IRB Press Release – Cyberjaya Revenue Service Centre Begins Operations

The Inland Revenue Board (IRB) has issued a press release on 27 February 2012 to inform the public that the Revenue Service Centre at Menara Hasil Cyberjaya has started operations on 27 February 2012. The Revenue Service Centre will facilitate consultation in respect of stamp duty and income tax matters for individual taxpayers only within Cyberjaya.

Members may view the Press Release at IRB’s website

Disruption in e-Filing System Applications

Kindly be informed that the Inland Revenue Board (IRB) has informed the Institute that there will be a disruption in the applications of e-Filing, namely, TAeF, SPSD and HTHA on 26 February 2012 (Sunday) from 8a.m. till 12midnight, for maintenance purposes.

For further assistance, members may email their enquiries to IRB at helpitef@hasil.gov.my.

Schedule on General Issue and Submission of Income Tax Return Forms (ITRFs)

The Inland Revenue Board (IRB) has issued the above Schedule showing the date of general issue of ITRFs and the due date for submission of these ITRFs.  

Members may view the schedule at the IRB’s website.

Filing Programme For Income Tax Return Forms (ITRF) In The Year 2012

The Inland Revenue Board (IRB) has issued the 2012 Filing Programme.  The salient points to note are as follows:

• Where the due date for filing of the Income Tax Return Form (ITRF) falls during the calendar year 2012, a grace period of 15 days is granted for e-Filing. This grace period also applies to payment of balance of tax payable under subsections 103(1), 103(1A) and 103(2) of the Income Tax Act 1967, assessments issued in calendar year 2012 and debt due to the Government under Finance Act 2007 and Finance Act 2009.
• With regard to “manual filing”, a grace period of 3 working days is granted for cases where the ITRFs are sent by post; however, there is NO grace period for ITRFs filed by hand.
• Any application for an extension of time for filing and for payment of the balance of tax payable must be made to IRB separately at least 15 days before the due date for the submission of the ITRF.  Each application should have strong and valid reasons and will be considered based on the merits of the case.  The applications should be addressed to the Director of Policy and Operations Division, IRB at Cyberjaya.
• For companies which commenced operations after 31 December 2007, filing of Form R is not required for Year of Assessment 2010 and subsequent years. 
• For refund cases only, the relevant attachments (Lampiran) and worksheets (Helaian Kerja) have to be submitted manually.

For more information members may view the 2012 Filing Programme at the IRB’s website.

Form CP58 [2011]–Statement of Monetary And Non-Monetary Incentive Payment to An Agent, Dealer or Distributor Pursuant to Section 83A of the Income Tax Act, (ITA) 1967

Further to our e-CTIM No.73/2011, we would like to inform that the Inland Revenue Board (IRB) has uploaded the prescribed Form CP58 (pursuant to Section 83A) on its website.  The form is made available in PDF format and also in Excel format.

The IRB has also provided the Guide Notes on Filling Out the Form CP58. You may view the above documents at the IRB’s website.

Finance Act 2012 (Act 742)

Further to our e-CTIM 22 of 2012, please take note that Section 3 of Finance Act 2012 (Act 742) is now in order, vide the link provided.  

REQUEST FOR 2013 BUDGET PROPOSALS

CTIM requests all members to submit proposals for the 2013 Budget. Members are advised to consider proposals that are of importance to their businesses. More importantly, the proposals must be relevant and can be readily implemented by the Government. Proposals that have a positive impact on the economy will be most welcome.

These proposals will be reviewed by CTIM’s Technical Committee and where appropriate, will be included in the Memorandum for submission to the Ministry of Finance. All proposals must have justification and where relevant, quantification of the impact must be provided to ensure sufficient depth to the proposal.

The 2013 Budget will be tabled on Friday, 28 September 2012. Your proposals should reach us not later than 15 March 2012. You may submit all proposals via email to kslim@ctim.org.my or kim@ctim.org.my. Alternatively you may fax to the Institute at 03-2162 8990.

We look forward to your suggestions by 15 March 2012.

Disruption in e-Filing System Applications

Kindly be informed that the Inland Revenue Board (IRB) has informed the Institute that there will be a disruption in the applications of e-Filing, namely, TAeF, SPSD and HTHA on 18 February 2012 (Saturday) from 8a.m. till 12midnight, for maintenance purposes.

For further assistance, members may email their enquiries to IRB at helpitef@hasil.gov.my.

MALAYSIAN DESIGN COUNCIL

Pursuant to Paragraph 40 of the 2012 Budget Speech and Appendix 9, it was proposed that providers of industrial design services be given pioneer status with income tax exemption of 70% of statutory income for 5 years provided the company has fulfilled the stipulated criteria, including registration by the industrial design providers and the Malaysian designers with the Malaysian Design Council.

The purpose of this incentive is to promote Malaysia’s industrial design industry which in turn will contribute to improving productivity, quality and product competitiveness of Malaysian businesses.

Pending the disclosure of information relating to the incentives, members may visit the Malaysian Design Council (MDC) at the Majlis Rekabentuk Malaysia (MRM)’s website at the following link http://www.mrm.gov.my/main.aspx for MDC’s activities.

CIRCULAR NO. 5/2012

15 Feb 2012 Circular 05/2012

TO ALL ACCOUNTANTS

PUBLIC RULING NO. 1/2012, CAREER FAIR INCENTIVE, INLAND REVENUE BOARD OF MALAYSIA (AMENDMENT) ACT 2012 – ACT A1418, PERUMAHAN RAKYAT 1MALAYSIA ACT 2012 – ACT 739 AND FINANCE ACT 2012 – ACT 742

1. PUBLIC RULING NO. 1/2012

Members are hereby informed that the Inland Revenue Board (IRB) has on 27 January 2012 issued Public Ruling (PR) No. 1/2012: Compensation for Loss of Employment. This PR, which is effective from year of assessment 2012 and subsequent years of assessment, provides an explanation on the characterisation of lump sum payments received by employees upon the termination of their employment as compensation for loss of employment and the related tax treatment pertaining to the compensation for loss of employment.

The above PR can be downloaded from the IRB's website at the following link:http://www.hasil.gov.my/pdf/pdfam/PR1_2012.pdf.

2. CAREER FAIR INCENTIVE

Following the 2012 Budget announcement, the Talent Corporation Malaysia Berhad (TalentCorp) has provided some general information pertaining to the Career Fair Incentive (CFI) in relation to expenses incurred by companies for participating in the career fairs abroad endorsed by TalentCorp will be given double deduction. The claim is effective from year of assessment 2012 until 2016. This CFI is expected to be launched by the end of the first quarter of 2012.

This incentive is applicable to any organisation or company that participates in TalentCorp overseas career fairs. The TalentCorp will issue a letter of endorsement to the participating companies upon receiving the list of participating companies from the organisers of endorsed career fairs after the event. The company has to ensure that its participation in the career fair is reported by the organiser to TalentCorp. In order to benefit from this incentive, the companies must actively participate in the endorsed career fair. Registration alone is not deemed to be participation.

For further development and updates of the incentive, members are advised to leave their email address at the following link: http://www.talentcorp.com.my/malaysians-abroad/career-fair-incentive-cfi/.

3. INLAND REVENUE BOARD OF MALAYSIA (AMENDMENT) ACT 2012 – ACT A1418

Please be informed that the Inland Revenue Board of Malaysia (Amendment) Act 2012 (Act A1418), which was gazetted on 9 February 2012, effected the amendment to Section 6A of the Inland Revenue of Malaysia Act 1995 and included a new Section 10B.

The amended Section 6A provides for the appointment of two or more deputy chief executive officers.

The new Section 10B prescribes the additional function of the Board with regard to the management of any moneys allocated by the Government for implementation of any programme and the disbursement of the moneys to any person.

In this regard, the Act A1418 is attached for members’ attention.

4. PERUMAHAN RAKYAT 1MALAYSIA ACT 2012 – ACT 739

As proposed in the 2012 Budget announcement, the Perumahan Rakyat 1Malaysia Act 2012 (Act 739) was gazetted on 9 February 2012.

This Act provides for and regulates matters relating to the development and construction of housing accommodation, infrastructure and facilities under the Perumahan Rakyat 1Malaysia Programme.

In this regard, the Act 739 is attached for members’ attention.

5. FINANCE ACT 2012 – ACT 742

Please be informed that the Finance Act 2012 (Act 742) was gazetted on 9 February 2012. However, some of the amendments that have not taken effect are as follows:

a. the proposed amendments to Sections 80, 106 and 107D of the Income Tax Act 1967 as indicated in the Finance (No. 2) Bill 2011.
b. the new subsections 81(2) and 81(3) of the Income Tax Act 1967 as proposed in the Finance (No. 2) Bill 2011.

For further details, the Act 742 is attached for members' attention.

Please be guided accordingly.


HO FOONG MOI (MS)
Executive Director
On behalf of the Registrar

ACT 743 - LIMITED LIABILITY PARTNERSHIPS ACT 2012

The Limited Liability Partnerships Act 2012 was gazetted on 9 February 2012.

It spells out, among other things, the fundamentals of a Limited Liability Partnership (LLP), formation and registration, management of a LLP, conversion to LLP, foreign LLPs, winding-up, dissolution and striking off, and enforcement.

For further details, you may view Limited Liability Partnerships Act 2012 (Act 743) at http://www.federalgazette.agc.gov.my/outputaktap/20120209_743_BI_JW001761%20Act%20743-BI.pdf

Finance Act 2012 (Act 742) Gazetted on 9 February 2012

Please be informed that the Finance Act 2012 (Act 742) was gazetted on 9 February 2012.  The Institute would like to highlight the following:

1) the amendments to Sections 80, 106 and 107D of the Income Tax Act 1967 as indicated in the Finance (No.2) Bill 2011 have been withdrawn.

2) the proposed new subsections 81(2) and 81(3) of the Income Tax Act 1967 as indicated in the Finance (No.2) Bill 2011 have been withdrawn.

3) An amendment has been made on Section 22 of the Labuan Business Activity Tax Act1990, and

4) Section 3 of the Finance Act 2012 (Act 742) – Commencement of amendments to the Income Tax Act 1967 – has not been revised to accommodate the changes made in item 1 above.

For further details, you may view the Finance Act 2012 (Act 742) at the following link http://www.federalgazette.agc.gov.my/outputaktap/20120209_742_BI_JW001761%20BI%20Act%20742%20Teks%201.pdf .

Public Ruling No.1/2012 on Compensation for Loss of Employment

Please be informed that the Inland Revenue Board (IRB) has uploaded Public Ruling No.1/2012: Compensation for Loss of Employment, issued on 27 January 2012. You may view the Public Ruling on the website of the Institute and the website of the IRB.

Please study the Public Ruling carefully and let us have your feedback and any enquiry so that we may raise it to the IRB.

Inland Revenue Board of Malaysia (Amendment) Act 2012 - (Act A1418)

The Inland Revenue Board of Malaysia (Amendment) Act 2012 (Act A1418), which was gazetted on 9 February 2012, effected the amendment to Section 6A of the Inland Revenue Board of Malaysia Act 1995, and included a new Section 10B.

The amended Section 6A provides for the appointment of two or more deputy chief executive officers.

The new Section 10B prescribes the additional function of the Board with regard to the management of any moneys allocated by the Government for implementation of any programme, and the disbursement of the moneys to any person.

IRB Announcement Disruption of the Services for e-Daftar and Kalkulator PCB

Please be informed that the Inland Revenue Board (IRB) has announced that the services of the e-Daftar and Kalkulator PCB systems will be disrupted starting from 5.30pm on 3 February 2012 until further notice. IRB regrets any inconvenience caused.