Tax Bulletin 4 Apr 2020 - (2nd Update) FAQ Issued by Inland Revenue Board (IRB) on Tax Matters During the Movement Control Order
Kuala Lumpur, 4 Apr 2020 – Further to our tax bulletin dated 27 March 2020, the Inland Revenue Board (IRB) has updated its Frequently Asked Questions (FAQ) [click here] on 3 April 2020. Most of the extensions of time granted in the previous FAQ dated 26 March 2020 remain unchanged.
Below are the key changes in the updated FAQ:-
1. All IRB premises nationwide will be closed from 18 March 2020 to 14 April 2020 during the Movement Control Order (MCO) period, except for stamp duty counters at Branch Stamping Office and Hasil Care Line.
2. Extension of time will be given until 30 April 2020 for the submission of Form Q. However, the taxpayer is still required to file the Form N as provided under Section 100 of the Income Tax Act (ITA), 1967. The taxpayer is also required to state on Form N that the delay is due to the implementation of MCO.
3. Extension of time will be given until 30 April 2020 for submission of the Form CP204B during the period of 18 March 2020 to 14 April 2020.
4. Extension of time is granted until 30 April 2020 for tax estimate payments which are due on or before 15 April 2020.
5. Extension of time is granted until 30 April 2020 for revision in the third month of instalment that falls in April 2020. Please take note that the deadline for the submission of the revised tax estimate in the third-month instalment in 2020 is based on the company's basis period.
6. Following the Prihatin Rakyat Economic Stimulus Package announcement, it is stated in the above FAQ that all types of businesses with Small and Medium Enterprises (SMEs) status are eligible for deferment of CP204 payment for 3 months beginning April 2020 until June 2020. The SMEs do not need to apply for the deferment of CP204 payment as it will be given automatically based on IRB’s records. 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.
7. It was previously informed that taxpayers under the tourism industry are required to put in a manual application for the deferment of CP204 payment. This procedure is no longer applicable as the deferment of CP204 payment will be given automatically based on IRB’s records. Companies in the tourism industry (including those with SME status) are eligible for deferment of CP204 payment for 6 months beginning April 2020 until September 2020.
8. CP500 instalment payments for March 2020 and May 2020 can be deferred starting from April 2020 to June 2020. The taxpayer is allowed to revise CP500 on or before 30 June 2020.
9. SMEs are also entitled to deferment of CP500 payments. Deferment of CP500 payment for SMEs will be given automatically based on the payment records with IRB.
10. Deferred payments for CP204 / CP500 have to be settled upon the submission of the income tax return, if there is any balance of tax payable. Furthermore, no tax penalties will be imposed under Section 107C (9) / 107B (3) of the ITA, 1967.
11. Stamp duty counters nationwide will be in operation from 3 April 2020 to cater to individual duty payers. Please refer to the FAQs for further details such as the limited services available and operating hours.
12. Agents or representatives with STAMPS user ID are required to submit the stamping application and make payment online.
Below are the key changes in the updated FAQ:-
1. All IRB premises nationwide will be closed from 18 March 2020 to 14 April 2020 during the Movement Control Order (MCO) period, except for stamp duty counters at Branch Stamping Office and Hasil Care Line.
2. Extension of time will be given until 30 April 2020 for the submission of Form Q. However, the taxpayer is still required to file the Form N as provided under Section 100 of the Income Tax Act (ITA), 1967. The taxpayer is also required to state on Form N that the delay is due to the implementation of MCO.
3. Extension of time will be given until 30 April 2020 for submission of the Form CP204B during the period of 18 March 2020 to 14 April 2020.
4. Extension of time is granted until 30 April 2020 for tax estimate payments which are due on or before 15 April 2020.
5. Extension of time is granted until 30 April 2020 for revision in the third month of instalment that falls in April 2020. Please take note that the deadline for the submission of the revised tax estimate in the third-month instalment in 2020 is based on the company's basis period.
6. Following the Prihatin Rakyat Economic Stimulus Package announcement, it is stated in the above FAQ that all types of businesses with Small and Medium Enterprises (SMEs) status are eligible for deferment of CP204 payment for 3 months beginning April 2020 until June 2020. The SMEs do not need to apply for the deferment of CP204 payment as it will be given automatically based on IRB’s records. 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.
7. It was previously informed that taxpayers under the tourism industry are required to put in a manual application for the deferment of CP204 payment. This procedure is no longer applicable as the deferment of CP204 payment will be given automatically based on IRB’s records. Companies in the tourism industry (including those with SME status) are eligible for deferment of CP204 payment for 6 months beginning April 2020 until September 2020.
8. CP500 instalment payments for March 2020 and May 2020 can be deferred starting from April 2020 to June 2020. The taxpayer is allowed to revise CP500 on or before 30 June 2020.
9. SMEs are also entitled to deferment of CP500 payments. Deferment of CP500 payment for SMEs will be given automatically based on the payment records with IRB.
10. Deferred payments for CP204 / CP500 have to be settled upon the submission of the income tax return, if there is any balance of tax payable. Furthermore, no tax penalties will be imposed under Section 107C (9) / 107B (3) of the ITA, 1967.
11. Stamp duty counters nationwide will be in operation from 3 April 2020 to cater to individual duty payers. Please refer to the FAQs for further details such as the limited services available and operating hours.
12. Agents or representatives with STAMPS user ID are required to submit the stamping application and make payment online.
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
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
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
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
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
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 & Service Tax), Tax Services
DL: +6 (0)3 2297 1146
sandra.saw@bakertilly.my
Associate Director (Corporate Tax & Sales Tax & Service Tax), Tax Services
DL: +6 (0)3 2297 1146
sandra.saw@bakertilly.my
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