CHAPTER 75:01 - Inland Revenue Division

Corporation Tax Act Mac 1
Vol. 1
in relation to any mortgage loan that it buys from an approved mortgage
company. Amended by Act No.18 of 1989
(2) Notwithstanding subparagraph (1) or paragraph 4A(1) that relate to the
taxes with respect to which the profits of the Home Mortgage Bank or the
debenture holders of the Home Mortgage Bank are exempt, the terms of
the agreement mentioned in subparagraph (1) may limit the taxes from
which the Home Mortgage Bank or the debenture holders of the Home
Mortgage Bank are exempt.
(3) Notwithstanding the termination of the agreement between the Home
Mortgage Bank and the Government referred to in subparagraph (1), the
exemptions granted to the Home Mortgage Bank by reason of that
subparagraph shall apply in respect of any mortgage loan granted by an
approved mortgage company which the Minister certifies was sold to the
Home Mortgage Bank prior to the date of termination.
2. An approved mortgage company that is exempt from corporation tax
under paragraph 1(1) may, within a period commencing on the date of the
mortgage or loan agreement and ending two years after the date on which
the repayment of the principal sum borrowed is completed, where the
income is in respect of interest and service charge exempt from tax under
section 42(2)(d) of the Income Tax Act, distribute sums not exceeding the
exempt interest and service charge to the members of the company and
these sums when so distributed are exempt from income or corporation tax
in the hands of the members of the company. Amended by Act No.18 of 1989
3. (1) In this paragraph, "company" means a company limited by shares
within the meaning of the Companies Ordinance.
Ch.31 No.1
(2) A company that is in receipt of income or profits that are exempt from
corporation tax under section 42(2)(b), (c) or (e) of the Income Tax Act
may -
(a) within twelve years after the date of completion of construction
of the newly constructed house, if the premiums and rents would
be exempt from corporation tax under the said section 42(2)(b);
(b) within two years after the date of sale of the newly constructed
house, if the gains or profits would be exempt from corporation tax
under the said section 42(2)(c); or
(c) within a period commencing on the date of the mortgage and
ending two years after the date on which the repayment of the principal
sum borrowed is completed, if the interest and service charge
would be exempt from corporation tax under the said section
42(2)(e),
BIR Mac Edition 91/01 Page 238