Manual filing of return forms C and R for companies with financial year ending 30 June 2009 - Grace period of 14 days.

CTIM has received a verbal confirmation from the Inland Revenue Board Malaysia (IRBM) that a grace period of fourteen (14) days has been granted for the manual filing of the Forms C and R for companies with financial year ending 30 June 2009.

Gazette Orders on service tax on charge cards and credit cards

Subsequent to the 2010 Budget proposals, the above orders have been gazetted on 28 December 2009.  The Service Tax (Amendment) (No.2) Regulations 2009 [P.U.(A) 469/2009] amends the Service Tax Regulations 1975 [P.U.(A) 52/1975] (the principal Regulations) by inserting the following definitions:

“charge card”                    means a payment instrument which indicates a line of credit granted by the issuer to the user and for which any amount of the credit utilised by the user must be settled in full on or before a specified date, without any extended credit.

“credit card”                      means a payment instrument which indicates a line of credit or financing granted by the issuer to the user and for which, where any amount of the credit utilised by the user has not been settled in full on or before a specified date, the unsettled amount may be subject to interest, profit or other charges.

“payment instrument”      means any instrument, whether tangible or intangible, that enables a person to obtain money, goods or services or to otherwise make payment, as defined in the Payment Systems Act 2003 [Act 627]

Further, Subheading I, Group G, Second Schedule of the principal Regulations is amended by inserting the following to the “Taxable Person” and “Taxable Service” respectively:

“Taxable Person”

“6.     Any person who is regulated by Bank Negara Malaysia and provides credit card or charge card services through the issuance of a credit card or a charge card.”

“Taxable Service”

“t.      Provision of credit card or charge card services through the issuance of a principal credit card, principal charge card, supplementary credit card and supplementary charge card, whether or not annual subscription or fee is imposed excluding ---

(i)        provision of charge card services where the charge card is issued by any petroleum company to the Government of Malaysia or any person for the procurement of products and services supplied for the use of or in connection with vehicles owned by the Government of Malaysia or such person; or

(ii)       provision of charge card services where the charge card is used as a payment instrument only within the premises of a workplace, an education institution or a golf or sports club by its workforce, students or members, as the case may be.

The Service Tax (Rate of Tax) Order 2009 [P.U.(A) 468/2009] stipulates that service tax shall be levied on taxable service relating to credit card or charge card services at RM50.00 for each principal card and RM25.00 for each supplementary card on the date of issuance or renewal and every twelve months thereafter or part thereof after the issuance or renewal of the card.

Closure of e-filing system for years of assessment 2008 & 2009

Please be informed that the Inland Revenue Board (IRB) has informed the Institute on 2 October that

(i)         The e-filing of forms e-E, e-B, e-BE, e-M, e-P, e-C, and e-R for the year of assessment (YA) 2008 will be closed from 8 October 2009 permanently.

(ii)        The e-filing of forms e-C, e-R and e-CP 204 for the YA 2009 will be temporarily closed from 9 October 2009 till 22 October 2009 (14 days) for maintenance.

CTIM has requested the IRB to defer the “closure” (in (ii) above) to November to allow companies with financial year ended 31March 2009 to do their filing (Form e-C).  However, the IRB has informed the Institute that, due to time constraint (the Budget date, 23 October, being later than usual) and the fact that the system is operating at full capacity, the system has to be shut down for maintenance to prepare for the proposals for the 2010 Budget.  Otherwise, it will too late for the IRB to work on the 2010 Budget amendments.

Members may view the IRB letter at the Institute’s website at http://ctim.org.my/technical_techdev_direct.asp.

List Of Taxable And Non-Taxable Services For The Purposes Of Service Tax

The Royal Customs Malaysia (RCM) has, on 14 September 2009, issued a “List of Taxable and Non-taxable Services for the Purposes of Service Tax”.  The list indicates the types of taxable and non-taxable services for the various industries/service providers such as  accountants, private hospitals, hotels, parking operators, lawyers, consultants, restaurants, telecommunications companies, etc.

The RCM has indicated that the list is to be used only as a guide and should not be taken as conclusive when making decisions.  You may obtain further clarification/details from the RCM at 03-8882 2100 (telephone), 03-8889 5869 (fax) or e-mail cd@customs.gov.my. 

Members may view the detailed guide at the RCM’s website at http://www.customs.gov.my/documents/Bahagian%20CD/Senarai%20perkhidmatan%20bercukai%20dan%20tidak%20bercukai.pdf or the Institute’s website at http://www.ctim.org.my/technical_techdev_indirect.asp

  

Customs (Amendment)(No.4) Regulations 2009 [P.U.(A) 313-2009]

Regulation 11A and Part I of Second Schedule of Customs Regulations 1977 have been amended and are effective from 27 August 2009.  Form Customs No. 1A (Value Declaration Form) is to be completed and submitted together with form Customs No. 1 if the invoice value of imported goods for any one consignment is RM 20,000 or more, the imported goods are for commercial purposes and the import duty is levied on the goods.

Joint Tax Working Group on Financial Reporting Standards (JTWG-FRS)

Following our e-CTIM No.43/2009 dated 16 September 2009, please be informed that the JTWG-FRS has further reviewed the following Financial Reporting Standards (FRS) and would like to circulate the draft write-ups on major tax implications related to the implementation of the FRS for your comments:

FRS 102	Inventories
FRS 140	Investment Property

Please be informed that the above write-ups as attached can also be downloaded from the Institute’s website at http://ctim.org.my/technical_pracstatement.asp .

Members are invited to review the above write-ups and submit their comments to the JTWG-FRS.  Comments should be submitted in writing to the CTIM’s Secretariat or email to kslim@ctim.org.my or technical@ctim.org.my by 21 October 2009 for the deliberation of the JTWG-FRS.  You may also fax your comments to the Institute at 03-2162 8990.

Comments may refer to any specific principles, paragraphs or group of paragraphs and suggestions for alternative solutions or wordings with supporting reasons.  These comments will be collated and, where appropriate, incorporated into the write-ups before finalisation.

The Institute looks forward to receiving your comments on the above matter.

Thank you.

ANN VONG

Executive Director

Click HERE for printer-friendly version of the circular

Joint Tax Working Group on Financial Reporting Standards (JTWG-FRS)

Following our e-CTIM No.20/2009 dated 24 April 2009, please be informed that the JTWG-FRS has reviewed the following Financial Reporting Standards (FRS) and would like to circulate the draft write-ups on major tax implications related to the implementation of the FRS for your comments:

FRS 2	Share-based Payment
FRS 5	Non-current Assets Held for Sale and Discontinued Operations

Please be informed that the above write-ups as attached can also be downloaded from the Institute’s website at http://ctim.org.my/technical_pracstatement.asp .

Members are invited to review the above write-ups and submit their comments to the JTWG-FRS.  Comments should be submitted in writing to the CTIM’s Secretariat at technical@ctim.org.my or email to kslim@ctim.org.my by 23 September 2009 for the deliberation of the JTWG-FRS.  You may also fax your comments to the Institute at 03-2162 8990.

Comments may refer to any specific principles, paragraphs or group of paragraphs and suggestions for alternative solutions or wordings with supporting reasons.  These comments will be collated and, where appropriate, incorporated into the write-ups before finalisation.

The Institute looks forward to receiving your comments on the above matter.

Thank you.

ANN VONG (MS)

Executive Director

Click HERE for printer friendly version of this circular