The Order, which shall have effect from the year of assessment 2013 and subsequent years of assessment, exempts the Labuan International Commodity Trading Company from the provision of subsection 7(1) of the Labuan Business Activity Tax Act 1990. This Order shall not apply to the Labuan International Commodity Trading Company which carries on solely the trading of physical and related derivative instruments of liquefied natural gas, for the first three years of its operation.
Labuan International Commodity Trading Company” means a Labuan company which (a) is incorporated or registered under the Labuan Companies Act 1990, (b) is licensed under section 92 of the Labuan Financial Services and Securities Act 2010, (c) maintains a registered office in Labuan but is allowed to establish its operational office anywhere in Malaysia, and (d) undertakes a qualifying activity under the Global Incentives for Trading programme.
Global Incentives for Trading means a programme of incentives for the Labuan International Commodity Trading Company to use Malaysia as their international trading base to undertake qualifying activity.
Qualifying Activity means the trading of physical and related derivative instruments of (a) petroleum and petroleum-related products including liquefied natural gas; (b) minerals; (c) agriculture products; (d) refined raw materials; (e) chemicals; and (f) base minerals, in any currency other than Ringgit.