Income Tax (Exemption) (No.2) Order [P.U.(A) 160/2011]

For the period from year of assessment (YA) 2007 to YA 2009, an individual, unit trust or listed close-end fund is exempted from payment of income tax in respect of any gains or profits received from the investment in Islamic securities, other than convertible loan stock, which are issued in accordance with the principles of Mudharabah, Musyarakah, Ijarah, Istisna’ or any other principle approved by the Shariah Advisory Council established by the Securities Commission.

Withholding tax under Section 109 of the Income Tax Act 1967 (ITA) will not apply to any gains or profits derived by a non-resident individual, unit trust or listed close-end fund.