Income Tax (Prescription of Activity Excluded From The Definition of “Manufacturing”) Rules 2012 [P.U. (A) 23/2012]

The above Rules specify the activities excluded from the definition of “manufacturing” under paragraph 9 of Schedule 7A, Income Tax Act, 1967.

The Rules are deemed to have effect from the year of assessment 2009.

Income Tax (Exemption) Order 2012 [P.U. (A) 22/2012]

This Order exempts the following from payment of income tax in respect of statutory income derived from a qualifying project:


a) a qualifying company (a Malaysian resident company incorporated under the Companies Act, 1965, and undertaking a qualifying project) which has not commenced its business or a new private healthcare facility business on the date an application is made to the Malaysian Industrial Development Authority (MIDA); or

b) a qualifying company which has not incurred any qualifying capital expenditure on expansion, modernization or refurbishment project on the date an application is made to MIDA; and

c) an application made by a qualifying company to MIDA on or after 1 January 2010 but not later than 31 December 2014.

The amount exempted is 100% of the qualifying capital expenditure which was incurred in the basis period for a year of assessment within a period of five years. The date of commencement of the period shall be determined by MIDA.

The order spells out the interpretation of, among other terms, “incurred”, “private healthcare facility”, “new private healthcare facility”, “qualifying project”, “qualifying capital expenditure”, and “expansion, modernization or refurbishment project”. It also spells out the circumstances for non-application of the order.

A separate account has to be maintained by the qualifying company for the income derived from the qualifying project.

This order is effective from 1 January 2010 until 31 December 2014.

Information on e-Filing for Form e-BE, e-B, e-M, e-P, e-C and e-R for Y/A 2010

Kindly be informed that the Inland Revenue Board (IRB) has informed the Institute that the e-filing system for Forms e-BE, e-B, e-M, e-P, e-C and e-R for Year of Assessment 2010 will be stopped from 30 January 2012 onwards. Taxpayers who have still not submitted their forms can do so manually. The Forms can be obtained at all IRB branch offices.

For further assistance, members may email their enquiries to IRB at e_filing@hasil.gov.my or contact them at 1-300-88-3010.






The e-Filing System for year of assessment 2011, for tax return forms e-BE, e-B, e-M, e-P and e-E, will be launched on 1 March 2012.

IRB Media Release – IRB Branch Offices (in Kedah, Kelantan & Terengganu) Will Be Closed on 22 January 2012

Please be informed that the Inland Revenue Board (IRB) branch offices in Kedah, Kelantan and Terengganu will not be operational on 22 January 2012 due to the Chinese New Year Festival Holiday. In connection with this, the BR1M Form counters in those states will also be closed. All IRB branches will recommence operations on 25 January 2012 onwards. However, the online services are available for taxpayers at www.hasil.gov.my.

You may view the IRB media release at http://www.hasil.gov.my/pdf/pdfam/LHDNMTidakBeroperasi.pdf

MOF Media Release – Status of Bantuan Rakyat 1 Malaysia [BR1M] Programme

Please be informed that the Ministry of Finance (MOF) has issued a media release on the status of the 1Malaysia RM500 Cash Assistance (BR1M) Programme.  The information from the Media Release is as follows:-

i)       The deadline for submission of the BR1M application form has been extended to 10 February 2012.  The forms can be submitted at Inland Revenue Board Branch Offices and at applicable government agencies.

ii)      All applicants will be notified by post of the decision regarding their BR1M application.  Unsuccessful applicants will receive a letter of rejection BK-03 [1/2011] from the authority.

iii)     Applicants can check the status of their application from 16 January 2012 onwards by calling the hotline at 1-800-222-500 or 1-300-88-3010, from 9a.m. to 5p.m. during working hours.

iv)     The payment (in the form of cash vouchers) begins on 15 January 2012 until 15 March 2012 (i.e. 2 months).

v)      The vouchers can be cashed at any branch of the Bank Simpanan Nasional, CIMB and Maybank throughout the country.  They are valid until 15 April 2012.

vi)     For the convenience of the people in rural areas, the Government has provided mobile counters of Bank Simpanan Nasional, CIMB and Maybank to cash the vouchers.

vii)    An appeal may be made in respect of any unsuccessful application, at the IRB branch offices or selected government agencies.  The Appeal Form [Borang Rayuan Bantuan Rakyat 1 Malaysia [BR1M], BK-07 [1/2011] can be downloaded from MOF.

Stamp Duty (Remission) Order 2012 [P.U. (A) 8/2012]

This order is on the remission of the amount of stamp duty chargeable (i.e. excess of RM50.00) under subitem 32(a) of the First Schedule to the Stamp Act 1949 on an instrument of deed of assignment executed between a contractor and subcontractor pursuant to Dasar Pengagihan Kerja kepada Kontraktor Bumiputera Kelas E and F and it is deemed to have come into operation on 1 May 2011.

Real Property Gains Tax (Exemption) Order 2011 [P.U. (A) 434/2011]

In Paragraph 37 of the 2012 Budget Speech it was proposed that the RPGT rates on the gains from the disposal of properties commencing from 1 January 2012 be reviewed.

This order exempts any person from the payment of tax on the chargeable gain in respect of any disposal of a chargeable asset on or after 1 January 2012, on the condition that the amount of chargeable gain shall be determined by a formula provided.

Effectively, the order states that the rates of Real Property Gains Tax (RPGT) are as indicated in the table below:

	Holding Period	RPGT Rates
i)	Up to 2 years	10 %
ii)	Exceeding 2 until 5 years	5 %
iii)	Exceeding 5 years	0 %

The Real Property Gains Tax Act (Exemption) (No.2) 2009 [P.U. (A) 486/2009] published on 30 December 2009 is revoked.

New Coins Series issued into Circulation from 16 Jan

Bank Negara Malaysia has announced that the new Malaysian coins series will be issued into circulation from 16 January 2012 onwards. Members of the public will be able to obtain these new coins through their normal business transactions. 

The new coins to be introduced into circulation in phases are legal tender and will co-circulate with the existing series. The existing series will be gradually phased out. In ensuring a smooth transition to the new coins series, machine vendors had been given sufficient time to calibrate their machines to accept these new coins. 

Themed 'Distinctively Malaysia', the new coins series draws inspiration from distinctive features that define the nation's rich culture and heritage. The design motifs were crafted in the form of nature, flora and fauna and traditional handicraft which is found in Malaysia. The new coins series are in the denominations of 5 sen, 10 sen, 20 sen and 50 sen.

The new coins are smaller and lighter making it more user-friendly for the public. The yellow and silver coloured coins enable the public to easily distinguish the different denominations. The edged designs and the different sizes will facilitate the visually impaired to identify and differentiate the denominations. In addition, latest advancements in minting technology which incorporates improved counterfeit resistance security features are embodied in the new coins series. The new metal alloy used for minting has enhanced durability against wear and corrosion. 

For further information on the new coins series, members of the public can contact BNMTELELINK at 1-300-88-5465 or call 03 - 2698 8044 ext 8658 or visit Bank Negara Malaysia's website at www.bnm.gov.my.

IRB Media Release IRB is Not Involved in the Payment of the RM500 Cash Assistance [BR1M]

Further to our e-CTIM No.10/2012, the Inland Revenue Board (IRB) has issued a media release on 19 January 2012 to inform the public that the IRB does not dispense the “cash assistance” under the Bantuan Rakyat 1Malaysia [BR1M] Programme.

The IRB has provided the following clarification:

i)              It has been designated with the responsibility of assisting in the implementation of the BR1M   programme, in terms of the acceptance and registration of all BR1M application forms.

ii)                     The payment mechanism is the responsibility of other parties, as follows:-

a)      for the states of Selangor, Pulau Pinang, Kedah and Kelantan, the payment mechanism will be managed by the respective Directors of Federal Development Department [Jabatan Pembangunan Persekutuan] (JPP); and

b)    for all other states, it is handled by the respective State Government Secretaries [Setiausaha Kerajaan Negeri] (SUK).

iii)           The SUK and JPP will issue a letter of notification of the status, in respect of each BR1M application (including the unsuccessful applications).

iv)           For applicants who qualify for the assistance, the arrangement for the delivery of the cash vouchers will be made by the offices of the relevant Parliamentary Constituencies or State Assemblymen, as stated in the notification letter.

In view of the above, the public is advised not to go to the IRB Branch offices for BRIM purposes.

However, other than calling the MOF hotline 1-800-222-500, the public may still call the IRB Customer Service Centre at 1-300-88-3010 to check up on the status of their BR1M applications.

In addition to the above, MOF has also issued the Frequently Asked Questions on BR1M. You may view the information provided at the website of the Institute. 

IRB Media Release - Information on BR1M Applicant Not Used for Tax Purposes

The Inland Revenue Board (IRB) has issued a media release on 5 January 2012 to inform the public that the IRB will not use the information provided on a Bantuan Rakyat 1 Malaysi (BR1M) applicantion form for tax purposes. The IRB stated that they will record the details of the applicant in the BR1M System Database for verification purpose only. This is done to ensure that only applicants who are genuinely eligible for the cash assistance of RM500 through BR1M, are given the assistance

Members may refer to e-CTIM No.58/2011 for the information provided earlier on this matter.

Direct Taxation

1. Stamp Duty (Exemption) (No.3) Order 2011 [P.U. (A) 441/2011]

In Paragraphs 76, 77 and 78 of the 2012 Budget Speech and Appendix, 1 it was proposed that a full stamp duty exemption be given on loan agreements for the purchase of residential properties priced up to RM300,000 under the PR1MA Scheme.

Further to this, any residential property purchased from PR1MA Corporation Malaysia is exempted from stamp duty, provided that the Sale and Purchase Agreement is executed on or after 1 January 2012 but not later than 31 December 2016, and the application for exemption is only made once.

The Order exempts the purchaser, named in the Sale and Purchase Agreement, from stamp duty in respect of any loan agreement executed between the purchase and the following:-

a) a bank, financial institution, insurance company or co-operative society;

b) an employer under an employee housing loan scheme; or

c) PR1MA Corporation Malaysia,

Purchaser means:

i) an individual Malaysian citizen

ii) a person eligible to purchase residential property under the Perumahan Rakyat 1Malaysia (i.e. middle income group)

Residential property means:-

i) a house

ii) a condominium unit

iii) an apartment

iv) a flat



built as a dwelling house costing not more than RM300,000 under the Perumahan Rakyat 1Malaysia programme.



2. Stamp Duty (Exemption) (No.4) Order 2011 [P.U. (A) 446/2011]

Appendix 16 of the 2012 Budget proposed that a 100% stamp duty exemption be given on loan agreements of up to RM50,000 under the Micro Financing Scheme. Such exemption is given on loans executed between micro enterprises and SMEs with any banking and financial institution.

Further to this, the Order exempts from stamp duty, the instrument of agreement for a loan or financing, pursuant to a micro financing scheme approved by the National Small and Medium Enterprise Development Council, for an amount not exceeding RM50,000 between a borrower and a participating bank or financial institution. The exemption applies to instruments or agreements for loans executed on or after 1 January 2012.



3. Stamp Duty (Exemption) (No.5) Order 2011 [P.U. (A) 447/2011]

In the second measure under Paragraph 47 of the 2012 Budget Speech, and Appendix 16, it was proposed that a 100% stamp duty exemption be given on loan agreements of up to RM50,000 undertaken from the Professional Services Fund. Such exemption is given on loans executed between any professional (such as accountant, doctor and lawyer) with Bank Simpanan Nasional.

Further to this, the Order exempts from stamp duty, all loan or financing instruments, in relation to the Professional Service Fund, for an amount not exceeding RM50,000, between a borrower and Bank Simpanan Nasional, executed on or after 1 January 2012

Indirect Taxation

1. Customs (Prohibition of Imports) (Amendment) (No.4) Order 2011 [P.U. (A) 437/2011]



This Order seeks to amend the Customs (Prohibition of Imports) Order 2008 [P.U. (A) 86/2008] in respect of the First, Second, Third and Fourth Schedules with effect from 1 January 2012.



2. Customs (Prohibition of Exports) (Amendment) (No.2) Order 2011 [P.U. (A) 438/2011]



This Order seeks to amend the Customs (Prohibition of Exports) Order 2008 [P.U. (A) 87/2008] in respect of the Second Schedule and Third Schedule with effect from 1 January 2012.



3. Customs Duties (Amendment) Order 2011 [P.U. (A) 439/2011]



This Order seeks to amend the Customs Duties Order 2007 [P.U. (A) 441/2007] in respect of the First Schedule with effect from 1 January 2012.

One-off RM200 1Malaysia Book Voucher [Baucar Buku 1Malaysia (BB1M)]

Pursuant to Paragraph 112 of the 2012 Budget Speech, the Government will provide a one-off book voucher assistance of RM200 to all Malaysian students in public and private local institutions of higher learning, and matriculation and Form 6 students whether on a full-time or /part-time basis. The purpose of this book voucher is for the purchase of academic books, journals, scientific magazines and learning equipment based on the requirements of the respective institutions or schools.

The book vouchers, each with a value of RM50, will be distributed by the public and private local institutions of higher learning, Polytechnics and schools in January 2012. The book vouchers are valid from 1 January 2012 to 31 March 2012. Students must ensure that each of the vouchers has their name, I/C No. and stamp of their institutions / schools.

The participating bookshop must make a refundable deposit of RM500 to open a corporate account with Bank Simpanan Nasional in order to cash the book voucher. The voucher must be cashed before 30 April 2012 and the participating bookshop must ensure that the voucher received has been endorsed by the Institute of higher learning/school.

For more information, please visit the Official Portal of the Ministry of Higher Education (MoHE) at http://www.mohe.gov.my/portal/bahan-rujukan/527-garis-panduan-pemberian-baucar-buku-1malaysia-.html. The Institute has compiled the following for your convenience:-

· Guidelines on 1Malaysia Book Voucher Assistance (BB1M)

· 1Malaysia Book Voucher Pamphlet

· Guidelines on Book Seller Voucher Assistance