12. Insertion of new section 40B in the principal enactment

The following new section is hereby inserted immediately after section 40A of the principal enactment and shall have effect as section 40B of that enactment:—

40B (1) Where the taxable income for any year of assessment commencing on or after

April 1, 2009 of any qualified individual, includes any profits from employment under any qualified person in foreign currency

“Rate of tax on qualified profits of qualified individuals.

(hereinafter in this section referred to as

“qualified profits”) and the rate of income tax payable on a part of such taxable income

(hereinafter in this section referred to as the

“relevant part of the taxable income”) exceeds twenty per centum, then in regard to the relevant part of the taxable income, the tax payable shall, subject to the provisions of subsection (2), be computed as follows:—

where the relevant part of the taxable income exceeds the amount of such qualified profits—

the tax payable on such portion of the relevant part of the taxable income as is equal to the amount of such qualified profits, shall be computed at the rate of twenty per centum; and

the tax payable on the balance of the relevant part of the taxable income, shall be computed according to such of the rates above twenty per centum, as are applicable thereto under the First Schedule to this Act; or

where such relevant part of the taxable income does not exceed the amount of the qualified profits, the tax payable on the entirety of the qualified part of the taxable income shall be computed at the rate of twenty per centum.

The provisions of subsection (1) shall not apply unless the qualified person referred to in that subsection certifies, that the aggregate of the qualified profits paid in any year of assessment to all qualified individuals employed by such qualified person, does not exceed the amount of the total earnings of such qualified person in foreign currency, the profits and income attributable to which are exempt from income tax under paragraph (ddd) of section 13 or would have been exempt under that paragraph had such qualified person not entered into any agreement with the Board of

For the purposes of this section—

“qualified individual” means an individual who is an employee of a qualified person, and who provides in the course of such employment any service, being a service rendered in the course of any profession or vocation as specified by the Commissioner-General under paragraph (ddd) of section 13;

“qualified person” means any person or partnership, the entirety or a part of whose profits and income are exempt from income tax under paragraph (ddd)