Utilisation of income tax credit for set-off

The IRB has issued Operational Guidelines No.2/2010 on 30 December 2010 detailing the order and procedures for set-off. It states that a tax credit for a year of assessment arises from -

(i) excess payment on the date the assessment is deemed issued or the formal assessment is raised,

(ii) tax discharged,

(iii) tax credit arising under section 110 of the Income Tax Act 196 or Section 51 of the Finance Act 2007.

Members may view the operational guidelines at http://www.hasil.gov.my/pdf/pdfam/GPHDN2_2010ENG.pdf