Malaysia legislation
Section 2
of PERINTAH CUKAI PENDAPATAN (PERUNTUKAN-PERUNTUKAN PERALIHAN) 1990
Seksyen 2
Paragraph 28 of Schedule 9 to the Income Tax Act 1967 is amended—
(b)
by inserting immediately after subparagraph (2), the following new subparagraphs (3), (4) and (5):
“(3) For the avoidance of doubt it is declared that—
(a)
any reference in section 108 to a company entitled to deduct tax from dividends includes a company entitled to declare itself a resident of Malaysia under paragraph 3 of Article VII of the Double Taxation Relief (Singapore) Order 1968; and
(b)
any reference in section 108 (8) to repayment of tax includes payment of the Sabah credit, Sarawak credit or West Malaysian credit, as the case may be, which payment shall be deemed to have been made in the year of assessment in which the company became entitled to the credit.
(4)
Where—
(a)
a company, which is entitled to a Sabah credit, Sarawak credit or West Malaysian credit, is a non-resident company the payment of the Sabah credit, Sarawak credit or West Malaysian credit, as the case may be, to the company; or
(b)
any of the provisos to paragraphs 69 (1), 85 (1) and 109 (1) applies to a non-resident company, the payment to a transferee company of the Sabah credit, Sarawak credit or West Malaysian credit, as the case may be, to which the non-resident company would have been entitled but for that proviso, shall not be deemed to be a repayment of tax under section 108 (8).
(5)
For the purposes of subparagraph (4), a nonresident company refers to a company which is not resident in the basis year for the year of assessment 1967 but does not include a company which is entitled to declare itself a resident of Malaysia under paragraph 3 of Article VII of the Double Taxation Relief (Singapore) Order 1968.".