RMCD releases revised guides on record keeping and transfer of business as a going concern, 10 January 2017

The Royal Malaysian Customs Department (RMCD) has revised the following specific guides: • Guide on Tax Invoice and Records Keeping (revised as at 6 January 2017) The abovementioned Guide has been revised to include the following new paragraphs: • Paragraph 61 — Invoicing zero-rate o

RMCD releases revised guide on valuation, 19 January 2017

The Royal Malaysian Customs Department (RMCD) has released a revised Guide on Valuation (as at 18 January 2017). The salient amendments to the Guide are as follows: • Paragraph 43 and Example 19 — Amended the valuation formula in respect of a supply where consideration is partly in money and

RMCD aims for a GST collection of RM40b–RM42b, 23 January 2017

The Royal Malaysian Customs Department (RMCD) targets to collect between RM40b and RM42b in GST for 2017, according to its Director General. He also informed that reforms have been made to improve the corporate governance of the GST system and that it will focus on online businesses that have not

Releases from the RMCD — Revised Guides updated, 05 January 2017

The Royal Malaysian Customs Department (RMCD) has revised the following Guides in its portal: Specific Guides • Input Tax Credit The Guide on Input Tax Credit as at 13 December 2016 is withdrawn and replaced https://www.viagrapascherfr.com/viagra-feminin-avis-soft/ by the Guide on Input

National GST Conference 2017, 13 January 2017

The National GST Conference 2017 Managing the GST Ecosystem will be held on 28 February 2017 and 1 March 2017 at the Kuala Lumpur Convention Centre. This conference is jointly organised by the Royal Malaysian Customs Department and Chartered Tax Institute of Malaysia. Kindly visit the RMCD websit

MOF refunds tax penalty to Karyon, 04 January 2017

The Ministry of Finance (MOF) has agreed to refund the sales tax penalty of RM531,732 imposed on Karyon Industries Bhd’s unit Allbright Industries (M) Sdn Bhd (AISB), and that any further appeal would not be considered by the MOF. The Customs Department had requested AISB, in April 2016, for th

MOF: No change to tax exemption status of religious institutions, 12 January 2017

The Second Finance Minister, Inland Revenue Board (IRB) Chief Executive Officer, representatives from religious institutions and senior officers from the Ministry of Finance (MOF) met on 9 January 2017 to clarify the amendment to para 13(1) of Sch 6 of the Income Tax Act 1967. The MOF has clarified

MOF: IRB can meet its 2016 tax collection target of RM115b, 28 October 2016

The Ministry of Finance (MOF) is confident that the Inland Revenue Board (IRB) is able to meet its direct tax collection target of RM115b for 2016 despite the uncertain economic conditions, as the target takes into consideration the lower global oil prices and foreign exchange rates. The IRB Chief E

Malaysia releases orders on stamp duty, 06 January 2017

Stamp Duty (Remission) Order 2016 The abovementioned Order provides remission from stamp duty chargeable in respect of purchase of one unit of residential property that is not more than RM500,000, subject to certain conditions. The amount remitted depends on the value of the residential property

Malaysia releases legislation on CbCR and exchange of financial account information, 04 January 2017

Income Tax (Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information) Order 2016 The abovementioned Order provides the arrangements made by the Government of Malaysia and other governments that have signed the Multilateral Competent Authority Agreement on

Malaysia and China sign Exchange of Notes to DTA, 17 January 2017

Malaysia and China has signed an Exchange of Notes to the Double Taxation Avoidance Agreement (DTA) on 1 November 2016 in Beijing. The Exchange of Notes lists the institutions under para (5)(a)(iv) and (b)(iii) of Art 11 (Interest) of the DTA being institutions wholly-owned by the respective governm

MACC and IRB to collaborate to fight corruption, 04 January 2017

The Malaysian Anti-Corruption Commission (MACC) and the Inland Revenue Board (IRB) will collaborate to curb corruption, abuse of power and tax evasion by seeking out those involved in corruption, failed to declare their income or tried to avoid paying income tax. MACC said that cases being invest

IRB uploads new version of Forms EA, EC, E and CP 8D, 04January 2017

The Inland Revenue Board (IRB) made the following announcements: 1. The IRB has uploaded the 2016 version of Forms EA, EC, E and CP 8D in its portal as an early notification to employers. 2. Employers shall furnish Form CP 8D to the IRB via: i) Together with Form E ii) Via e-Data Praisi, or ii

IRB updates email address for CRS enquiries, 24 January 2017

Enquiries regarding the Common Reporting Standard (CRS) should be sent to crs@hasil.gov.my. Kindly visit the IRB website for further details. Source: IRB website, 19 cialisfrance24.com January 2017

IRB updates content on international taxation, 11 January 2017

Foreign Account Tax Compliance Act (FATCA) The content provides information regarding the FATCA which requires Financial Institutions outside United States (US) to provide information regarding their customers who are US persons to the US Internal Revenue Service. The content covers the follow

IRB studying mechanism to tax online businesses, 24 January 2017

The Treasury Secretary-General said that the Inland Revenue Board (IRB) is studying a mechanism to tax multinational companies that conduct digital or online businesses in respect of the revenue earned in Malaysia. He cited Uber as an example. The IRB expects to collect a total of RM127b in taxes

IRB sets up an Aggressive Tax Planning Division, 19 January 2017

The Inland Revenue Board has set up an https://www.viagrapascherfr.com/generique-viagra-pas-cher/ Aggressive Tax Planning Division under the Special Task Department as part of its exercise to curb tax leakages and evasion. Source: The Star Online, 18 January 2017

IRB issues a notification on errors that renders an income tax return incomplete, 12 January 2017

The Inland Revenue Board (IRB) has issued a notification that lists down errors that render an income tax return incomplete. An incomplete tax return which is unacceptable will not be processed and a notification letter will be issued. The penalty under s 112(3) of the Income Tax Act 1967 will be im

IRB includes public key for FATCA purposes, 25 January 2017

The Inland Revenue Board (IRB) has included the public key for Foreign Account Tax Compliance Act (FATCA) reporting purposes. The public key is a digital certificate that needs to be included in the FATCA transmission to the US tax authorities. The public key is valid for the period 27 January 20

IRB: Employers that are companies must e-File Form E, 24 January 2017

With effect from year of remuneration 2016, employers that are companies and Labuan companies are required to furnish Form E to the Inland Revenue Board (IRB) via e-Filing, pursuant to s 83(1B) of the Income Tax Act 1967 (ITA 1967). A submission of a manual Form E will be deemed not received for the

IRB clarifies the amendment made in respect of income received by religious institutions, 04 January 2017

The Inland Revenue Board (IRB) has released a media statement to clarify the amendment to para 13(1) (b) of Sch 6 of the Income Tax Act 1967 (ITA 1967), following the statement by the Chairman of Kuching Chinese Community Charitable Trust Board. The IRB clarifies that the amendment seeks to expli

IRB amends public ruling on residence status, 25 January 2017

The Inland Revenue Board has amended para 6.2.3(iii) of Public Ruling No 6/2011 Residence Status of Individuals to clarify that the allowed temporary absences of social visits not exceeding 14 days includes vacation to home country. Kindly visit the IRB website for further details. Source: IRB

GST collection of RM42b expected for 2017, 10 January 2017

The Deputy Finance Minister is of the opinion that the Government is able to collect RM42b in GST in 2017, compared to the RM41b last year, with full cooperation from all parties. Source: The Borneo Post, 10 January 2017

Filing programme for income tax return forms for YA 2016, 12 January 2017

Individuals The due date for individuals who do not carry on a business to submit their tax return is 30 April 2017. For individuals who carry on a business, the due date is 30 June 2017. Individuals who chose to e-File their tax returns are given a grace period of 15 days. Those who submit t

Country Heights appeals over tax arrears incurred during the Asian Financial Crisis, 04 January 2017

Country Heights Holdings Bhd (CHHB) is appealing against the Inland Revenue Board (IRB)’s decision regarding taxes of RM22,488,593.83 owed by one of its subsidiaries, Country Heights Sdn Bhd (CHSB). The Shah Alam High Court has allowed the IRB’s application for summary judgment together with

Fast food company pleaded guilty for failure to submit GST statements, 28 October 2016

Millennium Delight Sdn Bhd, a fast food company in Shah Alam was fined RM9,000 after pleading guilty to three counts of failing to submit the GST statement to the Customs Department. The company failed to submit the GST statements for the tax period of 1 April 2015 to 31 May 2015; 1 June 2015 to 31

Malaysia dropped by one spot in World Bank’s ease of doing business ranking, 28 October 2016

Malaysia has recorded to be at 23rd spot in World Bank’s ease of doing business ranking among 190 economies from 22nd position in 2015. The implementation of the GST partly contributed to the drop and had led to Malaysia reporting a weaker scoring in starting a business segment, with a ranking of

IRB denies releasing analysis on Budget 2017, 27 October 2016

The Inland Revenue Board (IRB) informs that it has not released an analysis on the Budget 2017 that has been circulating on online social media, especially on Facebook and WhatsApp and advised public to visit the IRB website and/or the Ministry of Finance website directly for correct information.

Company director fined RM34,500 for non-submission of tax returns, 27 October 2016

A director of a company was fined for failing to submit the company’s corporate tax returns for YAs 2001 to 2014. He now faces 13 charges under s 77A(1) and s 112(1) of theIncome Tax Act 1967. The director pleaded guilty to the charges. The Court imposed a fine of RM1,500 for each charge for YAs 2

Budget 2017 news, 27 October 2016

Incentives for SMEs could be more thought out Industry observers said that while it is good that Budget 2017 focused on the small and medium enterprises (SMEs), the incentives could be more thought out. An executive director from KPMG Tax Services Sdn Bhd pointed out that the reduction in tax

Budget 2017 news, 25 October 2016

Experts hail establishment of Collection Information Agency The establishment of the Collection Intelligence Arrangement under the Ministry of Finance, which will see the Inland Revenue Board, Royal Malaysian Customs Department and Companies Commission Malaysia sharing information, is expected to

IRB cautions regarding tax refund scam, 25 October 2016

The Inland Revenue Board informed that it does not send e-mails requesting for details to process an outstanding refund and advised the public to ignore such e-mails as well as not provide any personal information to any third party. Source: IRB website, 21 October 2016

Budget 2017 highlights: GST, 24 October 2016

Prime Minister Dato’ Seri Najib Razak tabled Malaysia’s Budget 2017 in Parliament on 21 October 2016, themed “Ensuring Unity and Economic Growth, Inclusive Prudent Spending, Wellbeing of the Rakyat”. The GST-related measures announced in his speech are as follows: Widening of GST relief f

Budget 2017 to focus on raising disposable income, 21 October 2016

Prime Minister Datuk Seri Najib Razak said that increasing Malaysians’ disposable income would be a main focus area in the Budget 2017. In addition to that, the Budget will focus on affordable housing, education and healthcare services. Other key areas include infrastructure, development, public t

BR1M: Friend or foe?, 19 October 2016

Ever since the launch of 1Malaysia People’s Aid (BR1M) in 2012, its allocation has expanded from RM2.6b (2012) to RM5.9b (2016). It began as a single payment of RM500 and RM250 to eligible households and single individuals respectively. 2016 sees the Government doling out amounts of RM1,050, RM1,0

Court rules in favour of IRB against Bandar Nusajaya Development Sdn Bhd, 19 October 2016

The Federal Court has ruled in favour of the Inland Revenue Board (IRB) against Bandar Nusajaya Development Sdn Bhd in respect of an additional assessment amounting to RM50.92m, which is now due and payable. The company had received the notice of additional assessment in 2011 in respect of YA 2006.

PM: Budget 2017 to boost Malaysian economy, 19 October 2016

Prime Minister Datuk Seri Najib Tun Razak announced that the Budget 2017 will include measures to bolster the Malaysian economy and also focus on industries that have been greatly affected by the global economy. Source: Bernama, 17 October 2016

IRB focuses on companies with Labuan businesses, 19 October 2016

The Inland Revenue Board (IRB) is now scrutinising Malaysian companies that have Labuan businesses. Tax consultants say that this is probably due to focus on Base Erosion and Profit Shifting, which has led the IRB to check if there are companies misusing Labuan’s preferential treatment. Compani

RMCD issues notification on imposition of compound for failure to make GST payment within a prescribed period, 19 October 2016 Click to open document in a brow

The Royal Malaysian Customs Department (RMCD) has announced an extension of time for registrants who still have outstanding tax in the year of 2015. They are given until 31 October 2016 to pay the outstanding amount or will be fined to a maximum amount of RM20,000 if they fail to make the payment.

First offence recorded in Perak for not submitting GST statements, 19 October 2016

Wong Kean Yik, the owner of Sun Yi Telecommunications Trading became the first person in Perak to be fined for failing to submit his GST statement in time. The offence under s 41(6) of the GST Act 2014 provides for a fine of not more than RM50,000 for each charge or a jail term not exceeding three y

IRB provides concession for specialist doctors, 18 October 2016

The Chartered Tax Institute of Malaysia (CTIM) met with the Inland Revenue Board (IRB) regarding the issues arising from the tax audit cases on specialist doctors. The Chartered Tax Institute of Malaysia (CTIM) met with the Inland Revenue Board (IRB) regarding the issues arising from the tax audi

Property players and experts’ Budget 2017 wish list, 18 October 2016

The Edge Malaysia interviewed some property players and experts regarding the measures that they hope to see implemented to help first-time house buyers and help boost the property market. Some of the more popular/salient tax-related suggestions include: • Increase the allocation in the Employe

Insurance association calls for higher insurance relief, 18 October 2016

The Life lnsurance Association of Malaysia hopes that the Government will increase the tax relief for medical and education insurance to RM6,000 and separate the tax relief for life insurance and Employees Provident Fund (EPF) in the Budget 2017. The tax relief of RM3,000 is insufficient as it ca

Budget 2017 news, 17 October 2016

Deputy Finance Minister: House ownership is a key focus area The Deputy Finance Minister acknowledged the issue of house ownership among the younger generation and it is expected to be one of the key focus areas of the Budget 2017. Other key focus areas would be assisting the needy, such as B40 g

Mobile shop owner pleads guilty for failing to submit GST statements, 06 October 2016

Wong Kean Yik, an owner of Sun Yi Telecommunication Trading was charged with eight charges over his failure to submit the GST statements for the period of May 2015 until December 2015 under s 41(1) of the GST Act 2014. He pleaded guilty to all charges. All offences fell under s 41(6) of the same Act

Online application of import duty exemption on machinery and equipment, and raw materials and components from 1 November 2016, 14 October 2016

With effect from 1 November 2016, all applications for import duty exemption that involve PC1, PC Services, PC2, PC2A, PC2-1, SPM1 and SPM2 need to be submitted online via jpc.online.mida.gov.my. Prior to the online submission, the applicant would need to obtain a Digital Certificate. The Malaysi

Budget 2017: Taking on the house ownership issue, 14 October 2016

Deloitte’s business tax partner has provided suggestions on how the Budget 2017 can tackle the home ownership issue. The current level of house building in the affordable segment is insufficient to meet demand. Apart from that, developers are finding it difficult to build affordable homes due to i

Budget 2017: Unlikely for gaming industry to face tax increase, 14 October 2016

It is unlikely that the gaming industry will face a tax increase as it may drive business to illegal number forecasting operators, according to Alliance DBS Research. This will lead to a lower tax revenue collection and also, the revenue gained from the tax hike may not have a material impact on the

SysArmy Sdn Bhd gets MSC status and pioneer status incentive, 14 October 2016

Systech Bhd’s 51%-owned unit SysArmy Sdn Bhd has been granted with a 10-year tax exemption, following the approval of its MSC status. Apart from that, it has also been granted the pioneer status incentive. Source: The Edge Markets, 12 October 2016

IRB issues RM22.8m claims over disposal of property by Idaman Harmoni, 14 October 2016

The Inland Revenue Board (IRB) has issued notices of assessment for additional taxes and penalties totalling RM22.8m to Idaman Harmoni Sdn Bhd (IHSB), a subsidiary of Mega First Corp Bhd. The notices of assessment were in respect of income tax for YA 2009 in relation to a joint venture between IH

Famous beauty entrepreneur charged for not paying GST amounting to RM4.2m, 14 October 2016

Beauty entrepreneur Datuk Seri Hasmiza Othman was charged at the Sessions Court for failing to pay the GST totaling more than RM4m. She was charged with 32 counts and pleaded not guilty for failure to make payments and producing statements for the taxable period between 1 April 2015 and 31 July 2016

Deputy Minister promises that GST rate will not be affected in Budget 2017, 05 October 2016

Deputy Finance Minister Datuk Othman Aziz confirmed that GST rate will not be affected in Budget 2017 which will be tabled on 21 October 2016. The GST rate will remain at 6% and is sufficient for the Government to manage the national economy and help the working class despite the tough challenges.

MOF grants special automatic approval for first time renewal of GST tax agent license, 05 October 2016

The Ministry of Finance (MOF) has agreed to grant automatic approval for all applications for first time GST tax agent licence renewal in the transition period up to 31 March 2020, vide their letter dated 29 September 2016. Tax agents are unable to meet the requirements for Continuing Professiona

Releases from the RMCD — Revised guide updated, 12 October 2016

The Royal Malaysian Customs Department (RMCD) has issued and revised the following guide in its portal: Specific Guides Employee Benefits The Guide on Employee Benefits as at 6 April 2016 is withdrawn and replaced by the Guide on Employee Benefits revised as at 29 September 2016. The a

Budget 2017 must focus on people’s well-being, 12 October 2016

An opinion piece by the director of the ASEAN Research Institute of Banking and Finance in Utara Malaysia University urging the Government to focus on the well-being of the people, especially in terms of food and housing, under the Budget 2017. As food prices are increasing more quickly than the

Micro-businesses hope to get an attention for incentives under Budget 2017, 12 October 2016

Under the Budget 2017 which will be tabled on 21 October 2016 by the Prime Minister, the micro-businesses are hoping to get an attention from the Government. This is because, according to the India Street Pedestrian Mall Management Committee Chairman Dato Wee Hong Seng, the current subsidies were mo

IRB issues public ruling on basis period for companies under liquidation, 11 October 2016

The Inland Revenue Board (IRB) has published a public ruling (PR) on “Basis Period for Companies under Liquidation” dated 7 October 2016 (PR No 7/2016), which aims to explain the determination of basis period for companies under liquidation. The PR covers the determination of the basis period

Budget 2017 needs to boost investment, employment and productivity, 10 October 2016

Malaysia’s drop in the rankings for global competitiveness, after a steady climb since 2012, indicates that stakeholders (ie Government, industry players and firms) need to focus on microeconomic reforms, pursue business transformation and improve growth foundations in a progressively competitive

Bandar Malaysia and TRX development: Are incentives necessary?, 10 October 2016

On 16 June 2016, the Prime Minister announced the following incentives for the master developer of Bandar Malaysia (IWH CREC Sdn Bhd) and its subsidiaries: • income tax exemption for 10 years • exemption from stamp duty, real property gains tax and withholding tax for eight years, and

Should Budget 2017 be election friendly?, 10 October 2016

The Budget 2017 will be tabled amid factors that make it a challenging one to be drawn up: • Expectations of an election-friendly budget as the 14th general election is looming on the horizon. • Decline in petroleum revenue and tax receipts. • Slowing global economy. The Government

Tax hikes can boost government revenue but may hinder longterm growth, 10 October 2016

One of the most asked questions about the upcoming Budget 2017 is whether the Government will increase tax rates to boost its revenue collection. Suggestions and speculations include the introduction of an inheritance tax, increase in tax rates for the top income brackets, reintroduction of the capi

Budget 2017 news, 06 October 2016

More developers call for housing incentives under the Budget 2017 Developers are calling for more incentives for first time buyers of affordable homes in the Budget 2017. Suggestions include the following: • Relaxing lending approvals. • Revise the percentage of funds in Employees Prov

Expected key areas of the Budget 2017 for the people, 05 October 2016

B40 Group Households in the B40 group will probably see measures implemented to enable them to meet their housing needs and cope with rising cost of living. BR1M payments are expected to continue, which will boost the economy as the BR1M payments will be used to purchase products, which will sti

Customs and IRB improving the enforcement activities, 04 October 2016

Ernst & Young Tax Consultant Sdn Bhd reported that tax audits carried out by the Customs Department and the Inland Revenue Board (IRB) is part of the enforcement activities done to stay focus on the tax compliance planning by the authorities. The Customs, through the blue ocean strategy opera