Minutes of Filing Programme Working Group (DESIRE) Meeting No. 1/2010

The minutes of the DESIRE meeting No. 1 of 2010, held on 30 March 2010, have been released. It may be downloaded at the Institute’s website at

Members can also view the information from the website of the Institute at http://www.ctim.org.my/technical_techdev_direct.asp

Public Ruling on Withholding Tax on Section 4(f) Income (PR 01-2010)

Public Ruling No. 1 of 2010 (on withholding tax on Section 4(f) Income), dated 19 April 2010 has been released.  It may be downloaded from the website of IRB at http://www.hasil.gov.my/lhdnv3/documents/maklumat_terkini/KU%2001_2010.pdf.

Members can also view the information from the website of the Institute at http://www.ctim.org.my/technical_techdev_direct.asp

Addendum 4 to Benefits-in-kind (PR 02-2004)

This addendum provides clarification on the determination of Benefits-in-kind in respect of petrol provided free by employers.  The addendum to the Public Ruling can be downloaded from the website of the Inland Revenue Board’s website at http://www.hasil.gov.my/lhdnv3e/documents/maklumat_terkini/Fourth%20Add%20KU%202-2004.pdf . 

Members can also view the information at the Institute’s website at http://www.ctim.org.my/technical_techdev_direct.asp

Income tax relief on interest from housing loan

The Inland Revenue Board (IRB) issued a media release on the matter on 9 April 2010. It essentially states the conditions under which a relief may be claimed in respect of interest on housing loans taken by an individual

The media release can be downloaded at the IRB’s webwite at http://www.hasil.gov.my/lhdnv3/index.jsp?process=4100&newsid=84.  Members can also view the information from the website of the Institute at http://www.ctim.org.my/technical_techdev_direct.asp

Income Tax (Industrial Building Allowance)(Building under Privatisation Project and Private Financing Initiatives) Rules 2010 [P.U.(A) 119/2010]

The Rules stipulate that a building constructed under a privatisation project and private financing initiatives by the Privatization/PFI Committee, Public Private Partnership Unit, Prime Minister’s Department; and pursuant to an agreement entered into between a person and the Government of Malaysia or statutory body on a build-lease-maintain-transfer basis (BLMT Agreement) and for which no consideration has been paid by the Government of Malaysia or statutory body to that person, shall be treated as an industrial building with effect from the year of assessment 2009. 

The initial allowance and annual allowance of the industrial building shall be 10% and 6% respectively.  The balance of residual expenditure shall be reduced by the amount of any compensation received by such person; and the disposal value of the asset shall be taken to be zero when the BLMT agreement expires.

Income Tax – e-filing of return forms BE, B, M, P and E for the year 2009

The Inland Revenue Board has issued a press statement on 4 March 2010 with regard to the e-filing of tax return forms BE, B, M, P and E for the year 2009.  Taxpayers are urged to e-file their return forms early to avoid the challenges normally faced when filing is done near the due filing date.  A taxpayer who is e-filing for the first time must first apply for his/her personal identification number (PIN).  This application may be done by emailing to pin@hasil.gov.my or by telephone to 1-300-88-3010.  As for users who have forgotten their passwords for the e-filing system, they may call the helpline 03-4289 3535.

Members may view the press statement at the website of IRB at http://www.hasil.gov.my/lhdnv3/documents/maklumat_terkini/Kenyataan%20Media%20e-filing%20%204%20Mac%202010%20_pindaan_.pdf.

Income Tax - Programme for filing of return forms for 2010

The Inland Revenue Board (IRB) has issued the filing programme for 2010 recently. In connection with this, some related matters, which were discussed at the Operations Dialogue on 8 February 2010 between the Inland Revenue Board (IRB) and the professional taxation/accounting bodies, and deemed appropriate, have been included here.

The last date for filing of return forms is:

· 30 April 2010 for taxpayers with non-business income source(s); and

· 30 June 2010 for taxpayers with (a) business source(s).

a) The e–filing system for return forms BE, B, M, E and P for year of assessment 2009 is available from 1 March 2010 onwards.

b) Grace period for manual submission of return forms by post, in particular:

· Forms C, R, C1, TA, TC and TR for the year of assessment 2010.

· Forms BE, B, E, M, P, TP, TJ and TF for the year of assessment 2009

(i) A grace period is given for manually filed return forms C and R received through the post. For companies with financial year-ends 30 Jun 2009, and 31 December 2009, the grace period is fourteen (14) days; whereas for companies with financial year-ends 31 January 2010 and 31 March 2010, the grace period is seven (7) days.

(ii) These grace periods are also applicable to the payment of outstanding taxes under subsection 103(1), ITA, and any debt owing under the Saving and Transitional Provisions of Finance Acts 2007 and 2009.

c) Application for extension of time for (manual) filing of (paper) return forms

(i) The IRB has stated that the above application must be received by the IRB within fifteen (15) days before the due date for filing, and must be accompanied by strong reasons.

(ii) The application will be considered based on the merits of each case.

(iii) The approved extension of time will not apply to payment of outstanding taxes under subsection 103(1), ITA, and any debt owing under the Saving and Transitional Provisions of Finance Acts 2007 and 2009. Any payment due must be made before or on the due date for filing of the return.

d) Employer Return Form E 2009 must be submitted by 31 March 2010. A grace period of seven (7) days is also available for manually filed forms received through the post. A request for extension of time is allowed for manual filing. The same conditions, as for Forms C & R, apply.

e) Tax agents are not allowed to use the PDF version of tax return forms with effect from year of assessment 2009.

f) There is no need to submit original dividend vouchers together with the return forms for repayment cases. However, the taxpayer has to submit Attachment B1/Worksheet HK-3 to support the claim.