Income Tax (Deduction for Investment in Approved New Food Production Project) Rules 2022
Income Tax (Deduction for Investment in Approved New Food Production Project) Rules 2022 Deemed effective from 1 January 2021, this order shall apply to a resident company incorporated in Malaysia that has made an investment in its related company undertaking an approved new food production project under the Income Tax (Exemption) (No. 6) Order 2020 […]
Public Ruling No. 4/2022 : Recovery from Person Leaving Malaysia
Public Ruling No. 4/2022: Recovery from Person Leaving Malaysia The objective of Public Ruling No. 4/2022 – Recovery from Person Leaving Malaysia is to explain the circumstances and procedures for recovering taxes and debts due from taxpayers who will be leaving Malaysia. Director General (DG) of Inland Revenue Board Malaysia (IRBM) may issue a travel restriction […]
Understanding the Derivation of Employment Income in Malaysia
Understanding the Derivation of Employment Income in Malaysia Under what circumstances, the employment income would be taxed in Malaysia? – The employment income would only be taxed in Malaysia if the employment income is deemed derived from Malaysia under Section 13(2) and Section 13(3) of Income Tax Act 1967. What is Section 13(2) of the […]
Labuan Entities with Dormant Status: Guidelines on Tax Treatment
Labuan Entities with Dormant Status: Guidelines on Tax Treatment The objective of this guideline is to provide clarification on the tax treatment of Labuan entities with dormant status under the Labuan Business Activity Tax Act 1990 [Act 445] as prescribed through the Labuan Investment Committee (LIC) Pronouncement 1-2019 and 2-2019 dated 19 June 2019 and […]
Understanding Employment: Differences between Contract for Services and Contract of Services
Understanding Employment: Differences between Contract for Services and Contract of Services Having a comprehensive understanding of the legal definition of employment, including the distinction between a contract of service and contract for service, is essential for both employers and employees alike. This is because it establishes the parameters of the relationship between them, including the […]
Wilful Tax Evasion in Malaysia: Understanding the Consequences
Wilful Tax Evasion in Malaysia: Understanding the Consequences According to Section 114(1A) of the Income Tax Act 1967, wilful evasion of tax means any action or deed deliberately performed or done with the purpose or intention of evading or assisting any other person to evade tax. The term “evasion” is defined as the action of […]
Amendment of Self-Assessed Return in Malaysia
Amendment of Self-Assessed Return [Section 103(1A)] After submitting my tax return to the Inland Revenue Board Malaysia (IRBM), am I able to make any amendments to it? – The taxpayer is allowed to make self amendment on information or assessment in the Income Tax Return Form (ITRF) submitted to IRBM on time by submitting an […]
Review of Assessment through Application for Relief in Malaysia
Review of Assessment through Application for Relief in Malaysia Under what circumstances is a reduced assessment allowed? 1.1 Relief Application for Errors or Mistakes (Section 131 of the Income Tax Act 1967) The taxpayer may apply for relief under section 131 of the ITA in case of an error or mistake in the income tax return. […]
Keep Sufficient Records for 7 Years: The Importance of Record Keeping for Income Tax Purposes
Keep Sufficient Records for 7 Years: The Importance of Record Keeping for Income Tax Purposes Under Income Tax Act 1967, taxpayers are required to keep sufficient records relating to their business or operations income for at least 7 years from the end of the year of assessment. Who is required to keep records ? Every […]
Tax Audit in Malaysia: A Guide for Taxpayers in Malaysia
Tax Audit in Malaysia: A Guide for Taxpayers in Malaysia Taxation is an essential part of the Malaysian economy, and the Inland Revenue Board of Malaysia (IRBM) plays a critical role in ensuring compliance with tax laws and regulations. As part of this responsibility, IRBM carries out tax audits to verify that taxpayers are reporting […]
