Section 36

Every company which is resident in Brunei Darussalam shall be entitled to deduct from the amount of any dividend paid to any shareholder, tax at the rate paid or payable by the company, double taxation

Income Tax 72

relief being left out of account, on the chargeable income of the year of assessment in which the dividend is declared payable:

Provided that, where tax is not paid or payable by the company on the whole income out of which the dividend is paid, the deduction shall be restricted to that portion of the dividend which is paid out of income on which tax is paid or payable by the company.

Every such company shall, upon payment of a dividend, whether tax is deducted therefrom or not, furnish each shareholder with a certificate setting forth the amount of the dividend paid to that shareholder and the amount of tax which the company has deducted or is entitled to deduct in respect of that dividend, and also, where the tax paid or payable by the company is affected by double taxation relief, the rate of the tax paid or payable by the company after taking double taxation relief into account.

In this section, “double taxation relief” means any credit for foreign income tax which is allowable against income tax chargeable under this Act by virtue of arrangements made under section 41, and any relief allowable under section 39 (omitted) or 40, including any credit or relief which has been taken into account in determining the net Brunei Darussalam rate application to any dividends received by the company.