Further to our e-CTIM No.68/2011, please be informed that the Securities Commission Malaysia (SCM) has on 18 January 2013, provided the updated list of schemes approved for sale under the PRS. The schemes are as follows:-
1. CIMB-Principal PRS Plus;
2. CIMB Islamic PRS Plus;
3. Hwang Private Retirement Scheme;
4. Manulife PRS NESTEGG Series;
5. Public Mutual Private Retirement Scheme-Conventional Series;
6. Public Mutual Private Retirement Scheme-Shariah-based Series; and
7. RHB Retirement Management Sdn. Bhd.
Members may view the information provided on the SCM website.
Wednesday, 23 January 2013
Monday, 21 January 2013
Customs (Prohibition of Imports) Order 2012 [P.U. (A) 490/2012]
The Order which comes into
operation on 1 March 2013 provides details of goods prohibited from being
imported. Further information, including description of goods, countries
involved and manner of import are explained in the following Schedules:-
Item No.
|
Schedule
|
Details
|
i.
|
First Schedule
|
Goods the import of which is absolutely prohibited.
|
ii.
|
Part I of the Second Schedule
|
Goods which may not be imported into Malaysia except under an Import
Licence.
|
Iii
|
Part II of the Second Schedule
|
Goods which may not be imported into Malaysia except under an Import
Licence and shall not apply to the specified free zones.
|
iv.
|
Part III of the Second Schedule
|
Goods which may not be imported into Malaysia except under an Import
Licence and shall not apply to Labuan, Langkawi and Tioman and the specified
free zones.
|
v.
|
Part I of the Third Schedule
|
Goods which may not be imported into Malaysia except in the manner
provided.
|
vi.
|
Part II of the Third Schedule
|
Goods which may not be imported into Malaysia except in the manner
provided and shall not apply to the free commercial zones.
|
vii.
|
Part III of the Third Schedule
|
Goods which may not be imported into Malaysia except in the manner
provided and applicable to goods in transit controlled under the
International Trade In Endangered Species Act 2008 [Act 686].
|
viii.
|
Part I of the Fourth Schedule
|
Goods which may not be imported into Malaysia except confirming to the
Malaysian standards and / or other standards approved by the Malaysian
Authorities and in the manner provided.
|
ix.
|
Part II of the Fourth Schedule
|
Goods which may not be imported into Malaysia except confirming to the
Malaysian standards and / or other standards approved by the Malaysian
Authorities and in the manner provided and does not apply to the free
commercial zones.
|
The Customs (Prohibition of Import) Order 2008 [P.U. (A) 86/2008] is revoked.
The Order which comes into
operation on 1 March 2013 provides details of goods prohibited from being
exported. Further information,
including description of goods, destinations and manner of export are explained
in the following Schedules:-
Item
No.
|
Schedule
|
Details
|
i.
|
First Schedule
|
Goods the export of which is absolutely
prohibited.
|
ii.
|
Second Schedule
|
Goods which may not be exported except under
an Export Licence.
|
iii.
|
Part I of the Third Schedule
|
Goods which may not be exported except in
the manner provided.
|
iv.
|
Part II of the Third Schedule
|
Goods which may not be exported except in
the manner provided for goods controlled under the International Trade In
Endangered Species Act 2008 [Act 686].
|
Thursday, 17 January 2013
CALL FOR POLICY ISSUES - TO BE RAISED IN THE CUSTOMS-PRIVATE SECTOR CONSULTATIVE PANEL (CPSCP) MEETING NO.1/2013
CTIM has been invited to attend the next customs-Private Sector Consultative Panel Meeting with the Royal Malaysian Customs (RMC), which will be held soon.
In this connection, members are invited to raise relevant policy issues relating to indirect taxation for deliberation at the Technical Committee Indirect Taxation, and, where appropriate, for inclusion in the Memorandum to be submitted for discussion at the Customs-Private Sector Consultative Panel Meeting.
Your feedback should indicate the issue, and the rationale of your proposal. It should reach us not later than 25 January 2013. You may submit your feedback via email to secretariat@ctim.org.my or technical@ctim.org.my . Alternatively you may fax to the Institute at 03-2162 8990 or 2161 3207.
In this connection, members are invited to raise relevant policy issues relating to indirect taxation for deliberation at the Technical Committee Indirect Taxation, and, where appropriate, for inclusion in the Memorandum to be submitted for discussion at the Customs-Private Sector Consultative Panel Meeting.
Your feedback should indicate the issue, and the rationale of your proposal. It should reach us not later than 25 January 2013. You may submit your feedback via email to secretariat@ctim.org.my or technical@ctim.org.my . Alternatively you may fax to the Institute at 03-2162 8990 or 2161 3207.
Wednesday, 16 January 2013
INCOME TAX (ACCELERATED CAPITAL ALLOWANCE) (SECURITY EQUIPMENT AND MONITORING EQUIPMENT) RULES 2013 [P.U.(A) 4/2013]
The above Rules dated 28 December 2012 are effective from the year of assessment 2013 till the year of assessment 2015 except for Rule 7 (relating to non-application of the Rules), which has effect till the year of assessment 2017.
Application (Rule 3)
The Rules apply to:
b. A cargo lorry bearing Carrier Licence A or C
The list of security equipment and monitoring equipment to which the Rules apply are specified in the Schedule to the Rules.
Rates of allowance (Rules 5 and 6)
The rates of allowance allowed under the Rules are:
Rule 7(1) states that the Rules shall not apply in respect of an individual or company if the individual or company :
a) has been granted any incentive under the Promotion of Investments Act 1986;
b) has been granted reinvestment allowance under Schedule 7A of the Income Tax Act 1967 (ITA);
c) has been granted any exemption under section 127 of the ITA; or
d) qualifies for an allowance at a higher fraction under the ITA or any rules made under section 154 of the ITA.
Rule 7(2) provides for the withdrawal of any allowance which has been allowed under Rules 5 and 6 in the basis period for a YA in a situation where, in that basis period, the individual or company sells, conveys, transfers, assigns or alienates the security control or monitoring equipment with or without consideration, within two years from the date of purchase of the equipment.
Members may read the full text of the Rules at the Attorney General Chamber's official portal under e-Federal Gazette.
The Rules apply to:
(a) a resident individual, in respect of capital expenditure incurred on a business in the basis period for a year of assessment (YA), for the installation of any security control equipment and monitoring equipment (other than a Global Positioning System (GPS) for vehicle tracking) in a building or permanent structure used for the purpose of that business; or
(b) a resident company incorporated under the Companies Act 1965, in respect of capital expenditure incurred on a business, in the basis period for a YA, for the installation of the following equipment:
i. Any security control equipment and monitoring equipment (other than a GPS for vehicle tracking) for a factory of the company, provided that the company is approved under the Industrial Coordination Act 1987;
ii. Any GPS for vehicle tracking for the following vehicles used for the purpose of the business of the company :
a. A container lorry bearing Carrier Licence A andb. A cargo lorry bearing Carrier Licence A or C
issued under the Commercial Vehicles Licensing Board Act 1987.
iii. Any security control equipment and monitoring equipment other than a GPS for vehicle tracking, in residential areas.
The rates of allowance allowed under the Rules are:
- Initial allowance - one-fifth of capital expenditure incurred (20%) [Rule 5];
- Annual allowance - four-fifths of capital expenditure incurred (80%) [Rule 6].
b) has been granted reinvestment allowance under Schedule 7A of the Income Tax Act 1967 (ITA);
c) has been granted any exemption under section 127 of the ITA; or
d) qualifies for an allowance at a higher fraction under the ITA or any rules made under section 154 of the ITA.
Members may read the full text of the Rules at the Attorney General Chamber's official portal under e-Federal Gazette.
Tuesday, 15 January 2013
Direct Taxation
This Order grants exemption to a company resident in Malaysia which is licensed under the Tourism Industry Act 1992 to carry on a tour operating business, from the payment of income tax in respect of the statutory income derived from group inclusive tours.
Group inclusive tour means a tour package to or of Malaysia or any place within Malaysia undertaken by tourists from outside Malaysia, inclusive of transportation by air, land or sea and accommodation.
The exemption is only available if the total number of tourists from outside Malaysia in group inclusive tours is not less than seven hundred and fifty in the basis period for a year of assessment as certified by the Ministry of Tourism Malaysia.
Members may read the full text of the Order at the Official Portal of e-Federal Gazette.
II) In this context, members may refer to e-CTIM No. 186
of 2012 dated 24 December 2012, which provided information on Income Tax (Exemption) (No.11) Order 2012
[P.U.(A) 451/2012] on domestic tour packages.
Finance Act 2013 (Act 755) gazetted on 10 January 2013
Please be informed that the Finance Act 2013 (Act 755) was gazetted on 10 January 2013.
For details, you may view the Finance Act 2013 (Act 755) at the following link http://www.federalgazette.agc.gov.my/outputaktap/20130110_755_BI_Akta%20Kewangan%202013%20(BI).pdf
For details, you may view the Finance Act 2013 (Act 755) at the following link http://www.federalgazette.agc.gov.my/outputaktap/20130110_755_BI_Akta%20Kewangan%202013%20(BI).pdf
Monday, 14 January 2013
Filing Programme for Income Tax Return Forms (ITRF) in the Year 2013
Please be informed that the 2012 Filing Programme will continue to be effective until the 2013 Filing Programme is issued by Inland Revenue Board (IRB).
Members may view the IRB letter at the Institute抯 website.
Members may view the IRB letter at the Institute抯 website.
Tuesday, 8 January 2013
ASEAN INFRASTRUCTURE FUND LIMITED (AIF) - TAX EXEMPTIONS
The Asian Development Bank (ADB) and nine ASEAN countries have recently set up the ASEAN Infrastructure Fund Limited (AIFL) in Malaysia for the purpose of funding the region's infrastructure needs. The AIFL is incorporated as a Labuan company limited by shares under Section 15(3) of the Labuan Companies Act 1990.
The following tax exemptions have been accorded to AIFL by the Malaysian Authorities:
The following tax exemptions have been accorded to AIFL by the Malaysian Authorities:
The Order grants exemption on the following:-
(a) the ASEAN Infrastructure Fund Limited (AIFL) from all provisions of the
Act; and
(b) a non-resident employee from payment of income tax on all gains or
profits derived from his
employment with AIFL.
This Order is deemed
to have come into force on 24 April 2012.
The AIFL shall
be treated as a non-resident for the purposes of the Exchange Control Act 1953
(ECA) and all transactions undertaken by AIFL in carrying out its purposes and
functions are exempt from the obligations and prohibitions imposed under the
ECA, except for three that are listed in the order.
This Order comes into operation on 24 April 2012
The Order
exempts the ASEAN Infrastructure Fund Limited from all provisions of the Act in
respect of any disposal of chargeable assets after 24 April 2012.
The Order exempts all instruments executed by the ASEAN Infrastructure Fund
Limited (AIFL) where the stamp duty due under the Stamp Act 1949 would
ordinarily be payable by AIFL are exempted from such stamp duty chargeable
under the Stamp Act 1949.
The Order exempts the ASEAN Infrastructure Fund Limited from all
provisions of the Act.
Members may view further details of the ASEAN Infrastructure
Fund at the Asian Development Bank website (http://www.adb.org/projects/documents/asean-infrastructure-fund-rrp).
MALAYSIAN TAX RESEARCH FOUNDATION (MTRF)
The Chartered Tax Institute of Malaysia
(CTIM) has promoted the formation of a trust body called the Malaysian Tax
Research Foundation (Foundation) on 11 June 2011 under the provisions of the
Trustees (Incorporation) Act, 1952. The Foundation is a body corporate separate and distinct from
CTIM.
The Foundation is specifically created for
the promotion, encouragement and advancement of tax research in Malaysia and is currently the only such
body in Malaysia. The objectives of the Foundation include the following:
- To put Malaysia in the forefront of taxation-related studies, through promoting an interest in tax research amongst Malaysians, by providing assistance in tax-related research work.
- To bridge the divergence between taxation law
and accounting standards.
- To undertake research on the impact of any
proposals for changes in tax legislation and tax administration.
- To provide scholarships to those undertaking
tax research in universities.
- To encourage and promote the advancement of
knowledge in taxation.
- To carry out such other legally charitable
purposes for the advancement of education and training in the tax
profession.
- To cooperate with other bodies and
institutions with similar aims and objectives.
- To publish and disseminate literature on
advancement of taxation.
The Foundation is independent from CTIM and is managed by six Trustees - eminent representatives of the tax profession
and their respective organisations - Datuk Aziyah Bahauddin, Tan Sri
Dato' Hasmah Abdullah, Mr SM Thanneermalai, Mr Khoo Chin Guan, Dr Veerinderjeet
Singh and Dr Yeah Kim Leng. The Foundation is now embarking on various activities to meet its
objectives, one of which being the promotion of the Foundation to its key
stakeholders, including, but not limited to, professional tax practitioners and
accountants, industry leaders and their respective organisations, academicians
and educational institutions and the policy makers. Several broad areas of research which have been identified include:
- A survey of tax research in Malaysia and
suggestions for future direction.
- Evaluation of the effectiveness of the various
fiscal incentives accorded by the Government.
- Comparative study of individual taxation
regime, in particular, the tax reliefs, tax bands structure, and tax
rates, and its effect on attracting talents to Malaysia.
- Evaluation of tax measures relating to environmental protection.
The Trustees are seeking
funding contributions, ideas and proposals from its like-minded stakeholders
and look forward to your support
in achieving the ultimate success of the Foundation. The Inland Revenue Board has approved the Foundation's application under Section 44(6) whereby donations made to the Foundation
are tax deductible for the donors, and are exempted from tax in the hands of the Foundation.
The Foundation is
one of the initiatives by CTIM to advance the interest of the tax
profession. We strongly encourage
members to support the Foundation financially by making monetary contribution(donation) and to provide ideas for research
proposals. Please contact the Trustees/ Foundation secretariat at the
CTIM office: Tel: +603-2162 8989, Fax: +603-2162 8990 or email: secretariat@ctim.org.my.
Direct Taxation
Please be informed that the Inland Revenue Board (IRB) has uploaded Public Rulings (PR) No.11/2012 and No.12/2012 dated 13 December 2012 and 24 December 2012 respectively. Members may view the Public Rulings on the websites of the Institute and the IRB.
PR No.11/2012: Employee Share Scheme Benefit
This Public Ruling illustrates, with examples, the tax treatment in respect of a benefit arising from employee share schemes received by an employee from his employer by reason of his employment. The PR replaces PR No.4/2004: Employer Share Option Scheme Benefit, issued on 9 December 2004.
PR No.12/2012: Share Schemes Benefit For Cross-Border Employees
The objective of this PR is to explain the tax treatment in respect of a benefit arising from an employee share scheme received by:-
(a) employees from Malaysia who are seconded to work overseas, and
(b) foreign national employees who are seconded to Malaysia.
We would be pleased if you could let us have your feedback and/or enquiry, so that we may raise it to the IRB.
PR No.11/2012: Employee Share Scheme Benefit
This Public Ruling illustrates, with examples, the tax treatment in respect of a benefit arising from employee share schemes received by an employee from his employer by reason of his employment. The PR replaces PR No.4/2004: Employer Share Option Scheme Benefit, issued on 9 December 2004.
PR No.12/2012: Share Schemes Benefit For Cross-Border Employees
The objective of this PR is to explain the tax treatment in respect of a benefit arising from an employee share scheme received by:-
(a) employees from Malaysia who are seconded to work overseas, and
(b) foreign national employees who are seconded to Malaysia.
We would be pleased if you could let us have your feedback and/or enquiry, so that we may raise it to the IRB.
Sunday, 6 January 2013
New Publications - Resource Centre
The Institute is pleased to inform that the following publications are
now available in the Resource Centre (for reference only). Members are
encouraged to use the facilities available.
No.
|
Reference
Books
|
Arthur
/ Editor
|
Publisher
|
Year
|
|
Handbook Series
|
|||||
1.
|
European Tax
Handbook
|
Juhani Kesti, LL M
Chief Editor Europe,
|
IBFD
|
2009
|
|
2.
|
Global Individual
Tax Handbook
|
Nick Cowley,
Carlos Guitierrez,
Juhani Kesti,
Mei-June Soo,
|
IBFD
|
2009
|
|
3.
|
Latin American Tax Handbook
|
Carlos Guitierrez
|
IBFD
|
2009
|
|
4.
|
North American Tax Handbook
|
J.G. Rienstra & K.R. Irby
|
IBFD & BNA
|
2009
|
|
5.
|
Global Individual
Tax Handbook
|
Carlos Guitierrez P.,
Ridha Hamzaoui,
Juhani Kesti,
John G.Rienstra,
Mei-June Soo,
Ola van Boeijen - Ostaszewska
|
IBFD
|
2010
|
|
6.
|
Global Corporate
Tax Handbook
|
Carlos Guitierrez P.,
Ridha Hamzaoui,
Juhani Kesti,
John G.Rienstra,
Mei-June Soo,
Ola van Boeijen - Ostaszewska
|
IBFD
|
2010
|
|
7.
|
Global Corporate Tax Handbook
|
Carlos Guitierrez P.,
Ridha Hamzaoui,
John G.Rienstra,
Mei-June Soo,
Ola van Boeijen - Ostaszewska
|
IBFD
|
2011
|
|
8.
|
Global Individual Tax Handbook
|
Carlos Guitierrez P.,
Ridha Hamzaoui,
John G.Rienstra,
Mei-June Soo,
Ola van Boeijen - Ostaszewska
|
IBFD
|
2011
|
|
9.
|
European Tax Handbook
|
Ola Van Boeijen - Ostaszewska
|
IBFD
|
2011
|
|
Books on Malaysian Taxation
|
|||||
10.
|
Malaysian Taxation Principles and Practice
|
Choong Kwai Fatt
|
InfoWorld Malaysia
|
2012
|
|
11.
|
Advanced Malaysian Taxation Principles and Practice
|
Choong Kwai Fatt
|
InfoWorld Malaysia
|
2012
|
|
12.
|
Islamic Finance Tax Considerations Around the World
|
PWC
|
2012
|
||
13.
|
Laws of Malaysia
|
MDC Publishers
|
2012
|
||
14.
|
Excise Act & Regulations
|
MDC Publishers
|
2008
|
||
15.
|
Tax Avoidance, Evasion and Planning in Malaysia
|
Dr Jeyapalan Kasipillai
|
CCH
|
2012
|
|
16.
|
Income Tax Deductions for Businesses Malaysia
|
Vincent Josef
|
CCH
|
2011
|
|
Doctorial Series
|
|||||
17.
|
Taxation of
International Performing Artistes
|
Dick Molenaar
|
IBFD
|
2005
|
|
18.
|
Dispute Resolution
under Tax Treaties
|
Zvi Daniel Altman
|
IBFD
|
2005
|
|
19.
|
Income from
International Private Employment
|
Frank Potgens
|
IBFD
|
2006
|
|
International Tax Planning
Series
|
|||||
20.
|
Luxembourg
|
Philip J.Warner
|
IBFD
|
2004
|
|
21.
|
Denmark
|
Nikolaj Bjornholm,
Anders Oreby Hansen,
|
IBFD
|
2005
|
|
22.
|
Hungary
|
Daniel Deak
|
IBFD
|
2003
|
|
23.
|
Ireland
|
Charles Haccius, BL
|
IBFD
|
2004
|
|
24.
|
Belgium
|
Patrick A.A.Vanhaute
|
IBFD
|
2004
|
|
OECD Publications
|
|||||
25.
|
Transactional Profit Methods Discussion Draft for
Public Comment
|
2008
|
|||
26.
|
Revised Commentary on Article 7 of the OECD Model
Tax Convention
|
2007
|
|||
27.
|
Transfer Pricing Aspects of Business Restructurings:
Discussion Draft for Public Comment
|
2008 - 2009
|
|||
28.
|
Report on the Attribution of Profits to Permanent
Establishments
|
2008
|
|||
Others
|
|||||
29.
|
The New Netherlands Transfer Pricing Regime
|
Dr Rijkele Betten
|
IBFD
|
2002
|
|
30.
|
Taxation and the Financial Crisis
|
Julian S. Alworth,
Giampaolo Arachi
|
Oxford University Press
|
2012
|
|
31.
|
Model Tax Convention on Income and on Capital
|
OECD
|
2010
|
||
32.
|
OECD Model Tax
Convention on Income and on Capital (Condensed version–2005) AND Key Tax Features of Member
Countries
|
Tiago Cassiano Neves
|
IBFD
|
2007
|
|
33.
|
OECD Model Tax Convention on Income and on Capital (Condensed
version–2010) AND Key Tax Features
of Member Countries
|
Luis Nouel
|
IBFD
|
2011
|
|
34.
|
OECD Transfer Pricing Guidelines for Multinational Enterprise and Tax
Administrations (2010 Edition) AND Transfer
Pricing Features of Selected Countries
|
Kamesh Susarla (IBFD),
Antoine Glaze (Taxand)
|
IBFD
|
2011
|
|
35.
|
National Land Code (Act No.56 of 1965)
|
Lexis Nexis
|
MLJ Statute Series
|
2011
|
|
36.
|
Tax Agents Manual
|
John Gaal
|
CCH
|
2009
|
|
The following publications are also available in Compact Disc (CD)
format:-
International Fiscal Association Congress Report
|
|||
No.
|
Title
|
Place
|
Year
|
1.
|
i) Taxation of income derived from electronic commerce
(Vol. 86a)
ii) Limits on the use of low-tax regimes by
multinational businesses: current / measures and emerging trends (Vol. 86b)
|
San Francisco
|
2001
|
2.
|
i) Form and substance in tax law (Vol. 87a)
ii) The tax treatment of transfer of residence by
individuals (Vol. 87b)
|
Oslo
|
2002
|
3.
|
i) Trends in company / shareholder taxation :
Single or double taxation? (Vol. 88a)
ii) Consumption taxation & financial services (Vol.
88b)
|
Sydney
|
2003
|
4.
|
i) Double non-taxation (Vol. 89a)
ii) Group taxation (Vol. 89b)
|
Vienna
|
2004
|
5.
|
i)
Source and residence : new configuration of their
principles (Vol. 90a)
ii) Tax treatment of international acquisitions of
businesses (Vol. 90b)
|
Buenos Aires
|
2005
|
6.
|
i)
The tax consequences of restructuring of
indebtedness (debt work-outs) (Vol. 91a)
ii) The attribution of profits to permanent
establishments (Vol. 91b)
|
Amsterdam
|
2006
|
7.
|
i)
Transfer pricing and intangibles; (Vol. 92a)
ii) Conflicts in the attribution of income to a person
(Vol. 92b)
|
Kyoto
|
2007
|
8.
|
i) Non-discrimination at the crossroads of
international taxation (Vol. 93a)
ii) New tendencies in tax treatment of cross-border
interest of corporations (Vol. 93b)
|
Brussels
|
2008
|
9.
|
i) Is there a permanent establishment? (Vol. 94a)
ii) Foreign exchange issues in international taxation
(Vol. 94b)
|
Vancouver
|
2009
|
10.
|
i)
Tax treaties & tax avoidance: application of
anti-avoidance provisions (Vol. 95a)
ii) Death as a taxable event and its international
ramifications (Vol. 95b)
|
Rome
|
2010
|
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