Section 6
Amendment of section 12
Section 12 of the principal Act is amended by inserting after subsection (2) the following subsections:
“(3) Notwithstanding subsections (1) and (2), the income of a person from a business that is attributable to a place of business in Malaysia shall be deemed to be the gross income of that person derived from Malaysia from the business.
(4)
For the purpose of subsection (3), a place of business includes —
(a)
a place of management;
(b)
a branch;
(c)
an office;
(d)
a factory;
(e)
a workshop;
(f)
a warehouse;
(g)
a building site, or a construction, an installation or an assembly project;
(h)
a farm or plantation; and
(i)
a mine, an oil or gas well, a quarry or any other place of extraction of natural resources, and without prejudice to the generality of the foregoing, a person shall be deemed to have a place of business in Malaysia if that person—
(i)
carries on supervisory activities in connection with a building or work site, or a construction, an installation or an assembly project; or
Finance 13
(ii)
has another person acting on his behalf who —
(A)
habitually concludes contracts, or habitually plays the principal role leading to the conclusion of contracts that are routinely concluded without material modification;
(B)
habitually maintains a stock of goods or merchandise in that place of business from which such person delivers goods or merchandise; or
(C)
regularly fills orders on his behalf.”.