Section 69
of Investment Incentives Order, 2001
Section 69
(1)
The total income of an international trading company, in respect of its trade or business which includes its relevant export sales, shall be ascertained (after making such adjustments as may be necessary in consequence of any direction given under section 66), for any accounting period during its tax relief period in accordance with the provisions of the
Income Tax Act, and, in particular, the following provisions shall apply –
(a)
income from any commissions and other non-trading sources shall be excluded and separately assessed;
(b)
the allowances provided for in sections 13, 14, 15, 16, 17, and 18 (where applicable) of the Income Tax Act shall be taken into account, and where in any year of assessment full effect cannot, by reason of an insufficiency of profits for that year of assessment, be given to those allowances, section 20 of the Income Tax Act shall apply;
Incorporating amendments until S 5/2011
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(c)
the amount of any unabsorbed allowances in respect of any year of assessment immediately preceding the tax relief period which would otherwise be available under section 20 of the Income Tax Act shall be taken into account;
(d)
section 30 of the Income Tax Act shall apply in respect of any loss incurred prior to or during its tax relief period;
(e)
any unabsorbed allowances granted under sections 13, 14, 16 and 17 of the Income Tax Act and losses incurred in respect of any distinct trade or business shall be brought into the computation;
(f)
any unabsorbed allowances granted under sections 13, 14, 16 and 17 of the Income Tax Act and losses incurred in respect of the trade or business referred to in this subsection shall, during the tax relief period, only be deducted against the income derived from that trade or business;
(g)
subject to sections 20 and 30 of the Income Tax Act, any allowances and losses which remain unabsorbed at the end of the tax relief period shall be available for deduction in its post tax relief period.
(2)
The amount of the export income of an international trading company which will qualify for the relief for any year of assessment shall be deemed to be such amount which bears to the total income ascertained under subsection (1) the same proportion as the excess of the total value of the relevant export sales over the relevant base export value bears to the total amount of the sums received or receivable in respect of its total sales; and subject to section 70, one-half of the amount of the export income which qualifies for the relief as ascertained in this subsection shall not form part of the chargeable income of the international trading company for that year of assessment and shall be exempt from tax.
(3)
The relevant base export value referred to in subsection (2) shall be –
(a)
for the basis period for the first year of assessment within the tax relief period of an international trading company, a sum equal to one-third of the total value of the relevant export sales during the 3 years immediately preceding the date of its application to be an international trading company; and
(b)
for the basis period for any subsequent year of assessment within the tax relief period, a sum equal to one-third of the total value of the relevant export sales during the 3 qualifying years immediately preceding that basis period.
Incorporating amendments until S 5/2011
(Cleancopy) NANI/H.AFIF/fiqah _ as of 11th March 2020
48
BLUV as at 16th February 2011
(4)
For the purposes of paragraph (b) of subsection (3), a “qualifying year” is a year in which the export sales –
(a)
in respect of qualifying manufactured goods or Brunei Darussalam domestic produce exceed $3 million; and
(b)
in respect of qualifying commodities exceed $5 million.
(5)
Where an international trading company –
(a)
was engaged in the trading of qualifying manufactured goods, Brunei
Darussalam domestic produce or qualifying commodities for less than 3 years immediately preceding its application under this Part;
(b)
during its tax relief period has acquired any sales in respect of qualifying manufactured goods, Brunei Darussalam domestic produce or qualifying commodities from any person or has acquired the beneficial interest, directly or indirectly, of any company engaged in similar trade or business; or
(c)
has less than 3 qualifying years for the purpose of determining its relevant base export value under paragraph (b) of subsection (3), the Minister may specify such other relevant base export value for one or more basis periods as he thinks fit having regard to the circumstances of the case.
Conditions for relief.