

Pursuant to Section 7(1) of the Real Property Gains Tax Act 1976 

means income in respect of – 

(a) gains or profits from a business, for whatever period of time carried on; 

(b) gains or profits from the disposal of capital asset; 

(c) gains or profits from an employment; 

(d) dividends, interest or discounts; 

(e) rents, royalties or premium; 

(f) pensions, annuities or other periodical payments not falling under any of the foregoing paragraphs;  

(g) gains or profits not falling under any of the foregoing paragraphs. 

Pursuant to Section 4 of the Income Tax Act 1967. 

means a transaction between two parties in which the creditor supplies money, goods, services, or securities in return for a promised future payment by the debtor.

means a record of the money taken from a bank account.

means money or assets taken from a business account for personal use. 

means the money earned

means any gain other than profit or gain chargeable with or exempted from income tax according to income tax law; or in the context of unit trusts, gains that are not considered as income under the income tax law. 

Pursuant to Section 2 of the Real Property Gains Tax Act 1976 

means the amount of income a person earns before any deductions are made.

means the money earned or received by an individual or business. It may be generated from different sources, including:

(a) wages;

(b) interest;

(c) investments;

(d) profits; and

(e) pension distributions.

means the outlay of money usually for income or profit.

means the return on an investment, which is the total gain or loss over a period of time.

means the income that a company earns from activities unrelated to its core business operations, such as interest income, dividends, or gains from asset sales.

means the money generated from a company’s core business operations. 

means an individual or a body that has to make payment.

means an individual or body who receives the payment. 

means payments made periodically to a person upon retirement from service.

means the financial gain when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity in question.

means including any sum paid for the use or occupation of any premises or part thereof or for the hire of anything. 

Pursuant to Section 2 of the Income Tax Act 1967

means the total income generated from normal business operations.

means a contractual payment by a person as consideration for or derived from the use of assets belonging to another person. 

Pursuant to Section 2 of the Income Tax Act 1967

means, in the context related to a company, including stocks other than debenture stocks.

means the income subject to taxation pursuant to tax laws and regulations.

means the amount of income subject to tax.

means the year in which the tax on the income earned in the basis period is assessed and paid.