Post on 17-Apr-2021
Table of ContentsPage Number
1 Human Resource Development Fund Gazette Orders
……………………………………………....... 3
2 Special Voluntary Disclosure Programme(“SVDP”) Update
……………………………………………....... 5
3 Sales and Service Tax Guides Updates ……………………………………………....... 6
4 International Tax Issues due to COVID-19 Travel Restrictions
……………………………………………....... 7
5 Stamp Duty Gazette Orders ……………………………………………....... 8
6 Income Tax Gazette Orders ……………………………………………....... 9
Human Resource Development Fund Gazette Orders
3 | ANC TaxLetter | Issue 31
Gazette Order
Description
P.U.(A)
84/2021
Pembangunan Sumber Manusia Berhad (Amendment of First Schedule) Order 2021
In order to strengthen the lifelong learning for skills enhancements, the Human Resource Development
Fund (“HRDF”) has widened its scope of coverage in Part I of First Schedule of Pembangunan Sumber
Manusia Berhad (“PSMB”) Act 2001 as follows:
In Part II of the First Schedule of PSMB Act 2001, employer with:-
i. Five (5) to nine (9) employees; and
ii. Five (5) or more but less than five hundred thousand (500,000) employees which is non-
governmental organization and carrying out labour union; religious organization; political
organization; nursing care facilities, including nursing home for elderly person, disable person,
orphanage, chemicals abuser or any welfare services; or social work without lodging.
may opt to register with HRDF:
Effective 1 March 2021.
P.U.(A)
85/2021
Pembangunan Sumber Manusia Berhad (Exemption of Levy) Order 2021
Nevertheless, relaxation is given to new employers as the HRDF contribution will be exempted effective
from 1 March 2021 to 31 May 2021. Therefore, the actual contribution date will commence on 1 June 2021.
First Schedule of PSMB Act 2001
Class of Employer Class of Employer(New)
a) Manufacturing Sectorb) Service Sectorc) Mining and Quarrying Sector
Employers with ten or more employees. Kindly refer toPage 4 for the relevant industries.
First Schedule Levy Rate of Monthly Wages of Each of the Malaysian Citizen Employee (%)
Part I 1.0%
Part II 0.5%** If the number of employees more than maximum number stated, therate of levy shall increase to 1%.
Human Resource Development Fund Gazette Orders
4 | ANC TaxLetter | Issue 31
Gazette Order
Description
P.U.(A)
84/2021
Pembangunan Sumber Manusia Berhad (Amendment of First Schedule) Order 2021
New industries covered under Part I of the First Schedule of PSMB Act 2001:-
Agriculture and Farming
Livestock and Fisheries Forestry and Logging
Mining and Quarrying
Manufacturing and Production
Trading, Business and Wholesale
Construction Gas and Steam
Supply Real Estate Culture, Arts and Entertainment
Water
Fashion and Clothing
Tourism and Recreation Service Sewerage
Franchise Electricity Oil Management and Remediation of Solid, Liquid
and Gaseous Waste
Automotive Transportation Repair and Maintenance
Storage
Delivery Food and Beverages Information System Communication and Multimedia
Broadcasting and Film
Banking and Finance Insurance and Takaful
Investment
Co-operative Societies
Professional Science and Technology
Research and Development
Science and Technicality
Administration and Support Service
Education Medical and Health Facilities
Social Welfare Administration of Organization Membership
Small and Medium Enterprises
Household Goods and Services
Sports Energy and Natural Resources
Personal Services
Special Voluntary Disclosure Programme (“SVDP”) Update
5 | ANC TaxLetter | Issue 31
Description
There are allegations that the Inland Revenue Board of Malaysia (“IRBM”) has made a U-turn on the treatments on taxpayers
who took part in the Special Voluntary Disclosure Programme (“SVDP”), which was implemented from 3 November 2018 to 30
September 2019.
On 9 March 2021, IRBM has denied such allegations and clarified that treatments on each case were based on facts and
merits. The IRBM mentioned that a total of 286,428 taxpayers have participated in SVDP, with a total taxes and penalties
collection of RM7.877 billion, and 11,176 were new taxpayers.
IRBM gave its assurance that it would accept their SVDP in good faith, provided full income and payment has been made within
the stipulated period. Nevertheless, the computation of tax will still be checked to ensure the accuracy of the SVDP made.
Sales and Service Tax Guides Updates
6 | ANC TaxLetter | Issue 31Description
Guide on Information Technology Services
In accordance with an update on Example 24 provided in the Information Technology (“IT”) Services Guide, a registered person
who fulfill the following conditions:-
a) Registered person under Service Tax Act 2018 and account for service tax using SST-02 form;
b) Provide same services to customer as imported taxable services acquired;
c) Imported taxable service is for furtherance of business and not for personal consumption; and
d) Has paid amount payable for the imported taxable service to the service provider.
is granted exemption by Minister to account and pay service tax on imported taxable service based on the self-recipient
accounting, under the Service Tax Policy (“STP”) No. 2/2020.
Effective 1 January 2020.
Guide on Digital Services by Foreign Service Provider (“FSP”)
The Royal Malaysian Customs Department (“RMCD”) has clarified that the following are defined as Digital Services:-
a) Digital image which can be downloaded online;
b) Presentation template which can be downloaded via dedicated cloud-based storage; and
c) 3D drawing which has been purchased from overseas company but received in a form of softcopy.
Pursuant to Paragraph 23 of the Guide, effective from 14 May 2020, exemption is given to Foreign Registered Person (“FRP”) or
FSP that provides digital service to Malaysia’s company within the same group of companies. Meanwhile, FRP who provides
digital service only to a company in Malaysia who is in the same group of companies may apply for cancellation of registration.
Kindly refer to Paragraph 4 to Paragraph 7 of the First Schedule of the Service Tax Regulations 2018 for the qualifying
conditions of a company to be within a group of companies.
Effective from 1 January 2021, the Director General may:-
a) Upon application of FRP, approve service tax to be due at the time when invoice is issued;
b) Credit notes and debit notes shall be issued by FRP to make service tax adjustments when there is a reduction or increase
in the amount of service tax being accounted; and
c) Any application for remission of penalties shall be made online through MySToDS and submitted together with the relevant
supporting documents.
International Tax Issues due to COVID-19 Travel Restrictions
7 | ANC TaxLetter | Issue 31
Description
Tax Residency for Year of Assessment (”YA”) 2020 & YA 2021
The COVID-19 pandemic has caused complications in determining the residence status of expatriate taxpayers in Malaysia. For
example, expatriates who attended meetings overseas were denied entry into Malaysia, due to the travel restriction imposed by
the Malaysian Government. Although the services rendered by the expatriate is related to its employment in Malaysia, as the
expatriate is physically outside of Malaysia, the one hundred and eighty-two (182) physical presence days in Malaysia became
questionable.
Fortunately, the IRBM provides relaxation to allow the period of temporary absence to be taken to form part of the taxpayer’s
period or periods in Malaysia for the purpose of determining tax residency. However, such period of temporary absence must be
supported by proper documentations and information. These documentations and information must be kept and submitted to the
IRBM upon request. Example of documents may include (but not restricted to) travel documents, local or foreign authority travel
restrictions guidelines and similar relevant documents which may prove that the taxpayer’s temporary absence or presence in
Malaysia was due to COVID-19 travel restrictions or documents which indicate that effort was taken by the taxpayer to return to
Malaysia during the Movement Control Order period.
The Movement Control Order period starts from 18 March 2020 as prescribed and extended by the Ministerial Order made
under Section 11 of the Prevention and Control of Infectious Diseases Act 1988 which is gazetted from time to time.
Application for the determination of the taxpayer’s resident status during the Movement Control Order period must be referred to
the IRBM’s branch that handles the taxpayer’s income tax file. Each application will be reviewed and assessed in accordance
with the merit of the case. Confirmation of taxability from foreign tax authorities may be requested if such need arises.
Stamp Duty Gazette Orders
8 | ANC TaxLetter | Issue 31Gazette Order
Description
P.U.(A)
53/2021
P.U.(A)
54/2021
Stamp Duty (Exemption) Order 2021
P.U.(A) 53/2021 exempts stamp duty from all instrument of transfer for the purchase of only one (1) unit of
residential property which is worth (market value) not more than five hundred thousand ringgit
(RM500,000) executed by a Malaysian citizen individual.
Stamp Duty (Exemption) (No. 2) Order 2021
Whereas P.U.(A) 54/2021 exempts stamp duty on any loan agreement to finance the purchase of one unit
of residential property which is worth (market value) not more than five hundred thousand ringgit
(RM500,000) executed between a Malaysian citizen individual named in the sale and purchase agreement
and a financial institutions under relevant Acts.
The qualifying conditions below shall be observed in order to enjoy the exemptions stated above:-
a) The sale and purchase agreement for the purchase of the residential property is executed on or after 1
January 2021 but not later than 31 December 2025; and
b) The individual has never owned any residential property including a residential property which is
obtained by way of inheritance or gift, which is held either individually or jointly.
The application for the exemption shall be accompanied by a statutory declaration under the Statutory
Declarations Act 1960.
P.U.(A)
73/2021
Stamp Duty (Exemption) (No. 3) Order 2021
The Minister exempts stamp duty on instruments in relation to an approved merger or acquisition by the
Ministry of Entrepreneur Development and Cooperatives, executed by small and medium enterprises. The
instruments are defined as:-
a) Contract or agreement for the sale or leasing of property (land, building, machinery and equipment);
b) Instrument of transfer and memorandum of understanding;
c) Loan or financing agreement; and
d) First leasing agreement.
The exemption shall apply to instrument executed on or after 1 July 2020 but not later than 31 December
2021.
Gazette Order
Description
P.U.(A)
95/2021
Income Tax (Exemption) (No. 2) Order 2021
A Malaysian resident qualifying person is exempted from paying income tax in the basis period of each YA in
relation to gains or profits derive, in lieu of interest, from Sukuk Prihatin.
Qualifying person means:
a) A Malaysian individual citizen who’s eighteen (18) years and above;
b) A body corporate incorporated under the laws of Malaysia but excluding a financial institution and a
holder of a Capital Markets Services Licence carrying on the business of fund management under the
Capital Markets and Services Act 2007 [Act 671]; or
c) A body of persons, partnership or limited liability partnership registered under any written law in Malaysia
and businesses that carry on in Malaysia but excluding a trustee registered as a member of Association
of Trust Companies Malaysia who acts on behalf of the person.
Effective YA 2020.
This taxletter offers non-binding information and is intended for general information purposes only. It is not intended as legal, tax or business administration advice and cannot be relied upon as individual advice. When compiling thistaxletter and the information included herein, ANC Hub Tax Advisory Sdn Bhd (“ANC Group”) used every endeavour to observe due diligence as best as possible, nevertheless, ANC Group cannot be held liable for the correctness, up-to-date content or completeness of the presented information.
The information included herein does not relate to any specific case of an individual or a legal entity, therefore, it is advised that professional advice on individual cases is always sought. ANC Group assumes no responsibility fordecisions made by the reader based on this leaflet. Should you have further questions please contact ANC Group contact persons.
Song LiewManaging Partnerinquiry@ancgroup.biz
Wang Choo JadAssociate Partnerinquiry@ancgroup.biz
Income TaxGazette Orders
9 | ANC TaxLetter | Issue 31
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