Responding to the tax compliance and administration impact from the implementation by the government of a Movement Control Order (“MCO”) which applies from 18 March, 2020 to 31 March, 2020, the Inland Revenue Board (“IRB”) has released a list of Frequently Asked Questions (“FAQ”). The FAQ is available on the IRB website.
We have listed below salient points from the FAQ. As many of these items involve concessionary treatments and extension of time (“EOT”) for various obligations, we would advise that you seek specific professional advice before you rely on any of the items. The position announced by the IRB may be subject to change or the IRB may take a different or narrow interpretation and consequently deny a taxpayer of the same. This could lead, inter-alia, to penalties being imposed.
The following are some of the salient points of the FAQ:
Closure of All IRB Premises
All IRB premises (including e-Filing counters) throughout the country are closed from 18 March, 2020 to 31 March, 2020. Tax related inquiries can be made using the Customer Feedback Form via https://maklumbalaspelanggan.hasil.gov.my/MaklumBalas/en-US/.
EOT for Submission of Documents
If taxpayers are required to submit to the IRB documents during this period as part of a tax audit/ investigation, an extension of time until 30 April, 2020 will be granted.
EOT for Filing of Tax Returns
An extension of time is granted for the filing of tax returns. For the following category of filing/taxpayers, the extension is:
The full extension programme can be found via http://lampiran1.hasil.gov.my/pdf/pdfam/ProgramMemfailBN_2020_Pin.1_2.pdf
EOT for Filing of Notice of Appeal
Extension of time until 30 April, 2020 is granted for filing of Form Q (Notice of Appeal), where the last date to file the Form Q falls within the period 18 March, 2020 to 31 March, 2020. In such cases, taxpayers are not required to apply for an extension of the period to make an appeal.
EOT for Filing Country-by-Country Report and Notification
Entities in Malaysia responsible for filing the country-by-country report on 31 March, 2020 is granted an extension of time until April 30, 2020. Any notification required to be submitted on 31 March, 2020 can be submitted on or before 30 April, 2020.
EOT for Submission of Employer Notifications
Forms CP21 (Notification by Employer of Employee’s Departure from Malaysia), CP22 (Notification of New Employee), CP22A (Notification of Cessation of Employment (Private Sector)) or CP22B (Notification of Cessation of Employment (Government Agency)) can be submitted starting from 1 April, 2020.
Delay to Processing of Applications for Tax Clearance Letter
Application for a tax clearance letter can be done via e-SPC at any time or at the Inland Revenue Board office starting from 1 April, 2020. Processing of applications will however only start from 1 April, 2020.
EOT for Furnishing of Estimate of Tax Payable and Payment of Instalments
For estimate of tax payable and payment by instalments:
- Form CP204 (Estimate of Tax Payable) that needs to be furnished within the period 18 March, 2020 to 31 March, 2020 can be furnished by 30 April, 2020;
- Form CP204A (Revised Estimate) that needs to be furnished on 31 March, 2020 can be furnished by 30 April, 2020;
- payment of the first instalment that is supposed to be made on 31 March, 2020 is given an extension of time until 30 April, 2020;
- a company has the choice of deferring payment of estimate of tax payable (if the company is involved in tourism-related activities) or revising the estimate in the third month if the third month instalment is in March, 2020.
EOT for Furnishing of Return and Payment of Tax for Labuan Entities
For Labuan entities, extension of time until April 30, 2020 will be granted for furnishing of return and payment of tax.
EOT for Payment of Withholding Tax
Withholding tax that is supposed to be paid to the Director General within the period 18 March, 2020 to 31 March, 2020 can be paid from 1 April, 2020 to 30 April, 2020. Payment can also be made by telegraphic transfer (TT). The complete payment details must be submitted to the Inland Revenue Board by facsimile (03-6201 9637) or by email to HelpTTpayment@hasil.gov.my. Penalties will not be imposed for late payment.
EOT for Furnishing of Real Property Gains Tax Returns and Payment
For real property gains tax returns that need to be furnished and payment that needs to be made within the period of 18 March, 2020 to 1 April, 2020, the deadline will be extended to 30 April, 2020.
EOT for Payment of Stamp Duty
In so far as stamp duty is concerned:
- An online assessment and payment system (STAMPS) is available for eligible parties and remains operational.
- For those who cannot use STAMPS, the stamping of documents at Inland Revenue Board counters is deferred to 31 March, 2020;
- penalties will be imposed for payments after 30 days of assessment. An extension of time until 30 April, 2020 is granted following the MCO.
Please do not hesitate to contact any of the following persons from our Tax Practice Group if you require any clarification:
Vijey M. Krishnan (Partner)
(T): 603 – 2632 9868
William Wong (Partner)
(T): 603 – 2632 9905
Nicholas Mark Pereira (Senior Associate)
(T): 603 – 2632 9911
Krystal Chiam (Associate)
(T): 603 – 2632 9999 (ext. 1201)