Section 56
Amendment of section 2b
The Labuan Business Activity Tax Act 1990, which is referred to as the “principal Act” in this Chapter, is amended in section 2b—
(a)
in subsection (1), by substituting for paragraph (b)
the following paragraph:
“(b) shall, for the purposes of the Labuan business activity—
(i)
in relation to a Labuan trading activity—
(A)
have an adequate number of full time employees in Labuan; and
(B)
have an adequate amount of annual operating expenditure in Labuan, as prescribed by the Minister by regulations made under this Act; and
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(ii)
in relation to a Labuan non-trading activity—
(A)
have an adequate number of full time employees in Labuan;
(B)
have an adequate amount of annual operating expenditure in Labuan;
and
(C)
comply with any condition in relation to control and management in Labuan, as prescribed by the Minister by regulations made under this Act.”; and
(b)
by inserting after subsection (1a) the following subsection:
“(1b) For the purposes of subsection (1a)—
(a)
the chargeable profits shall be the net profits as reflected in the audited accounts in respect of such Labuan business activity of the Labuan entity for the basis period for that year of assessment; and
(b)
sections 6, 6a, 6b, 6c, 6d, 8 and 8a shall apply, with necessary modifications.”.