Section 9
of Labuan Business Activity Tax Act 1990
Section 9
Notwithstanding subsection 3(1), the profit of a Labuan entity carrying on a Labuan business activity which is a Labuan non-trading activity for the basis period for a year of assessment shall not be charged to tax under this Act for that year of assessment.
(2)
For the avoidance of doubt, the profit of a Labuan entity carrying on a Labuan business activity which is a Labuan non-trading activity referred to in subsection (1) shall not include any income derived from royalty and other income derived from an intellectual
Laws of Malaysia ACT 445
20
property right if it is receivable as consideration for the commercial exploitation of that right.
(3)
Any income derived from intellectual property right referred to in subsection (2) is subject to tax under the Income Tax Act 1967.
(4)
In this section, “intellectual property right” has the same meaning assigned to it under subsection 4(5).