Malaysia legislation
Section 9
Section 9
The principal Act is amended—
(a)
by inserting immediately after section 60A the following new section 60B:
“Offshore insurance: chargeable income, reduced rate and exempt dividend 60B. (1) (a) Where an insurer carries on offshore insurance business in conjunction with other insurance businesses, the part of the chargeable income for a year of assessment which is attributable to that offshore insurance business shall consist of an amount which bears the same proportion to the chargeable income for that year of assessment of the insurer as the part of the aggregate income which relates to the offshore insurance business bears to the whole of the aggregate income for that year of assessment from all sources of the insurer; and
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(b)
the amount arrived at under paragraph (a) shall be treated as the chargeable income for a year of assessment of an insurer from offshore insurance business for the purposes of paragraph 3 of Part I of Schedule 1.
(2)
As soon as any amount of chargeable income from the offshore insurance business of an insurer (being a company) resident for the basis year for a year of assessment has been subject to income tax at the rate of five per cent—
(a)
the net amount of that income (after deduction of such tax) shall be credited to an account (that account and company being referred to as the exempt account and the relevant company respectively); and
(b)
paragraph 5 (except subparagraph (1) thereof) and paragraph 6 of Schedule 7A shall apply as if any reference in those paragraphs to any income exempted or which has become exempt under paragraph 3 were a reference to income credited to the exempt account.”; and
(b)
by renumbering the existing section 60B as section 60c.
Amendment of section 103 10.
Section 103 of the principal Act is amended by substituting for subsection (5A) the following new subsection (5A):
“(5A) Where the tax due and payable has been increased under subsection (4) or (5) any balance remaining unpaid upon expiration of sixty days from the date of such increase shall without any further notice being served be further increased by a sum equal to five per cent of the balance unpaid, and that sum shall be recoverable as if it were tax due and payable under this Act.”
Amendment of Schedule 1 11.
Part I of Schedule 1 to the principal Act is amended by inserting immediately after the words “inward re-insurance business”
appearing in paragraph 3 the words “or offshore insurance business”.
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Amendment of Schedule 6 12.
Paragraph 33 of Part I of Schedule 6 to the principal Act is amended—
(a)
by deleting the words “carrying on the business of banking”
appearing after the words “for a year of assessment”;
(b)
by inserting immediately after the words “credited by any person” the words “(whether the same person or not)”; and
(c)
by substituting for the full stop at the end of that paragraph a colon and by inserting immediately below that paragraph the following new proviso:
“Provided that the exemption under this paragraph shall not apply to interest paid or credited on funds required for the purposes of maintaining net working funds as prescribed by the Central Bank of Malaysia in pursuance of section 14 of the *Banking Act 1973 [Act 102]. ”