Loading Results

TaXavvy Issue 04/2021

In this issue:

 
Updates to Transfer Pricing Guidelines

The Inland Revenue Board (IRB) has updated Chapter XI (Documentation) of the Transfer Pricing (TP) Guidelines to specify a shorter timeframe for taxpayers  to submit TP documentation upon request by the IRB.

Green Investment Tax Allowance - Asset incentive

In line with the Budget 2020 proposal, the Malaysian Green Technology and Climate Change Centre (MGTC) has extended the  Green Investment Tax Allowance (GITA - Asset) incentive for the acquisition of qualifying assets listed under the MyHijau Directory to cover applications received by MGTC by 31 December 2023 (previously 31 December 2020).  

Tax deduction for expenditure on issuance of Sukuk

The following Gazette Orders have been issued pursuant to the Budget 2020 proposals in relation to tax deduction on expenditure on issuance of Sukuk:

  • Income Tax (Deduction for expenditure on issuance of Sukuk and retail Sukuk structured pursuant to the principle of Wakalah) Rules 2021.
  • Income Tax (Deduction for expenditure on issuance or offering of Sustainable and Responsible Investment Sukuk) (Amendment) Rules 2020.
Guidelines for approval under section 44(11C) for COVID-19 Relief Fund  

The Ministry of Finance has updated the Guidelines for approval under section 44(11C) for COVID-19 Relief Fund (“the Guideline”), details of which were previously covered under TaXavvy 34/2020.

Tax treatment of employee benefits in relation to smartphone, tablet or computer

Following the announcement under PENJANA (refer to TaXavvy 40/2020 and TaXavvy 41/2020) to provide tax exemption of up to RM5,000 for smartphone, tablet or computer, the following Gazette Orders have been issued:

  • Income Tax (Exemption) Order 2021
  • Income Tax (Deduction for Value of Benefit given to Employees) Rules 2021
Stamp duty exemption for restructuring or rescheduling of a loan or financing

The Stamp Duty (Exemption) (No. 2) Order 2020 was gazetted in May 2020, providing stamp duty exemption of an instrument for the restructuring or rescheduling of a business loan or financing (refer to TaXavvy 39/2020).

The Stamp Duty (Exemption) (No. 2) 2020 (Amendment) Order 2021 has now been issued to amend the Stamp Duty (Exemption) (No. 2) Order 2020.

Other incentive developments
  • Extension of tax exemption on director fees received by non-citizens from a Labuan entity
  • MIDA Guidelines and Procedures for the Application of Automation Capital Allowance
Double Taxation Agreement between Malaysia and Cambodia

The Double Taxation Agreement between Malaysia and Cambodia has entered into force on 28 December 2020.

Wage Subsidy Programme 3.0

SOCSO has issued the FAQ for Wage Subsidy Programme 3.0. The FAQ covers the targeted Wage Subsidy Programme (WSP) for the tourism and retail sectors under Budget 2021 and the WSP announced under PERMAI for all sectors operating in states under MCO 2.0.

Reallocation of taxpayers’ files

The IRB has issued a media release dated 13 January 2021 to inform on the reallocation of income tax files for certain taxpayers, effective from 1 January 2021. Affected taxpayers will be notified in stages via email or letter. Taxpayers can also look out for the notification via the MyTax application.

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.

 

{{filterContent.facetedTitle}}

Contact us

PwC Malaysia

General enquiries, PwC Malaysia

Tel: +60 (3) 2173 1188

Email
Follow us

© 2018 - 2026 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details.