To Our Valued Clients
For your update, the Inland Revenue Board ["IRB"] has on 13th April 2020, made available the Frequently Asked Questions ["FAQ"] on Tax Matters During The Movement Control Order ["MCO"] Period (18th March 2020 to 28th April 2020) to update the consequential changes affecting taxpayers due to the extended MCO period until 28th April 2020 and to provide further clarification on measures announced in "Prihatin Rakyat Economic Stimulus Package".
Some of the pertinent updates included therein are as summarised below:-
| 1. |
Submission of notification of change in accounting period ["Form CP204B"] due within the MCO period is extended until 31st May 2020. |
| 2. |
Submission of Application Form of an Approved Research and Development Project under Section 34A of the Income Tax Act 1967 ["ITA 1967"] ["Form 1 (Sek 34A ACP 1967)"] due on 31st March 2020 or 30th April 2020 is extended until 30th June 2020. |
| 3. |
Submission of the tax estimate which is due within the MCO period is extended until 31st May 2020. |
| 4. |
Payments for the tax estimate instalments under Section 107C of the ITA 1967 due on 15th April 2020 and 15th May 2020 (i.e. April 2020 and May 2020 instalments) for companies are extended until 31st May 2020. |
| 5. |
Submission of revision of estimate of tax payable for companies in the 3rd instalment month which falls in April 2020 is extended until 31st May 2020. |
| 6. |
For deferment of payment of tax estimate instalments for 3 months beginning April 2020 until June 2020 which is automatically given to businesses with Small and Medium Enterprises ["SME"] status, the IRB will rely on the declarations made in the tax return form for the year of assessment 2018 submitted in determining the eligibility of the taxpayers. For this purpose, the business criteria for SME status are as follows: |
| |
| (i) |
have paid-up capital of RM2.5 million or less at the beginning of the basis period of a year of assessment; and |
| (ii) |
have a gross business income of not exceeding RM50 million. |
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| 7. |
Taxpayers who are eligible for deferment of tax estimate instalments will be notified via email (the email address registered with the IRB will be used).
For those taxpayers who are eligible for the deferment of tax estimate based on their current situation but do not receive such notification from the IRB, they may appeal to the IRB's Records Management and Taxation Information Division via letter/email. The approval for the said appeal will be notified via email.
Taxpayers may ignore the deferment of payment of tax estimate instalments granted automatically by the IRB and continue to remit the tax estimate instalment according to the schedule of payment as per Form CP204 or Form CP204A. |
| 8. |
Payment of withholding tax due that falls within the MCO period can be made latest by 31st May 2020 without penalty. |
| 9. |
Submission of Monthly Tax Deductions ["MTD"] data and remittance of MTD / payments under Notification to Employee of Tax Deductions by Employer ["Form CP38"] for March 2020 and April 2020 remuneration are extended until 31st May 2020. |
| 10. |
The due date for submission of real property gains tax ["RPGT"] return and payment of RPGT payable that falls during the period from 18th March 2020 to 31st May 2020 is 31st May 2020. |
As regards sales and service tax, Royal Malaysian Customs Department ["RMCD"] has on 14th April 2020 announced that payment for sales and services tax which is due on 31st March 2020 and 30th April 2020 is extended until 12th May 2020. In the event that any late payment penalty is imposed on the payment which is made during the permissible extended period (i.e. on or before 12th May 2020), such penalty will be remitted in full by RMCD.
The updated summary of the extended deadlines for submission of return forms and payment of tax during the MCO period is provided in the Appendix.
For further information, kindly refer to the following:-
Please do not hesitate to contact us if you need any clarification on the foregoing.