INCOME TAX (EXEMPTION) (NO. 16) ORDER 1991

INCOME TAX (EXEMPTION) (NO. 16) ORDER 1991

 

PU (A) 161

 

IN exercise of the power, conferred by paragraph (b) of subsction (3) of section 127 of the Income Tax Act 1967, the Minister makes the following order :

 

PARAGRAPH 1         CITATION AND COMMENCEMENT

 

1   This Order may be cited as the Income Tax (Exemption) (no. 16) Order 1991 and shall have effect for the year of assessment 1991 and subsequent years of assessment.

 

PARAGRAPH 2         EXEMPTION FROM TAX

 

2   The Minister exempts from tax -

(a)      dividends received by an offshore company;

(b)      dividends received from an offshore company which are paid, credited or distributed out of, income derived from an offshore business activity or, income exempt from tax;

(c)      distributions received from an offshore trust by the beneficiaries;

(d)      royalties received from an offshore company by, a non-resident person or, another offshore company;

(e)      interest received from an offshore company by, a non-resident person (other than interest accruing to a business carried on by a non-resident person in Malaysia where that non-resident person is licensed to carry on a business under the Banking and Financial Institutions Act 1989, the Islamic Banking Act 1983, the Insurance Act 1963 or the Takaful Act 1984) or, another offshore company;

(f)       interest received from an offshore company by a resident person (other than a person licensed to carry on a business under the Banking and Financial Institution Act 1989, the Islamic Banking Act 1983, the Insurance Act 1963 or the Takaful Act 1984); and

(g)      amounts received from an offshore company by a non-resident person or another offshore company, in consideration of services, advice or assistance specified in paragraphs (i) and (ii) of section 4A.

 

PARAGRAPH 3         EXEMPTION FROM SPECIFIC PROVISIONS

 

3   The Minister exempts an offshore company from the provisions of -

(a)        section 109 in respect of royalties and interest exempt under paragraphs 2(d) and (e);

(b)        section 109B in respect of payments exempt under paragraph 2(g); and

(c)        section 109C in respect of interest exempt under paragraph 2(f).

 

PARAGRAPH 4         INTERPRETATION

 

4.         For the purposes of this Order, the words öffshore trust” shall have the meaning assigned thereto by the Labuan Offshore Business Activity Tax Act 1990.

 

PARAGRAPH 5         REVOCATION

 

5.         The Income Tax (Exemption) (No. 21) Order 1990 published on the 27th September, 1990 is revoked.

 

Made the 3rd April 1991.