Malaysia legislation
Section 23
Section 23
(a)
such chargeable tax shall be computed on the chargeable income ascertained for the period commencing on or after 1 April 1975, which overlaps the basis period for that year of assessment; and
(b)
the provisions of this section shall not apply to the chargeable income ascertained for the period ending on 31 March 1975, which overlaps the basis period for that year of assessment.
(2)
Notwithstanding subsection (1), the chargeable tax for any year of assessment of a chargeable person on income derived from petroleum operations in the Joint Development Area shall be an amount equal to—
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(a)
zero per cent of the chargeable income ascertained from income for any of the first eight years of production;
(b)
ten per cent of the chargeable income ascertained from income for any of the next seven years of production; or
(c)
twenty per cent of the chargeable income ascertained from income for any subsequent year of production:
Provided that where the chargeable income ascertained relates to income from two production periods, that chargeable income shall be apportioned to each of those periods (the apportionment being made in the proportion that the number of months of the relevant production period bears to the number of months of that basis period) and the chargeable tax shall be arrived at by applying the rate applicable to each of the relevant production periods to the chargeable income so apportioned.
(3)
For the purposes of subsection (2), the “production period”
means the number of years of production referred to in paragraph (2)(a), (b) or (c), as the case may be.