Tax Bulletin 14 Apr 2020 - (3rd Update) FAQ Issued by Inland Revenue Board (IRB) on Tax Matters During the Movement Control Order

Kuala Lumpur, 14 April 2020 Due to the extension of the Movement Control Order (MCO) to 28 April 2020, the Inland Revenue Board (IRB) has updated their Frequently Asked Questions (FAQ) [click here] which covers the period from 18 March 2020 until 28 April 2020.

Below are the key changes in the updated FAQ (10 April 2020):-

  1. All IRB premises nationwide will be closed from 18 March 2020 to 28 April 2020 during the MCO period, except for the stamp duty counters at Branch Stamping Office and Hasil Care Line.

  2.  Most of the extensions of time granted in the previous FAQ dated 3 April 2020 have been extended to 31 May 2020. Please refer to the above FAQ for more information.

  3. Extension of time will be given until 30 June 2020 for the submission of the audited accounts by institutions or organisations approved under section 44(6) of the Income Tax Act (ITA), 1967 (approved charities, not-for-profit organisations,etc).

  4. The 2020 Return Form Filing Programme [click here] has also been updated. A grace period of 2 months has also been granted to those taxpayers with accounting period ending 31 December 2019 for the submission of Forms C, C1, PT, TA, TC, TR and TN for YA 2019 (previously the 2 months grace period was granted to taxpayers with accounting period ending 31 July 2019 until 30 November 2019 only).

  5. Further to the previous FAQs from IRB on the deferment of payment of tax estimates for Small and Medium Enterprises (SMEs), we understand that a business will qualify for SME status provided its paid-up capital in respect of ordinary shares is RM2.5 million and below at the beginning of the basis period for a year of assessment; and the gross business income from all business sources does not exceed RM50 million. Further clarification on deferment of tax estimates payment are provided as below:- 

    a) All types of businesses with SME status are eligible for deferment of CP204 payment for 3 months and it will be given automatically based on IRB’s records.The IRB will determine whether an SME will qualify for the deferment of estimated tax payment based on the YA 2018 tax return submitted. 

    b) As for the automatic deferment of tax estimates payment, taxpayers can choose to reject the automatic deferment and continue paying the tax estimates based on the original payment schedule without having to inform the IRB. (*)

    c) The IRB will notify taxpayers who are entitled to the automatic deferment of tax estimates payments by email (which is registered with the IRB). If the taxpayer is entitled to a deferment but has yet to receive the email, the taxpayer will not have to make the payment for the instalment due on 15 April 2020. (*)

    d) Taxpayers can appeal to the IRB if it is found that the company is eligible for deferment of tax estimate payment based on the current situation of the company. A notification email will be issued by the IRB if the appeal is approved. (*)

    (*) The above also apply to companies in the tourism industry which are eligible for deferment of tax estimate payments. 

  6. Tax refunds will be processed as usual. However, for ongoing audit cases, taxpayers are required to submit the supporting documents as requested within the MCO period for the purposes of tax refund. 

For any enquiries or assistance, please contact any of the following in this office:

Mr Anand Chelliah
Managing Partner, Tax Services
Asia Pacific Tax Leader
DL: +6 (0)3 2297 1093
anand.chelliah@bakertilly.my

Mr Marcus Tan
Executive Director (Corporate Tax & Tax Incentive), Tax Services
DL: +6 (0)3 2297 1521
marcus.tan@bakertilly.my

Mr Yohan Francis
Executive Director (Transfer Pricing), Tax Services
DL: +6 (0)3 2297 1096
yohan.xavier@bakertilly.my

Mr Murugan Anbanantham
Director (Technical), Tax Services
DL: +6 (0)3 2297 1004
murugan.anbanantham@bakertilly.my

Ms Tay Siew Chu
Associate Director (Corporate Tax & Personal Tax), Tax Services
DL: +6 (0)3 2297 1139
siewchu.tay@bakertilly.my

Ms Sandra Saw
Associate Director (Corporate Tax & Sales Tax and Service Tax), Tax Services
DL: +6 (0)3 2297 1146
sandra.saw@bakertilly.my