The Tax-Related Implications of the Movement Control Order
Key Takeaway
The Movement Control Order (MCO) was recently implemented by the Malaysian Government, which at the point of writing of this alert, covers the period from 18 March 2020 to 31 March 2020. This in turn affected several administrative matters with the temporary closure of the office of the Inland Revenue Board (IRB) nationwide during this period.
To address the taxpayers concerns, the IRB on 19 March 2020, published ‘FREQUENTLY ASKED QUESTIONS ON TAX MATTERS DURING THE MOVEMENT CONTROL ORDER PERIOD’ on procedural, filing and payment matters. The following are some of the important clarifications made in the FAQ:
Remarks by the IRB
Extension of time will be given until 30 April 2020.
Extension of time will be given until 30 April 2020.
The last day to file the various income tax return forms has been extended by up to two months from the original deadline.
Please note that the special extension of two months does not apply to companies with financial year ended on 31 December 2019.
(c)
(i) Entities in Malaysia responsible for the filing of the CbCR report on 31 March 2020 will be given an extension of time until 30 April 2020.
(ii) Notification for the purpose of CbCR by constituent entity which needs to be submitted by 31 March 2020 can be submitted on or by 30 April 2020.
(d)
Example of scenario:
Accounting period / basis period for a Labuan entity is 01/01/2020 – 31/12/2020. The due date for submission of Form LE3 for Year of Assessment 2020 is on 31/03/2020.
Extension of time will be given until 30 April 2020 for the submission of Form LE3 for Year of Assessment 2020.
3.
(a)
The deadline for submission of the CP204 which falls between 18 to 31 March 2020 will be extended to April 30 2020.
The submission of amendments to the estimated tax payable (CP204A) for the 6th and 9th month which is due by March 31 2020 will be extended to April 30, 2020.
(b)
The first instalment which should be paid by 31 March 2020 is extended to 30 April 2020.
(c)
Submission of tax estimate revision (CP204A) in the 3rd month and the instalment payment is extended to 30 April 2020.
(d)
Companies have an option to defer (if the activity of the company is related to tourism) or revise tax estimates in the 3rd month if the 3rd month instalment falls in March 2020.
(e)
Extension of time for tax payments will be given until 30 April 2020. Therefore payments received during this period will not be subjected to tax increase.
(f)
(g)
Payment of withholding tax which falls between 18 to 31 March 2020 can be made beginning 01 April 2020 up to 30 April 2020.
Payment can also be made through telegraphic transfer (TT) by furnishing complete payment details to IRBM through fax at 03-6201 9637 or through e-mail at: HelpTTpayment@hasil.gov.my
(h)
Payment of withholding tax which falls between 18 to 31 March 2020 can be made beginning 01 April 2020 up to 31 April 2020. No penalty will be imposed on late payment.
(i)
Payment can be made before 30 April 2020.
4.
(a)
For the submission of RPGT return forms and payment of RPGT (section 21B or payment of notice of assessment) where the due date falls within 18 March to 30 April 2020, the deadline for filing of the forms and payment is 30 April 2020.
FILING PROGRAM OF TAX RETURNS FOR THE YEAR 2020
