Commencement of amendments to the Petroleum (Income Tax)
(1) Except for paragraph 34(b), this Chapter shall be deemed to have come into force on 23 January 1991. (2) Paragraph 34(b) shall have effect for the year of assessment 1994 and subsequent years of assessment.
Amendment of section 2
The Petroleum (Income Tax) Act 1967, which is referred to as the “principal Act” in this Chapter, is amended in section 2— (a) in the definition of “chargeable person” in subsection (1), by inserting after subparagraph (i) the following subparagraph: “(i) Malaysia-Thailand Joint Authority,”; (b) in the definition of “chargeable person” in subsection (1), by renumbering the existing subparagraph (ii) as subparagraph (iii); (c) by inserting after the definition of “entertainment” in subsection (1) the following definition: “Joint Development Area” has the meaning assigned thereto by the Malaysia-Thailand Joint Authority Act 1990 [Act 440];’; (d) in the definition of “petroleum agreement” in subsection (1), by inserting after the words “Petroleum Nasional Berhad” the words “or the Malaysia-Thailand Joint Authority”; (e) in subsection (2), by inserting after the words “Petroleum Nasional Berhad” the words “or the Malaysia-Thailand Joint Authority”; (f) in subparagraph (4)(a)(ii), by inserting after the words “Petroleum Nasional Berhad” the words “or the Malaysia- Thailand Joint Authority”; and (g) by inserting after subsection (4) the following subsection: “(5) For the purposes of this Act, the date of production in relation to a petroleum agreement with the Malaysia- Thailand Joint Authority means the date of first commercial production of petroleum under that agreement.”.
Amendment of section 4
Section 4 of the principal Act is amended in subsection (3), by inserting after the words “Petroleum Nasional Berhad” the words “or the Malaysia-Thailand Joint Authority”.
Amendment of section 13 A
Section 13A of the principal Act is amended in subsection (1), by inserting after the words “Petroleum Nasional Berhad” wherever appearing therein and in the marginal note the words “or the Malaysia-Thailand Joint Authority”.
Amendment of section 23
Section 23 of the principal Act is amended— (a) by renumbering the existing section 23 as subsection 23(1); (b) by substituting for the words “forty-five” in the renumbered subsection 23 (1) the word “forty”; and (c) by inserting after the renumbered subsection (1) the following subsections: “(2) Notwithstanding subsection (1), the chargeable tax for any year of assessment of a chargeable person on income derived from petroleum operations in the Joint Development Area shall be an amount equal to— (a) zero per cent of the chargeable income ascertained from income for any of the first eight years of production; or (b) ten per cent of the chargeable income ascertained from income for any of the next seven years of production; or (c) twenty per cent of the chargeable income ascertained from income for any subsequent year of production: Provided that where the chargeable income ascertained relates to income from two production periods, that chargeable income shall be apportioned to each of those periods (the apportionment being made in the proportion that the number of months of the relevant production period bears to the number of months of that basis period) and the chargeable tax shall be arrived at by applying the rate applicable to each of the relevant production periods to the chargeable income so apportioned. (3) For the purposes of subsection (2), the “production period” means the number of years of production referred to in paragraph (2)(a), (b) or (c) as the case may be.”.
New section 65B
The principal Act is amended by inserting after section 65A the following section: “Exemption to give effect to agreements in overlapping areas
(1) The Minister may, by statutory order, exempt from tax any chargeable person or exempt from tax the income (wholly or in part) of any chargeable person to give effect to any agreement or arrangement made by the Government with the government of any territory outside Malaysia for the joint exploration and exploitation of petroleum in overlapping areas. (2) Any order made under subsection (1) shall be laid before the House of Representatives. (3) Nothing in subsection (1) shall absolve or be deemed to have absolved the said chargeable person from complying with any requirement to submit any return or statement of accounts or to furnish any other information under the provisions of this Act in respect of the income exempted under this section.”. Amendment of Schedule 2 36. Schedule 2 to the principal Act is amended— (a) in subparagraph 41(b), by inserting after the words “Petroleum Nasional Berhad” the words “or the Malaysia- Thailand Joint Authority”; and (b) in paragraph 48A, by inserting after the words “Petroleum Nasional Berhad” the words “or the Malaysia-Thailand Joint Authority”.
Provisions on this page are reproduced verbatim from official open data. See the attribution line.
Text as at 1 January 2006 (LOM reprint); amendments made after that date may not be incorporated. Read the official text ↗
Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).