IRB Media Release dated 27 April 2012 --- Payment of Tax

The Inland Revenue Board (IRB) has issued a media release highlighting the availability of its electronic payment facility.

Taxpayers can make payment of their taxes to the IRB electronically via the e-Payment (“e-Bayaran”) facility.

The IRB has also provided a list of banks and government agencies which are authorised to collect taxes on its behalf, and the facilities offered by each of them. In this regard, the bank confirmation slip or the online payment confirmation slip will be deemed as an official receipt from the IRB.

For more information, members may visit IRB’s website or call 1-300-88-3010.

Amendments to the Claim Codes in the 2011 and 2012 Form C Guidebooks

Please be informed that the Inland Revenue Board (IRB) has made the following amendments to the Claim Codes listed in Appendix D to the 2011 and 2012 Form C Guidebooks as follows:-

i) Appendix D to Form C 2011 Guidebook

Additional code “147” for “Deduction for payment of premium to Malaysia Deposit Insurance Corporation” [Reference P.U.(A) 379/2001] is inserted in Section 1 (Special Deduction and Other Claims) of Appendix D.

ii) Appendix D to Form C 2012 Guidebook


• Additional code “147” for “Deduction for payment of premium to Malaysia Deposit Insurance Corporation” [Reference P.U.(A) 379/2001], is inserted in Section 1 (Special Deduction and Other Claims) of Appendix D.
• Additional code “148” for “Deduction for expenditure on franchise fee” [Reference P.U.(A) 76/2012] is inserted in Section 1 (Special Deduction and Other Claims) of Appendix D.
• Code “119” for “Implementation of RosettaNet” is no longer applicable with effect from year of assessment 2012 [Reference P.U.(A) 405/2011]

For further details, members may access the Form C Guidebook at the IRB’s website via the following link http://www.hasil.gov.my > Home > Forms > Company > Relevant years.

Media Release --- IRB & Symantec Provide Best Practices for e-Filing and m-Filing

The Inland Revenue Board (IRB) in collaboration with Symantec offer best practices to taxpayers with regard to e-Filing, m-Filing and e-Payment services.

They encourage taxpayers to adopt online security best practices and ensure that their mobile devices are secured prior to transacting online. Taxpayers need to be extra cautious to ensure protection of their personal and confidential information, such as their personal identification number, address, salary, financial and contact details, during the filing of their taxes online.

In connection with this, Symantec has provided guidelines in the Media Release for taxpayers to keep their identity and confidential information secure when filing taxes and making payments online.

Resources for Reference

• Report suspicious and fraudulent emails on taxes and related topics to aduan@hasil.gov.my

• For queries, please call LHDNM’s hotline at 1-300-88-3010 or refer to Frequently Asked Questions


• Stay informed on the latest Spam and Phishing trends with the monthly Symantec Intelligence Report

• Learn about staying safe online at Symantec’s Family Resource Centre


For more information members may visit at www.hasil.gov.my or www.symantec.com

IRB Media Release dated 23 April 2012 --- 7 Days Left To Submit Form BE

The Inland Revenue Board (IRB) has issued a media release reminding all taxpayers that the deadline for submission of Form BE for the Year of Assessment 2011 is 30 April 2012.

It warns taxpayers that failure to submit an Income Tax Return Form (ITRF) is an offence and a penalty amounting to not exceeding treble the tax payable may be imposed under subsection 112 (3) of the Income Tax Act, 1967.

For those who e-file, however, a grace period of 15 days is granted (i.e. the deadline is extended to 15 May 2012).

For more information members may visit IRB’s website or call 1-300-88-3010.

MALAYSIAN CODE ON CORPORATE GOVERNANCE 2012

The Securities Commission (SC) has released the Malaysian Code on Corporate Governance 2012 (MCCG 2012) as a key deliverable of the Corporate Governance Blueprint (Blueprint) and supersedes the Malaysian Code on Corporate Governance 2007 (2007 Code). It sets out broad principles and specific recommendations on structures and processes which companies should adopt in making good corporate governance an integral part of their business dealings and culture. It also elaborates on the need for boards to recognize and manage risks as well as to encourage shareholder participation.

This new code on corporate governance focuses on clarifying the role of the board in providing leadership, enhancing board effectiveness through strengthening its composition and reinforcing its independence. It also encourages companies to put in place corporate disclosure policies that embody principles of good disclosure. Companies are advised to make public their commitment to respecting shareholder rights.

The MCCG 2012 adopts a new structure and encompasses recommendations from the Blueprint and parts of the 2007 Code. It sets out eight (8) broad principles as follows:
1) Establish clear roles and responsibilities
2) Strengthen composition
3) Reinforce independence
4) Foster commitment
5) Uphold integrity in financial reporting
6) Recognise and manage risks
7) Ensure timely and high quality disclosure
8) Strengthen relationship between company and shareholders

The MCCG 2012 will be effective on 31 December 2012. In other words, listed companies with financial year ending 31 December 2012 onwards will be required to report on MCCG 2012 and disclosure should be made in the annual report published in 2013.

Members can view the copy of the MCCG 2012 and a set of Frequently Asked Questions (FAQs) attached or download them from the SC website at www.sc.com.my.

TECHNICAL GUIDELINE ISSUED BY THE IRB

The IRB has on 9 April 2012 updated the List of Certification Bodies under Subparagraph 34(6)(ma) Income Tax Act 1967, which can be downloaded from the IRB's website at the following link: http://www.hasil.gov.my/pdf/pdfam/CertBodies9April2012.pdf.

POSTPONEMENT OF THE SECOND READING OF GOODS AND SERVICES TAX (GST) BILL 2009

Please be informed that the Second Reading of GST Bill 2009 which is scheduled on 19 April 2012 has been postponed to another date.

E-Filing Service Counters Will be Open Until 6.00 pm

The Inland Revenue Board (IRB) has set up e-filing service counters at its Headquarters and various branches to assist taxpayers to file their Income Tax Return Forms electronically.

The IRB has announced on the Homepage of its website that during the last two (2) weeks of April 2012, including public holidays (Fridays / Saturdays / Sundays), the e-filing service counters at all the IRB Branch Offices, the Information Processing Department (JPPM), Customer Service Centres and Payment Counters will be open until 6.00 p.m. daily.



Members may view the List of e-Filing Service Counters at the IRB’s website.

Updated List of Certification Bodies Under Subparagraph 34(6)(ma) ITA 1967

On 9 April 2012, the IRB issued an updated list of certification bodies under Section 34(6)(ma) for the purpose of claiming double deduction for expenses incurred in obtaining certification for recognised systems of quality and standards and halal certification.

The list provides the validity periods of the certification bodies. Please note that a new certification body has been introduced for the Occupational Safety and Health Management System Program (OSH). A new certification body has also been approved for Certification of Persons System Program (PERSONNEL)

Members may view the Certification Bodies Under Subparagraph 34(6)(ma) at IRB’s website.

Capital Markets And Services (Private Retirement Scheme Industry) Regulations 2012 [P.U. (A) 77/2012]

The Capital Markets and Services (Private Retirement Scheme Industry) Regulations 2012 (the Regulations) have been gazetted and came into operation on 19 March 2012. The Regulations provide the operational framework for the Private Retirement Scheme (PRS), in particular the duties and responsibilities of the parties involved, namely the PRS Provider, the Scheme Trustee and the Trustee for the Employer-Sponsored Retirement Scheme.
Members may click here to view the Regulations.

The Securities Commission of Malaysia (SC) has also issued the Guidelines on PRS which lay down the detailed operational, regulatory and disclosure requirements which must be complied with by the PRS Providers, the Scheme Trustee, etc. . In addition, the SC has also published a list of Frequently Asked Questions on PRS and the relevant application and notification forms as well as various checklists. .

A Press Release was issued on 5 April by the SC announcing the approval of eight Private Retirement Scheme Providers. It was stated that the PRS Providers were selected on the basis of their expertise in investment and/or pension fund management, experience in global pensions management, financial strength, governance structure and proposed business model. The eight approved PRS Providers are as follows:

• AmInvestment Management Sdn Bhd;
• American International Assurance Bhd;
• CIMB-Principal Asset Management Bhd;
• Hwang Investment Management Bhd;
• ING Funds Bhd;
• Manulife Unit Trust Bhd;
• Public Mutual Bhd; and
• RHB Investment Management Sdn Bhd.

For more information, members may visit the SC’s website or view the relevant document on the relevant document .

INLAND REVENUE BOARD (IRB) CLARIFIES ON SECTION 83A OF THE INCOME TAX ACT 1967 (THE ACT) AND BEWARE OF SYNDICATE COLLECTING TAX

Members are hereby informed that the IRB has on 10 April 2012 provided clarification pertaining to Section 83A of the Act for the purpose of preparing Form CP 58 [2011] and Income Tax Return Form (ITRF) for year 2011.

The announcement comprises the following:


a. For companies paying cash and non-cash incentives in year 2011(incentives received based on sales performance on products or services; whether or not specified in the contract) to an agent, dealer or distributor, the Form CP 58 shall be furnished to the agent, dealer or distributor not later than 31 May 2012. However, concession are granted to the paying companies for not furnishing the Form CP 58 for year 2011 provided that such information on both cash and non-cash incentives (January 2011 to December 2011) are duly declared in the annual statement issued to the agent, dealer or distributor.

Commencing from year ending 31 December 2012 and years onwards, the paying companies are required to prepare and furnish Form CP 58 to an agent, dealer or distributor, in respect of cash and non-cash incentives in excess of RM5,000.

b. For non-cash incentives, the amount disclosed shall be equivalent to the value/actual amount expended by the paying companies. As such, Items No. 2a and 2b of Part C in Guide Notes on Filling Out Form CP 58 are deleted.

c. Cash and non-cash incentives received by an agent, dealer or distributor are business income. As such, an agent, dealer or distributor is required to declare the incentives received for year 2011 in his/her 2011 ITRF.


To view the announcement, please refer to the IRB's website at the following link:http://www.hasil.gov.my/pdf/pdfam/PENGUMUMANSEK83A_1.pdf.

Submission of Income Tax Return Forms (ITRF) and Payment of Tax Through Electronic Means

Further to our e-CTIM No.33/2012 informing you of the availability of the mobile filing facility for resident individuals with no business income, the Chief Executive Officer of the Inland Revenue Board (IRB), YBhg. Dato’ Dr. Mohd Shukor B. Hj. Mahfar has written to the professional bodies on 12 April 2012 listing the electronic facilities available to taxpayers/tax agents for transactions with the IRB. In calendar year 2012, submission of ITRF via e-filing will be granted a 15-day grace period from the due date of filing.

The Inland Revenue Board (IRB) has informed that the Income Tax Return (Form BE) of a resident individual who does not carry on a business can now be submitted through m-filing.

Individual taxpayers can access the following link https://mfiling.hasil.gov.my/ to proceed with the m-BE submission of their tax returns.

For more information on the supported mobile devices, members may view the IRB’s website.

Payment of the balance of tax payable may be done through the e-Payment facility.

Customs Appeal Tribunal (CAT) – Road Show

The Customs Appeal Tribunal (CAT) was established on 1 Jun 2007 to provide an avenue for appeal against the decision of the Director General of Customs and Excise relating to the Customs Act 1967, Excise Act 1976, Sales Tax 1972 and Services Tax Act 1975. It regularly organises road shows to explain its role and functions as well as procedures for appeal.

CTIM has been invited to send 5 members to attend the Road Show, the details of which are as follows:

Date : 23 May 2012 (Wednesday)
Time : 9.00 a.m. – 11.00 a.m.

Venue :-
Bilik Mesyuarat Utama TRK
Aras 4, Perbendaharaan 2,
No.7, Persiaran Perdana,
62592 Putrajaya.

The Institute encourages members who provide indirect taxation services to attend the briefing.

Members interested in participating in the Road Show may register with the Institute on a first-come first-served basis.

IRB’s Website Announcement – Clarification on Section 83A

Following the submission by CTIM and a dialogue with the Inland Revenue Board (IRB) on issues relating to Form CP58, the IRB has issued a clarification on Section 83A for the purpose of preparing Form CP58 and Income Tax Return Form for the year 2011.

The issues clarified are as follows:-

1. For companies paying cash and non-cash incentives (based on sales performance, whether or not specified in the contract) to an agent, dealer or distributor, Form CP58 must be furnished to the agent, dealer or distributor not later than 31 May 2012 (for the year 2011). However, the payers are granted exemption from having to furnish Form CP58 in the year 2011 provided that the annual statement (January 2011 to December 2011) issued to the agent, dealer or distributor contains information on both cash and non-cash incentives.

From the year end 31/12/2012 and subsequent years, the payer has to prepare and furnish Form CP58 to an agent, dealer or distributor for cash and non-cash incentives in excess of RM5,000.

2. For non-cash incentives, the amount required to be disclosed is the value/actual payment expended by the payer for such incentives. Items 2a and 2b of Part C in the Guidance Notes for Filling Form CP58 are hereby deleted.


3. The cash and non-cash incentives received by an agent, dealer or distributor are treated as business income. An agent, dealer or distributor is required to report the incentives received for 2011 in the Income Tax Return Form 2011.

The Institute is seeking further clarification on several practical issues and will inform members in due course.

Members may view the Clarification on Section 83A at www.hasil.gov.my

IRB Media Release – Expedite Tax Refund

The Inland Revenue Board (IRB) has promised in a media release issued on 22 March 2012, to expedite tax refund for taxpayers who file their Income Tax Return Forms (ITRF) via e-Filing, provided that the name, identity card number and bank account information of the taxpayers are in order.

The use of Electronic Fund Transfer (EFT) has enabled the IRB to reduce the time taken for processing a refund to less than 30 days as stipulated in the Client Charter. Based on their records, the IRB stated that in 2011 only 24% of refund cases were made via EFT. The IRB cited various factors that caused a delay in the processing of tax refund as follows:-

i) Taxpayers are reluctant / hesitant to disclose their bank information in their ITRFs.

ii) The details of bank accounts provided by taxpayers are invalid, or the accounts are inactive or closed.

iii) The details such as the name or identity card number or passport number disclosed to the IRB do not match the bank records.

Members may view the Media Release at IRB’s website.

IRB Media Release - Beware of Syndicate Collecting Tax

The Inland Revenue Board (IRB) has alerted all taxpayers that they should beware of a syndicate collecting income tax. Two cases have been reported so far, one each in Seremban and Kota Bharu, in which the members of the active syndicate disguised as IRB officers called the taxpayers demanding payment of outstanding taxes. The taxpayers were informed that if they settled the tax by the following day at the taxpayers’ premises, a 50% discount of the tax would be given.



The IRB informs that there is no such operation of collecting taxes from taxpayers at their premises and urges all taxpayers to be more vigilant when receiving any call, e-mail or SMS purportedly from the IRB officials.



Taxpayers are reminded that all income taxes are payable to the Director General of Inland Revenue through payment counters of IRB offices and selected banks, and online.



Please refer to the IRB website (www.hasil.gov.my) or call 1-300-88-3010 for further information.

Practising Certificate

The Chartered Tax Institute of Malaysia (CTIM) has been issuing Practising Certificates for existing Tax Practitioners as provided for in the Memorandum and Articles with effect from 1st of January 2012. CTIM would also be implementing a 1 day Public Practise Course for new Public Tax Practioners. Those members who are currently in practise are to apply for the Practising Certificate but are not required to attend the 1 day Public Practise Course. The applications must be received by CTIM on or before 30th June 2012. Practising Certificates will be issued annually and will expire on the same date as the S153 license.

Those who commence practise after 1st July 2012 are required to attend the 1 day Public Practise Course and fulfil the required conditions in order to be eligible to apply for the Practising Certificate.

Attached below are the criteria and the rules governing the issue of the practising certificates.


Eligibility Criteria for Practising Certificate

To be eligible for a Practising Certificate, members must adhere to the following requirements.

• A member must possess a valid tax licence issued by the Ministry of Finance under Section 153 of the Income Tax Act 1967.

• A member must have attended and completed the one day Public Practice Course. Members who are currently in practise are not required to attend this Course.

• A new member must commence tax practise within 6 months as a sole proprietor, partner or director of the tax practice. A member issued with a practising certificate but unable to commence practice within 6 months is required to surrender the practising certificate to the Institute immediately upon the expiry of the period.

• The certificate can be issued for a period of one to three years whereupon the annual practising certificate fee shall become due and payable. However, the issuance is subject to adherence of the member’s conduct as governed by the Rules and Regulations on Professional Conduct and Ethics of the Institute.

• A member shall cease to be entitled to a practising certificate if he fails to pay the renewal fee before expiry of the licence when it becomes due and payable.

• A member must provide evidence of existence of office and contact address (es).

• A member must provide proof of full payment of membership subscription and practising licence fees.

• A member should possess valid professional indemnity insurance within 6 months from the date the Practising Certificate is issued. The Institute will assist the member to apply for such insurance if required.

• All eligible members are to apply for a Practising Certificate to conform with the Articles of Association.

Practising Certificate Fee

The Committee proposes that an annual fee of RM100 or part thereof be imposed on the application and issuance of a practising certificate. This is to run concurrently with section 153 licence

Condition attached to the Practising Certificate

The Practising Certificate however remains the property of the Institute and must be returned to the Institute at anytime the holder ceases to be entitled to thereon under the Institute’s regulations and the Professional Conduct & Ethical Behaviour.

Proposed Implementation Date

The implementation date of the Practising Certificate will be from January 2012.

Survey: Goods and Services Tax (GST) – Business Readiness

The Ministry of Finance (MOF) is making preparations for the implementation of the Goods and Services Tax (GST).

To ensure organised, efficient and proper implementation, the Tax Review Panel of the MOF is collecting feedback on the readiness of the industries/businesses towards the implementation of GST, particularly in respect of human resource requirements, training, computer cost and system determination, and the need for any assistance, before the implementation of GST later.

Members are encouraged to make time to complete the attached survey form, provided by MOF, and return it to the CTIM Secretariat on or before 12 April 2012. The feedback is invaluable as it would affect policy decisions.



CTIM will present your feedback to MOF at a meeting to be convened by MOF soon on the matter.



CTIM greatly appreciates the attention and cooperation of its members in taking part in the survey.



For your convenience, please scan your response (the completed survey form) and email to

kim@ctim.org.my, or Nadia@ctim.org.my, or Yamuna@ctim.org.my or fax to 03-2162 8990 or 03-2161 3207.