Section 65A — PETROLEUM (INCOME TAX) ACT 1967

(a)

arrangements specified in the order have been made by the

Government with the government of any territory outside

Malaysia with a view to affording relief from double taxation in relation to tax under this Act and any foreign tax of that territory; and

(b)

it is expedient that those arrangements shall have effect, then, so long as the order remains in force, those arrangements shall have effect in relation to tax under this Act notwithstanding anything in any written law.

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(1A)

For the purposes of this section, arrangements made with a view to affording relief from double taxation include any arrangements which modify the effect of arrangements so made.

(2)

Where any arrangements have effect by virtue of this section, section 71 shall not prevent the disclosure to a duly authorized servant or agent of the government with which the arrangements have been made of such information as is required to be disclosed under the arrangements.

(3)

Any arrangements to which effect is given under this section may include—

(a)

provision for relief from tax with respect to any person of any particular class;

(b)

provision as to income which is not itself subject to double taxation; and

(c)

provision for exempting from tax any person or any person of any particular class or of exempting from tax (wholly or in part) the income of any person or any person of any particular class.

(4)

For the purposes of this section, “foreign tax” means any tax on income derived from petroleum operations chargeable or imposed by or under the laws of a territory outside Malaysia.

(5)

Any order made under this section shall be laid before the House of Representatives.

International obligations

65AA. (1) Notwithstanding section 65A, if the Minister by statutory order declares that—

(a)

arrangements specified in the order have been made by the

Government to give effect to Malaysia’s international

Petroleum (Income Tax)

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obligations in relation to tax under this Act or other taxes of every kind under any written law; and

(b)

it is expedient that those arrangements should have effect, then, so long as the order remains in force, notwithstanding anything in any written law, those arrangements shall have effect in relation to tax under this Act or other taxes of every kind under any written law.

(2)

Where any arrangements have effect by virtue of this section, section 71 shall not prevent the disclosure to a duly authorized servant or agent of the government with which the arrangements have been made of such information as is required to be disclosed under the arrangements.

(3)

Any order made under this section shall be laid before the

Dewan Rakyat.

Exemption to give effect to agreements in overlapping areas