Section 17
Amendment of section 2
The Labuan Offshore Business Activity Tax Act 1990, which in this Chapter is referred to as the “principal Act”, is amended in subsection 2(1)—
(a)
by substituting for the proviso to the definition of “offshore business activity” the following proviso:
“Provided that—
(a)
in relation to an offshore company carrying on an offshore banking business, such activity may be carried on with residents and, where permitted under subsection 20(2) of the Offshore Banking
Act 1990 [Act 443], transactions may be carried on in Malaysian currency;
(b)
in relation to an offshore company carrying on an offshore insurance business, such activity may be
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Finance (No. 2)
carried on with residents and, where permitted under subsection 21(2) of the Offshore Insurance
Act 1990 [Act 444], transactions may be carried on in Malaysian currency;
(c)
in relation to the holding of investments by an offshore company in a domestic company, such holding may be in Malaysian currency;
(d)
in relation to an offshore company carrying on a money-broking business, such activity may be carried on with residents where permitted under paragraph 7(3)(a) of the Offshore Companies Act 1990 [Act 441] ;
(e)
in relation to an offshore company carrying on an offshore leasing business, such activity may be carried on with residents where permitted under paragraph 7(3)(a) of the Offshore Companies Act 1990; or
(f)
the Minister may approve the carrying on of such activity with residents or such transactions in
Malaysian currency;”; and
(b)
by inserting after the definition of “resident” the following definition:
‘ “shipping operations” means the transportation of passengers or cargo by sea or the letting out on charter of ships on a voyage or time charter basis;’.