Landmark Ruling: Compulsory Acquisition Compensation Exempt from Income Tax
Introduction: In a historic decision, the Federal Court of Malaysia has ruled that compensation received for properties or land forcefully acquired by the government should not be subject to income tax. This landmark ruling marks the first time a provision of the Income Tax Act has been struck down for violating the Federal Constitution. Let’s […]
Practice Note 1/2023 – Explanation on the tax treatment on forex gain & losses under PITA 1967
The Inland Revenue Board of Malaysia (HASiL) issued Practise Note No. 1/2023 on 15 June 2023 to explain how foreign exchange (forex) gains and losses are taxed for a chargeable person under the Petroleum (Income Tax) Act 1967 (PITA) based on the rules set out in Public Ruling No. 12/2019 and MFRS 121 Guidelines. Foreign […]
IRBM – Anti-Bribery & Compliance of Code of Ethics for s.153(3) Tax Agents
Following the issuance of the Revised Code of Ethics for Tax Agents by the Malaysian Inland Revenue Board (HASiL) on January 1, 2023, HASiL has introduced the ‘Akuan Bebas Rasuah dan Pematuhan Kod Etika Ejen Cukai dibawah Subseksyen 153(3), ACP 1967 (Declaration)‘. We believe some of the tax agents who have just obtained or have […]
MOF’s Response to CTIM on Foreign-Source Income Exemption Conditions for Dividends
With the release of revised technical guidelines on December 29, 2022, and a media release (only in Bahasa Malaysia) on December 30, 2022, the Inland Revenue Board (IRB) of Malaysia added a new requirement (an economic substance requirement) to qualify for the tax exemption for foreign-source dividend income received in Malaysia by qualifying persons. This […]
Tax Relief Measures Amid Travel Restrictions: IRBM’s Offer
The Inland Revenue Board of Malaysia (IRBM) would like to inform taxpayers that they may apply for instalment payments of outstanding amounts of Income Tax (CP) and Real Property Gains Tax (CKHT) for recent years without incurring any tax increment. This application can be made from June 6, 2023, until May 31, 2024, throughout the […]
HASiL Media Release – Encouraging The Use Of e-WHT For WHT Payment
In a press release dated 30 August 2023, the Inland Revenue Board of Malaysia (IRBM) wishes to announce that, to facilitate the payment of the Withholding Tax on its website, the electronic Withholding Tax form (e-WHT) was introduced starting January 1, 2023. e-WHT is one of the compulsory e-tax services that must be used online, […]
Invitation for Public Consultation on Draft Public Ruling – Tax Treatment On SPV Companies
The Inland Revenue Board of Malaysia (HASiL) has uploaded the Draft PR on Tax Treatment On Companies That Established Special Purpose Vehicles For The Issuance Of SUKUK – Section 60I Income Tax Act 1967 on its website for the public’s comments/feedback before finalising the PR: The objective of the Public Ruling (PR) is to clarify […]
Announcement Regarding the Closure of Group Electronic Form Submission (e-BaS) via TaeF
The Inland Revenue Board of Malaysia (HASiL) issued a letter to CTIM and other professional groups on August 3, 2023, about the Notice of Closure of Uploading of e-Form Submission in Batches (e-BaS facility) through TAeF. Reference:- Disclaimer: The articles, templates, and other materials on our website are provided only for your reference. While we […]
Technical Guidelines on Tax Treatment of Lease Expenses for Special Assets under PITA 1967
The petroleum industry in Malaysia contributes to the country’s revenue. The Petroleum Development Act 1974 (PDA) granted PETRONAS exclusive petroleum exploration and exploitation rights in Malaysia. PETRONAS regulates petroleum operations, including awarding Production Sharing Contracts (PSC) for exploration. Field Development Plans (FDP) for petroleum agreements require PETRONAS approval. Floating Production Systems (FPS), Floating Production Storage […]
Technical Guidelines on Tax Treatment of R&D Expenditure for Special Assets under PITA 1967
Petroleum income tax is a tax imposed on the Chargeable Person on gains or profits derived from upstream petroleum operations pursuant to section 3 of the Petroleum (Income Tax) Act 1967 (PITA). The petroleum operations definition for this guideline is referred to the interpretation in subsection 2(1) PITA. Research and development expenditure (R&D) for the […]
