Income Tax (Deductions for Freight Charges) (Revocation) Rules 2012 [P.U. (A) 218/2012]

1. Income Tax (Deductions for Freight Charges) (Revocation) Rules 2012 [P.U. (A) 218/2012]

The above rules, which shall have effect from the year of assessment (YA) 2016 effectively means that the Income Tax (Deductions for Freight Charges) Rules 1990 [P.U (A) 422/1990] are revoked with effect from YA 2016.

2. Income Tax (Deductions of Insurance Premiums for Exporters) (Revocation Rules 2012 [P.U. (A) 219/2012]

The above rules, which shall have effect from the year of assessment (YA) 2016 effectively means that the Income Tax (Deductions of Insurance Premiums for Exporters) Rules 1995 [P.U. (A) 79/1995] are revoked with effect from YA 2016.

3. Income Tax (Deductions of Insurance Premiums for Importers) (Revocation) Rules 2012 [P.U. (A) 220/2012]

The above rules, which shall have effect from the year of assessment (YA) 2016 effectively means that the Income Tax (Deductions of Insurance Premiums for Importers) Rules 1982 [P.U. (A) 72/1982] are revoked with effect from YA 2016.

Code of Ethics for Tax Agents (Revised)

CTIM was informed at a recent dialogue at the Inland Revenue Board (IRB) Headquarters that the IRB had uploaded the revised Code of Ethics for Tax Agents [Kod Etika Ejen Cukai (PIN. 4/2012)] on its website.

Members may view the revised Code of Ethics for Tax Agents at the IRB website

at > Home > Tax Agents.

Registration of Businesses (Reduction of Fees for New Registration and Renewal of Registration) Rules 2012 [P.U. (A) 207/2012]

These Rules, which are effective from 1 June 2012 to 31 December 2012, stipulate that the fees for new registration and renewal of businesses shall be reduced to RM50 as a one-off payment fee for the period of 5 years.

Effectively, it means that in the period indicated, with a payment of RM50, a new business may be registered, and a further payment will be due upon renewal in the year 2017.

For more information, please refer to the relevant links as follows
Section 5 & Section 5A of the Registration of Businesses Act 1956

Rule 19 & Second Schedule of the Registration of Businesses Rules 1957

Income Tax (Exemption) (No.4) Order 2012 [P.U. (A) 209/2012]

Any gains or profits falling under paragraph 4(f) of the Income Tax Act 1967 (ITA), received by a non-resident from a Labuan entity, are exempted from income tax. Section 109F of ITA shall not apply to the income exempted under this Order.

This Order is deemed to have come into operation on 11 February 2010.

The Income Tax Exemption (No.4) Order 2009 [P.U. (A) 389/2009] published on 5 November 2009 is revoked.

MINUTES OF THE CUSTOMS-PRIVATE SECTOR CONSULTATIVE PANEL (CPSCP) MEETING NO. 1/2012 ON 2 MAY 2012 WITH THE ROYAL MALAYSIAN CUSTOMS (RMC)

Further to the Customs-Private Sector Consultative Panel Meeting No.1/2012 held on 2 May 2012, with the Royal Malaysia Customs (RMC), please be informed that members may now view the minutes of the above meeting at the Institute’s website.

Some of the new important issues discussed during the said meeting have been highlighted in agenda 7 of the above minutes and are listed below:-

• Sales Tax and / or Duties for Spare Parts of Machineries
• Customs Procedure - from Port Sepanggar to Tanjung Aru,Sabah
• One Single Customs Station Code for Port Klang
• Deconsolidation Activity at Public Bonded Warehouse
• Compound for Mistakes by Freight Forwarders
• Advance Manifest Declaration
• Red Files System for Customs Assessment
• Customs Clearance-K8 Normal Cargo at Westport and K8 critical cargo at PKFZ
• Government Departments do not Apply for CJ(P)2
• Service Tax Chargeable on Employment Service


For further details, members may refer to the above-mentioned minutes of meeting.

Service Hours of IRB Offices during the month of Ramadhan

IRB Media Release – Service Hours of IRB Offices during the month of Ramadhan

The Inland Revenue Board (IRB) has notified the public that the office hours during the month of Ramadhan will be from 7.30 a.m. to 5.00 p.m.

The public is nonetheless able to access the electronic service provided by the IRB by visiting www.hasil.gov.my for taxation matters.

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

Transfer Pricing (TP) Guidelines 2012

Transfer Pricing (TP) Guidelines 2012

Advance Pricing Arrangement (APA) Guidelines 2012

Please be informed that the Inland Revenue Board (IRB) has issued the above new guidelines on 24 July 2012.

Members may view the TP and APA guidelines on the CTIM website and the IRB website.

For further information members may contact IRB at the following email address lhdn_jcm@hasil.gov.my.

Please let us have your feedback, latest by 2 August 2012, so that we may raise it to the IRB.