KUALA LUMPUR (Nov 19): The Labuan Business Activity Tax (Amendment) Bill 2024, tabled in Parliament on Tuesday, proposes significant amendments to tax regulations for Labuan entities, including extending the profit statement submission period from three months to seven months.

The bill, presented by Deputy Finance Minister Lim Hui Yung for its first reading in the Dewan Rakyat, will amend the Labuan Business Activity Tax Act 1990 (Act 445) and introduce a self-assessment system under Clause 4, which will replace Section 5 of Act 445.

According to the blue book distributed in Parliament, the proposed amendments include changes to the assessment year basis under Section 6, which will transition from using the previous year’s basis to the current year’s basis.

The bill also allows for the electronic submission of documents to the director general, enabling digital or electronic delivery.

Another notable amendment involves expanding the scope of taxation under Clause 2, by revising the definition of "Labuan trading activities" and removing the definitions of "shipping operations" and "domestic companies".

The amendments are scheduled to come into effect on Jan 1, 2025, and will apply to the assessment year 2025.

Lim is expected to present the bill for a second reading during the current parliamentary session.

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Uploaded by Liza Shireen Koshy