PUBLIC RULING NO. 10/2012 - TAX TREATMENT OF A MALAYSIAN SHIP

TAX TREATMENT OF MALAYSIAN SHIP

TAX (EXEMPTION) (NO.11) ORDER 2012 [P.U.(A) 451/2012]

The Order, which has effect from the year of assessment 2013 until the year of assessment 2015, exempts 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 domestic tours.

The exemption shall only apply if the total number of local tourists on domestic tours relating to the company is not less than one thousand five hundred, certified by a letter from the Ministry of Tourism Malaysia, in the basis period for a year of assessment.

Definitions:

Domestic tour means a tour package for travel within Malaysia undertaken by local tourists inclusive of transportation by air, land, or sea and accommodation.

Local tourist means individuals who are Malaysian citizens or residing in Malaysia.

Tour operating business has the same meaning assigned to it under subsection 2(1) of the Tourism Industry Act 1992 [Act 4882].

Members may read the full text of the Order at the Official Portal of e-Federal Gazette.

IRB Media Release - Closure of e-Filing System for Year Assessment 2011

Please take note that the Inland Revenue Board (IRB) e-Filing system for e-BE, e-B, e-M, e-P, e-E, e-C and e-R for Year of Assessment 2011 will cease operations with effect from 1 January 2013.

In view of the above, taxpayers who have not furnished their returns by then will have to do so manually. Taxpayers may obtain the relevant forms from any IRB branch.

For further inquiries and assistance, members may email the IRB at e_filing@hasil.gov.my or call 1-800-88-LHDN (5436).

The IRB Media Release may be viewed at the CTIM website or the IRB website.

MIDA ONLINE APPLICATION FOR DUTY EXEMPTION USING DIGITAL CERTIFICATE

Please be informed that the Malaysian Investment Development Authority (MIDA) has its MIDA e-Services Portal to assist members of the public in applying for their manufacturing licences as well as duty exemptions.

The online applications available.

For further details, members may view the following user guides from MIDA website:


Software and Hardware Requirements
General User Guide
Application Form User Manual

INDIRECT TAX

1. Sales Tax (Rates of Tax No.1) Order 2012 [P.U. (A) 354/2012]

With effect from 31 October 2012, all goods (except goods exempt under Section 8 of the Sales Tax Act 1972 and goods imported on or with any person entering Malaysia or in the baggage of such person and intended for non-commercial use (excluding motor vehicles, alcoholic beverages, spirits, tobacco, cigarettes, tyres and tube)) shall be subject to sales tax at 10%.

The Sales Tax (Rates of Tax No.1) Order 2008 [P.U. (A) 92/2008] is revoked.

2. Sales Tax (Rates of Tax No.2) Order 2012 [P.U. (A) 355/2012

Notwithstanding the above (Sales Tax (Rates of Tax No.1) Order 2012 [P.U. (A) 354/2012], with effect from 31 October 2012, the goods appearing in

(a) The First Schedule shall not be subject to sales tax;

(b) The Second Schedule shall be subject to sales tax at 5%;

(c) The Third Schedule shall be subject to sales tax at 20%;

(d) The Fourth Schedule shall be subject to sales tax at the rate specified.

The Sales Tax (Rates of Tax No.2) Order 2008 [P.U. (A) 93/2008] is revoked.

INDIRECT TAX

I.          Sales Tax (Exemption) (Amendment) (No.4) Order 2012 [P.U.(A) 352/2012]

The Order, which is deemed to be effective from 1 January 2012, amends Schedule A of the Sales Tax (Exemption) Order 2008 [P.U. (A) 91/2008]. With effect from 1 January 2012, cash register (Point-of-sales (POS) terminal) (subheading 8470.50 000) is exempted from sales tax.

II.          Sales Tax (Exemption) (Amendment) (No.5) Order 2012 [P.U.(A) 353/2012]

The Order deletes Schedule A of the Sales Tax (Exemption) Order 2008 [P.U. (A) 91/2008] and amends paragraphs 2-4 of the Sales Tax (Exemption) Order 2008 as follows: 

Exemption from payment of sales tax

2.     Subject to paragraph 3 of this Order, the goods specified in Schedule A and the persons and goods specified in column (2) and column (3) of Schedule B or Schedule C are exempted from the payment of sales tax, subject to the conditions where applicable, as specified in Schedule B or Schedule C.

Extent of exemption

3.     The exemption referred to in paragraph 2 shall be granted in full in respect of the goods mentioned in column (3) of Schedule A and column (3) of Schedule B or Schedule C to this Order unless otherwise specified in the conditions.

Classification of goods

4.    (1)     The classification of goods specified in this Order shall comply with the Rules of Interpretation in the Customs Duties Order 2012 [P.U. (A) 275/2012].

(2)     For the purpose of Schedule A?o:p>

(a)     only goods described in column (3) shown against the tariff heading in column (2) shall be exempted. Other goods, though might be classified under the same tariff headings but which are not specified, shall not be exempted.

(b)     where the description of goods in column (3) are shown in general against the tariff headings in column (2), the exemption shall apply to all such goods as classified within that tariff headings.?o:p>

This Order came into operation on 31 October 2012.

The goods specified in Schedule A of the Sales Tax (Exemption) Order 2008 [P.U. (A) 91/2008] now appear in the First Schedule of the Sales Tax (Rates of Tax No.2) Order 2012 [P.U. (A) 355/2012].

JOINT MEMORANDUM ON ISSUES ARISING FROM 2013 BUDGET & FINANCE (NO.2) BILL 2012

Please be informed that the Chartered Tax Institute of Malaysia (CTIM) together with the Malaysian Institute of Accountants (MIA) and the Malaysian Institute of Certified Public Accountants (MICPA) have prepared and submitted a Joint Memorandum on Issues Arising From 2013 Budget and Finance (No.2) Bill 2012 to the Ministry of Finance (MOF) and the Inland Revenue Board (IRB) on 16 November 2012.

Members may view the memorandum at the Institute's website.