MEMBERS’ TECHNICAL ROUND TABLE DISCUSSION, 8 OCTOBER 2013 - CALL FOR ISSUES

We refer to the e-CTIM PP No. 2/2013 requesting members to provide issues for the members’ technical round table discussion. Please be informed that the deadline for submitting issues has been extended to 16 September 2013.

You may forward your issues, via email to technical@ctim.org.my or you may fax to the Institute at 03-2162 8990 or 2161 3207.

CLOSURE OF IRB OFFICES & COUNTERS DURING HARI RAYA FESTIVAL

All the offices (except for Kelantan and Terengganu) of the Inland Revenue Board (IRB) including Tax Consultation Counters, Tax Payment Counters, Stamp Duty Counters, Contact Centres, Revenue Service Centres [RSC], and Urban Transformation Centre [UTC] service counters will be closed for the Hari Raya Aidilfitri Celebration from 7 August 2013 (Wednesday) to 11 August 2013 (Sunday). The IRB offices and service counters will resume operations on 12 August 2013 (Monday).

For the IRB offices in Kelantan & Terengganu, the closure will be from 7 August 2013 (Wednesday) to 10 August 2013 (Saturday) and operations will resume on 11 August 2013 (Sunday).

During the closure, taxpayers may still conduct their tax affairs online through ezHASiL facilities at www.hasil.gov.my.

EXTENSION OF TIME FOR PAYMENT THROUGHOUT THE COUNTRY

In view that the closure coincides with the deadline for remission of Monthly Tax Deductions (MTD) (on the 10th day of each month), a concession is granted as follows: all tax payments that are due by 10 August 2013 (Saturday), including MTD, etc. are to be remitted to the IRB not later than 13 August 2013 (Tuesday).

Members may view the Media Release and Announcement at the websites of the Institute and the IRB.

Purchase of Personal Computer under Paragraph 46(1)(J) Income Tax Act 1967

Definition of Computer -- IRB Announcement

The IRB has uploaded on its website on 31 July 2013 that the personal deductions on expenses incurred in the purchase of personal computer under Section 46(1)(j) Income Tax Act 1967 shall be confined to the purchase of the following not used for the purpose of a business:

· Desktop computer;

· Laptop computer;

· Notebook; and

· Ultrabook.

The tax deduction will not cover expenses incurred in acquiring gadgets that may perform functions similar to a computer, for example, tablets, smartphones, etc.

The above treatment is effective from Year of Assessment (YA) 2013, As a concession, a claim for deduction for purchase of computer other than those indicated above, made prior to YA 2013 will not be withdrawn.

Members may view this Announcement at the websites of the Institute and the IRB.

IRB Announcement – E-Filing System Disruption

The Inland Revenue Board (IRB) has announced that all e-Filing systems will be disrupted during maintenance of the e-Filing systems, as scheduled below:

Date	Time
19 July 2013 (Friday)	3.00 p.m. – 6.00 p.m.
20 July 2013 (Saturday)	8.00 a.m. – 6.00 p.m.

During the period all applications related to the Digital Certificate will not be accessible.

Members may view this Announcement at www.hasil.gov.my or alternatively at e-HASiL.

Labuan Business Activity Tax (Forms) Regulations 2013 [P.U. (A) 224/2013]

Pursuant to S.21 of the Labuan Business Activity Tax 1990 (Act 445), the Minister makes the above Regulations, which were gazetted on 12 July 2013.

1. Effective date – These Regulations are deemed to have effect from 11 February 2010.

2. Revocation – The Labuan Offshore Business Activity Tax (Forms) Regulations 1991 [P.U. (A) 157/1991] are revoked.

3. Forms – The “Forms” to be used for the purposes of the Act shall be those appearing in the Schedule as summarized below:

Form	Details
Form 1	Return of Profits by a Labuan Entity (Section 5)
Form 2	Notice of Assessment for a Labuan Entity (Section 6)
Form 3	Election by a Labuan Entity (Section 7)
Form 4	Notice of Demand to a Labuan Entity (Section 13)
Form 5	Statutory Declaration (Sections 5/7/8)
Form 6	Statutory Declaration (Section 10)
Form 7	Remittance Form - Payment of Tax for the Year of Assessment 20……
Form 8	Election by A Labuan Entity (Section 3A)
Form 9	Application for Advance Ruling (Section 17B)

You may write to the Institute at technical@ctim.org.my or secretariat@ctim.org.my in respect of any concern or comments you may have on the Regulations.

IRB Operating Hours during Ramadhan (Fasting Month)

The operating hours of Inland Revenue Board (IRB) during the fasting month (beginning from 10 July, subject to confirmation) will be from 7.30 a.m. to 5.00 p.m. The IRB also informs that during the Ramadhan, its afternoon break time will be shortened from one hour to 30 minutes. Nevertheless, taxpayers can still manage their taxation matters via the electronic services provided by IRB at www.hasil.gov.my.

Members may view the Media Release at the websites of the Institute and IRB.

The English Version of IRB Tax Audit Framework 2013

1) The English Version of IRB Tax Audit Framework 2013

Further to our e-CTIM TECH 58-2013, the IRB Tax Audit Framework 2013 is now available in English. Members may view the Framework at the websites of the Institute and the IRB.

2) Income Tax (Deduction For Cost Of Acquisition Of Foreign Owned Company) Rules 2013 [P.U. (A) 218/2013]

The above Rules were gazetted on 4 July 2013, and are deemed to have come into operation on 3 July 2012. Members may view the Rules at e-Federal Gazette of the Attorney General’s Chamber’s website.

Relocation of Alor Setar Investigation Branch of Inland Revenue Board (IRB)

Please be informed that the Alor Setar Investigation Branch of Inland Revenue Board (IRB) will begin to move to the following address on 8 July 2013 (Monday):-

Inland Revenue Board of Malaysia,

Alor Setar Investigation Branch,

3rd Floor, Wisma PERKESO

Jalan Telok Wanjah,

05200 Alor Setar, Kedah Darul Aman.

General Line: 04-7349115

Fax No.: 04-7322230

Members may view the Announcement at the IRB website.

GUIDELINES RELATING TO FORM CP58

The Inland Revenue Board (IRB) has issued the following guidelines (in Bahasa Malaysia) on 1 July, 2013 to provide guidance on the duty to submit particulars of payments to agents, dealers and distributors in Form CP58, as required under S.83A of the Income Tax Act 1967 (ITA):

Garis Panduan Berkaitan Tanggungjawab Mengemukakan Butiran Bayaran Kepada Ejen, Pengedar Atau Pengagih Dalam Borang CP58 Bagi Maksud Peruntukan Di bawah Section 83A Akta Cukai Pendapatan 1967 (ACP 1987).

The following are salient points from the Guidelines:

1. Types of payments

· Payments to Agents, Dealers and Distributors, whether in monetary or non-monetary form, may represent taxable income of the recipient. Monetary payments are payments in cash, like commission and bonus. Examples of non-cash incentives are perquisites, products of the payer company, and points redemption.

2. Duties of the payer company

· The payer company is required to prepare Form CP58 (which can be downloaded from the IRB official website) for all recipients of incentives, but it is only required to provide a copy of the Form to each recipient of more than RM5,000, by 31 March of the following year.

· It is also required to keep the list of particulars of all recipients of incentives for a period of 7 years from the basis year in which the incentive is given.

3. Application

· The payer company must submit Form CP58 in the year in which the incentive is given while the recipient has to declare the amounts shown in the CP58 as income in the year the incentive is received. In general, the amount of incentives given is allowed as a deduction to the payer under S33(1) of the ITA.

· The types of incentives to be included, as found in Examples provided in the Guidelines, are listed in the table below:

Example (No.)	Type of incentive
	Cash incentive
1.	Commission paid to agents Note that paragraph 1.3 of the Guidelines refers to “commission and bonus” as examples of cash incentives.
	Non-cash incentives
2.	Tour package to New Zealand for dealers
3.	Same as above (package awarded to Dealer A is passed on to Dealer B as a gift)
4	Sponsorship of seminar for dealers
5	Residential property awarded to a dealer
6	Own product awarded to dealers by company dealing in cosmetics
7	Lucky draw for dealers for the prizes of a house, a car and a computer

· In the following examples, the filing of Form CP58 is not required:

Example (No.)	Type of incentive
	Not to be included as ‘incentives’
8	Bulk discount given by a company dealing in health products to a supermarket on the wholesale purchase of health products by the supermarket.
9	Credit rebate given to the supermarket in Example 8 for prompt payment of trade debt.
	Recipient not an ‘Agent’
10	Gift of a purse for customers under “Customer get customer” promotion by a company dealing in branded bags.

You may write to the Institute at technical@ctim.org.my or secretariat@ctim.org.my in respect of any concern or comments you may have on the Guidelines.

Additional Country Code in the Guidebooks

Please be informed that the Inland Revenue Board (IRB) has inserted the following new Country Code, between CUBA and CYPRUS, in the Guidebooks and it will be effective from 5 July 2013.

Name of Country/Country Code
CURACAO/CW

Members may view the relevant changes in the Guidebooks at the IRB website. For further enquiries please email to IRB at helpitef@hasil.gov.my. You may view a copy of the IRB email to the Institute at CTIM website.

Form e-C and Form e-R for Year of Assessment 2013 available on e-Latihan

Please be informed that Income Tax Return Forms C and R for the year of assessment 2013 have been made available on the Inland Revenue Board (IRB) e–training environment since 15 June 2013.

Software developers may now test the integration of their software with the e-filing system. The following development documentation of the said Forms, including XML file specifications, is attached for your attention.

- Integration of CTHA (Version 1.2)

- Layout C for YA 2013

- Layout R for YA 2013

- List of Bank Names

Members may view the documents at the Institute’s website. For further enquiries please email to IRB at helpitef@hasil.gov.my.

Income Tax Return Form C1, TA, TC & TR (PDF Format) for YA 2013

Please be informed that the Inland Revenue Board (IRB) has uploaded the Income Tax Return Forms (ITRF) C1, TA, TC & TR (in PDF format) for year of assessment 2013 to the IRB website.

Taxpayers and tax agents may download and print these ITRF.

Members may view the ITRF at the IRB website.

Amendment Return Forms BE, B, BT, M, MT, TP & TF (PDF Formats)

Please be informed that the Inland Revenue Board (IRB) has uploaded the amendment Return Forms BE, B, BT, M, MT TP and TF (in PDF format) to the website. Taxpayers and tax agents may download and print the amendment return forms.

Members may view the Amendment Return Forms at the IRB website.

IRB Audit Framework 2013

Please be informed that the Inland Revenue Board (IRB) has uploaded the IRB Audit Framework 2013 which is effective from 1 April 2013. The Audit Framework consists of 3 Parts:

- Part I: Tax Audit Framework

- Part II: Petroleum Audit Framework

- Part III: Transfer Pricing Framework

Members may view the IRB Audit Framework 2013 on the websites of the Institute and the IRB.

IRB Extending Operating Hours at the Payment Counters and e-Filing Counters

1) For Payment Counters at

a. Cawangan Pungutan, Tingkat Bawah, Blok 8A, Kompleks Bangunan Kerajaan, Jalan Duta, Kuala Lumpur;

b. Cawangan Kota Kinabalu; Tingkat Bawah, Wisma Hasil, Jalan Tunku Abdul Rahman, Kota Kinabalu; and

c. Cawangan Kuching Aras 1, Wisma Hasil, No. 1, Jalan Padungan, Kuching.

With effect from 19 April 2013 the operating hours for the above payment counters are extended to 5.30 p.m. on weekdays. On Saturdays and Sundays, the operating hours are from 9.00 a.m. to 5.30 p.m. The extended Operating Hours are only applicable till 30 April 2013. Members may view the Announcement at the IRB website.

Normal Working Days

Date	Day	Extended Operating Hours
19/4/2013	Friday	5.00 p.m. – 5.30 p.m.
22/4/2013 – 26/4/2013	Monday - Friday	5.00 p.m. – 5.30 p.m.
29/4/2013 – 30/4/2013	Monday - Tuesday	5.00 p.m. – 5.30 p.m.

Saturdays & Sundays

Date	Day	Extended Operating Hours
20/4/2013 – 21/4/2013	Saturday & Sunday	9.00 a.m. – 5.30 p.m.
27/4/2013 – 28/4/2013	Saturday & Sunday	9.00 a.m. – 5.30 p.m.

2) For e-Filing Counters at ALL IRB Branches

The IRB has announced that e-filing counters will operate from 9.00 a.m. to 5.30 p.m. from 26 - 28 April 2013. Please be guided accordingly. Members may view the Media Release at the IRB website.