education about malaysian taxation principles and practice Part 3

4.0 Person
Section 2 of the Act defines 'person' to include a company, a body of persons and a corporation sole.
'Body of person' is further defined as an unincorporated body of person (not being a company), including a Hindu joint family but excluding a partnership. In the case of partnership, it is the individual partner who will be assessed to tax. Examples of body of persons would be trust, club, trade association, co-operation societies, etc.

The use of word 'includes' in s 2 suggests that the definition of person is not exhaustive. The categories of person are not limited to what is defined in the Act.

It is crucial to establish the concept of 'person' because :
(i) such person will be the chargeable person assessable to tax on his income derived from such taxable activities; and
(ii) the tax rate applicable to each category of chargeable person varies, some are taxed at flat rate while other are taxed at scaled rates or reduced rates.