Malaysia legislation
Section 53
Section 53
The Labuan Business Activity Tax Act 1990, which is referred to as the “principal Act” in this Chapter, is amended in section 2b by inserting after subsection (1b) the following subsections:
“(1c) The net profits referred to in paragraph (1b)(a) shall not include any income derived from royalty and other income derived from an intellectual property right if it is receivable as consideration for the commercial exploitation of that right.
(1d)
Any income derived from intellectual property right referred to in subsection (1c) is subject to tax under the Income
Tax Act 1967.
(1e)
In this section, “intellectual property right” has the same meaning assigned to it under subsection 4(5).”.
Amendment of section 8