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