Time Limit For Unabsorbed Adjusted Business Losses Carried Forward
The carried forward of unabsorbed company losses would be extended for 10 instead of 7 consecutive years of assessment, as was indicated in the Budget 2022. In light of this, section 44(5F) has been amended with retrospective effect from YA 2019. PR No. 1/2022, entitled “Time Limit for Unabsorbed Adjusted Business Losses Carried Forward,” was […]
Tax Treatment for Developers, JMBs, MCs or Sub-MCs for the Maintenance Fees and Sinking Fund
The Inland Revenue Board (IRB) has released on its website revised Technical Guidelines in Bahasa Malaysia, titled “Garis Panduan Berhubung Layanan Cukai Ke Atas Pemaju Atau Badan Pengurusan Bagi Penyenggaraan Dan Pengurusan Bangunan Dan Harta Bersama” (Guidelines), dated 18 July 2022. These Guidelines represent a significant revision to the earlier Guidelines (“Old Guideline”) dated 21 […]
Updated Guidelines: Application for Tax Clearance Letter (TCL) for a Company, LLPs & Labuan Entity
Operational Guidelines No. 1/2022 dated May 24, 2022, in Bahasa Malaysia, titled “Permohonan Surat Penyelesaian Cukai Bagi Syarikat, Perkongsian Liabiliti Terhad Dan Entiti Labuan,” were released on the IRB’s website in June 2022. DOWNLOAD This version of the Operational Guidelines replaces the previous version, Operational Guidelines No. 3/2021, which was issued on June 30, 2021. […]
Labuan Tax Developments
The following Amendment Acts have been gazetted on 9 June 2022 and are deemed to have come into operation on 1 January 2019: These three Amendment Acts 2022 contain amendments to the Labuan Companies Act 1990, Labuan Financial Services and Securities Act 2010 and Labuan Islamic Financial Services and Securities Act 2010. Labuan Companies (Amendment) […]
Guidelines on Prescribed Labuan Business Activities for Non-Licensed Trading Entities in the LIBFC
The Labuan business activity comprises trading and non-trading trading activities. Section 2B of the Labuan Business Activity Tax Act 1990 (LBATA) provides that a Labuan entity carrying on a Labuan business activity must comply with specific substance requirements to benefit from the 3% preferential tax rate:- The Labuan Business Activity Tax (Requirements for Labuan Business […]
Invitation by IRBM for Public Consultation on Draft Public Rulings
The primary objective of this public consultation is to collect feedback from various stakeholders regarding the issues associated with these PRs. Please be aware that, as stated by IRBM, any and all thoughts and comments that are submitted will be taken into consideration as well as may be made public. This public consultation on the […]
Tax Corporate Governance Framework introduced
On April 11, 2022, in response to the growing expectation that organisations in Malaysia will implement governance practices that enhance the accountability, transparency, and integrity of the tax system, the Inland Revenue Board of Malaysia (IRBM) published: This Tax Corporate Governance Framework intends to provide an overview of the IRBM’s expectations on the Tax Corporate […]
IRBM’s Response to CTIM on Forms CP 22 / CP 22A
Mandatory adoption of Prescribed Forms CP 21, CP 22, CP 22A and CP 22B effective from 1 January 2022 Effective January 1, 2021, under the amendments to subsections 83 (2), (3), and (4) of the Income Tax Act 1967, Forms CP 21, CP 22, CP 22A, and CP 22B must be submitted by the employers […]
Tax Treatment on the Income of Doctors in Private Hospitals
I am sure many of you will still remember the widespread allegation that doctors (from now on referred to as the doctor) who provide medical services (e.g., treatment, consultancy, surgical, etc.) in Private Hospitals were evading taxes many years ago, and LHDN conducted audits as a result. It is not only permissible but common to […]
Guidelines on the application procedure for a Special Deduction in respect of a Qualifying R&D
Guidelines on the application procedure for a special deduction in respect of a Qualifying R&D On August 13, 2020, the guidelines on the application procedure for a special deduction in respect of a qualifying research and development (R&D) were issued by the Inland Revenue Board of Malaysia (“IRBM”). These guidelines explain the application process for an […]
