The Tax-Related Implications of the Movement Control Order (Update)
The following are the updates by the Inland Revenue Board of Malaysia (IRBM) and Royal Malaysian Customs Department (RMCD) on filing and procedural matters.
Updates by IRBM
1. ‘Frequently Asked Questions (FAQ) On Tax Matters During The Movement Control Order Period’ (Updated 26 March 2020)
The IRBM has updated the above FAQ to cover the period extended under the MCO. The following is a summary of the important clarifications, with the changes highlighted.
To read the full FAQ, please visit: http://lampiran1.hasil.gov.my/pdf/pdfam/faq_1.pdf
Remarks by the IRB
Extension of time will be given until 30 April 2020.
Extension of time will be given until 30 April 2020.
(c)
Donation to the Covid-19 Fund allowed as tax deduction.
Please refer to Appendix 1 for the IRBM’s Press Release dated 26 March 2020 on the matter.
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.
Please refer to Appendix 2 for the full details.
(c)
a) Entities in Malaysia responsible for the filing of the CbCR report will be given an extension of time as follows:-
- CbCR report for submission due on 31 March 2020. Extension of time until 15 May 2020.
- CbCR report for submission due on 30 April 2020. Extension of time until 15 May 2020.
b) Constituent entities in Malaysia responsible for the submission of CbCR notification will b given an extension of time as follows:-
- CbCR notification for submission due on 31 March 2020. Extension of time until 15 May 2020.
- CbCR notification for submission due on 30 April 2020. Extension of time until 15 May 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 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 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.
(c)
The first instalment which should be paid by 31 March 2020 is extended to 30 April 2020.
(d)
(e)
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.
(f)
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.
(g)
Extension of time of up to 30 April 2020 will be given to submit forms and make tax payments.
(h)
(i)
(j)
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.
Updates by IRBM
1. Due Date For Submission Of Returns And Payments
Any penalty which may be due or imposed for the submission of the returns / forms to the RMCD on or before 30 April 2020 will be given full remission.
Payment via online or by postal services is encouraged.
MEDIA RELEASE
INSENTIF POTONGAN CUKAI BAGI SUMBANGAN KEPADA TABUNG COVID-19.
