Malaysia legislation
Section 60c
Seksyen 60c
(2)
The chargeable income in relation to the source consisting of the provision of fund management services to foreign investors for a year of assessment shall be the statutory income from that source reduced by any deduction falling to be made pursuant to section 43(2) relating to that source.
(3)
The chargeable income in relation to the source or sources other than the source consisting of the provision of fund management services to foreign investors for a year of assessment shall be the statutory income from that source or the aggregate of the statutory income from each of those sources, as the case may be, reduced by any deductions falling to be made pursuant to sections 43(2) and 44(1):
Provided that in so making the deductions under sections 43(2) and 44(1), no regard shall be had to the adjusted loss, if any, from the source consisting of the provision of fund management services to foreign investors.
(4)
The chargeable income of a foreign fund management company, resident in Malaysia for the basis year for a year of assessment in relation to the source consisting of the provision of fund management services to foreign investors, after deduction of the tax thereon, shall be credited to an account to be kept by that company
(that account and that company being referred to as the "exempt account" and the "relevant company" respectively).
(5)
Paragraphs 5 and 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 of that Schedule were a reference to income credited to the exempt account of the relevant company under subsection (4).
(6)
For the purposes of this section—
"foreign fund management company" means a company—
(a)
incorporated in Malaysia and licensed under the Securities Industry Act 1983; and
(b)
where the issued share capital is wholly foreign owned and provides fund management services to foreign investors only; or
(ii)
where the issued share capital is in majority foreign owned and provides fund management services to foreign and local investors;
"foreign investors"—
(a)
in relation to an individual means individuals who are not resident and not citizens of Malaysia;
(b)
in relation to a company means companies where the entire issued share capital is beneficially owned, directly or indirectly by persons who are not resident and not citizens of Malaysia; and
(c)
in relation to a trust fund means trust funds where the entire interest in the
Kewangan fund is beneficially held, directly or indirectly by foreign investors, where—
(i)
the fund is created outside Malaysia; and
(ii)
the trustees of the fund are not resident and not citizens of Malaysia;
"local investors" are individuals, companies or trust funds that are not foreign investors.".