Malaysia legislation
Section 4
Section 4
New section 3b
The principal Act is amended by inserting after section 3a the following section:
“Residence 3b. For the purposes of the double taxation arrangements effected under section 132 of the Income Tax Act 1967—
(a)
a Labuan entity carrying on a business or businesses is resident in Malaysia for the basis period for a year of assessment if at any time during that basis period the management and control of its business or of any one of its businesses, as the case may be, are exercised in Malaysia; and
Labuan Business Activity Tax (Amendment)
(b)
any other Labuan entity is resident in Malaysia for the basis period for a year of assessment if at any time during that basis period the management and control of its affairs are exercised in Malaysia by its directors, partners, trustees or other controlling authority.”.
Amendment of section 4