TaXavvy Issue 13/2024

In this issue:

Tax Corporate Governance Framework - Updated Guideline & Frequently Asked Questions

The Inland Revenue Board (IRB) recently published the following:

• Guidelines for Tax Corporate Governance Framework, updated as at 23 February 2024; and

• Frequently Asked Questions on Tax Corporate Governance Framework and Guidelines, updated as at 23 February 2024.

e-Invoice - Updated Frequently Asked Questions

The IRB recently published the Frequently Asked Questions for Implementation of e-Invoice in Malaysia, updated as at 26 February 2024.

Operational Guideline No. 2/2024 - Tax Clearance Letter (SPC) Application Procedure for Individuals

The IRB has, on 1 April 2024, issued Operational Guideline No. 2/2024 - Tax Clearance Letter (SPC) Application Procedure for Individuals dated 1 January 2024. GPHDN 2/2024 replaces GPHDN 2/2016 of the same title.

Tax Treatment on the Recognition of Actual Gross Profit or Loss from a Construction Contract 

The IRB has issued Practice Note 1/2024 - Tax Treatment on the Recognition of Actual Gross Profit or Loss from a Construction Contract, dated 29 March 2024, to provide the tax treatment on recognition of actual gross profit from a construction contract.

Tax Incentive for Aerospace Industry 

The Malaysian Investment Development Authority (MIDA) has issued the Guideline and Procedures for Incentive for Aerospace Industry following the Budget 2023 (Retabled) announcement to extend the application deadline for the tax incentive until 31 December 2025.

Income Tax (Exemption) (No. 10) 2018 (Amendment) Order 2024

On 4 July 2022, the Government launched the Malaysia Digital initiative which is a rebranding of MSC Malaysia. This was followed by a guideline to provide information on the transition to Malaysia Digital status, including the benefits and incentives thereunder.

The Income Tax (Exemption)(No. 10) 2018 (Amendment) Order 2024 has now been gazetted on 8 March 2024. It amends the Income Tax (Exemption) (No. 10) Order 2018 in respect of exemption for MSC status companies.

Malaysia-Maldives Double Taxation Agreement

The double taxation agreement (DTA) between Malaysia and Maldives was signed on 24 May 2023. The DTA has yet to be ratified by the Malaysian government (by way of gazette). The DTA will enter into force once both contracting parties exchange notes on the completion of their domestic ratification. 

Labuan tax payment - Bill number

The IRB has issued a press release dated 29 March 2024 on payment of tax under the Labuan Business Activity Tax Act 1990.