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TaXavvy Issue 8/2019
In this issue:
- Form e-C for year of assessment 2019
The Inland Revenue Board (IRB) has released the year of assessment (YA) 2019 Form e-C in their ezHASIL portal and the Company Return Form Guidebook on their main website.
The YA 2019 Form e-C is a substantially shortened return form as compared to the YA 2018 Form e-C. However, the Form is now accompanied by supporting worksheets.
- Guideline on Taxation of Electronic Commerce Transactions
Due to the fast changing e-commerce landscape, the IRB has issued a new Guidelines on Taxation of Electronic Commerce Transactions dated 13 May 2019. This guideline supersedes the Guidelines on Taxation of Electronic Commerce issued on 1 January 2013.
The IRB’s new guideline seeks to provide guidance on the tax treatment of e-commerce transactions. The guideline defines what is meant by an “e-commerce” transaction and identifies the common e-commerce business models now in existence. The guideline then covers the scope of tax liability for:- e-commerce business income
- e-commerce transactions falling under “section 4A - special classes of income”
- e-commerce transactions regarded as “royalty”under the new expanded definition of “royalty” in section 2, effective from YA 2017
- Guidelines on tax treatment related to the implementation of MFRS 121 (or other similar standards) - revised
The Chartered Tax Institute of Malaysia (CTIM) has received the IRB’s revised Guidelines on the tax treatment related to the implementation of MFRS 121 (or other similar standards) dated 16 May 2019. The guideline issued on 24 July 2015 has been superseded.
- Guidelines and procedures for the applications for Automation Capital Allowance - revised
The Malaysian Investment Development Authority (MIDA) has revised their guideline on application for automation capital allowance (“automation CA”) on 23 March 2019. The guideline issued on 25 June 2018 has been superseded. The incentive provides a 200% capital allowance on qualifying expenditure incurred on automation equipment from YA 2015 to YA 2020. The application period for the incentive expires on 31 December 2020.
- Guidelines for approval of Director General of Inland Revenue under Subsection 44(6) of the Income Tax Act 1967 - revised
The guideline dated 15 May 2019 has been revised to bring it up to date with current legislation and practices. It supersedes the version of the guideline issued in January 2005. This guideline covers the types of approved institution or organisation, the criteria and conditions for approval, the powers of IRB and the tax treatment of donors, amongst others.
- Guideline for Principal Hub incentive - revised
The MIDA guideline has been revised to be in line with the amendment orders legislated in February 2019.
- Income tax exemption for religious services provided by non-residents
An income tax exemption order has been legislated to exempt income earned by non-residents from the provision of religious services.
- Withholding tax exemption in relation to software for personal use
The Income Tax (Exemption) (No 4) Order 2019 (“Exemption Order”) has been gazetted to provide exemption from withholding tax (WHT) under section 109 of the Income Tax Act 1967 for payments made to non-residents in relation to software for personal use.
- Special Voluntary Disclosure Programme - updated FAQ
The FAQ for the Special Voluntary Disclosure Programme (SVDP) has been updated to incorporate the recent developments in the SVDP which have been covered in TaXavvy 6-2019 and TaXavvy 7-2019 (i.e. the extension of the SVDP period to 30 September 2019 and issuance of the new Operational Guideline 1/2019). In addition, the IRB has also revised certain questions and answers to the FAQ.
Income tax exemption for religious services provided by non-residents
Special Voluntary Disclosure Programme - updated FAQ
TaXavvy is a newsletter issued by PricewaterhouseCoopers Taxation Services Sdn Bhd. While every care has been taken in compiling this newsletter, we make no representations or warranty (expressed or implied) about the accuracy, suitability, reliability or completeness of the information for any purpose. PricewaterhouseCoopers Taxation Services Sdn Bhd, its employees and agents accept no liability, and disclaim all responsibility, for the consequences of anyone acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. Recipients should not act upon it without seeking specific professional advice tailored to your circumstances, requirements or needs.
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