Malaysia legislation
Section 4
Section 4
Section 2 of the Income Tax Act 1967, which in this Chapter is referred to as “the principal Act”, is amended—
(a)
by substituting for the interpretation of “approved loan”
in subsection (1), the following:
‘ “approved loan” means any loan or credit made to the Government, State Government (including any loan or credit made to a person other than the Government or State Government where the loan or credit is guaranteed by the Government or State Government), local authority or statutory body by a person not resident in Malaysia where the loan or credit agreement was executed in Malaysia or where the loan or credit agreement was executed outside Malaysia with the prior approval of the Minister;’;
(b)
by deleting the interpretation of “long-term loan” in subsection (1);
(c)
by deleting the interpretation of “shareholders’ funds” in subsection (1); and
(d)
by inserting immediately after subsection (6), the following new subsection (7):
“(7)
Any reference in this Act to interest shall apply, mutatis mutandis, to gains or profits received and expenses incurred, in lieu of interest, in transactions conducted in accordance with the Syariah.”.
Amendment of section 3A