CCT Internal e-Tax Update - Cheng & Cochengco.com.my/wp/wp-content/uploads/2018/01/CCT-e... ·...

CCT e-Tax Circular

Issue No. 1/2018 – 1 January 2018

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TABLE OF CONTENTS

Income Tax and GST Legislations, Public Rulings And Guides Update .................. 3

Direct Taxation ................................................................................................... 3

Rules/Orders/Regulations recently gazetted .......................................................................... 3

PUBLIC RULINGS NO.9/2017, NO.10/2017 AND NO.11/2017................................................. 5

Amendments made to Automatic Exchange of Financial Account Information Rules 2017, 26

December 2017 ....................................................................................................................... 6

IRB issues revised PR on residence status on individuals, 26 December 2017 ....................... 6

IRB issues PR on professional indemnity insurance, 20 December 2017 ............................... 7

IRB updates DTA information, 19 December 2017 ................................................................. 8

Income Tax and GST Legislations, Public Rulings And Guides Update .................. 9

Indirect Taxation ................................................................................................. 9

Orders recently gazetted ......................................................................................................... 9

RMCD releases revised guide on tourist refund scheme, 27 December 2017 ..................... 10

Updated conditions on recovery of repair cost from overseas manufacturer, 26 December

2017 ....................................................................................................................................... 11

CCT Internal e-Tax Update No.1/2018 1 January 2018

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RMCD Announcement – Standard / Varied Taxable Period (VTP) Application must be made

via Taxpayer Access Point (TAP) ............................................................................................ 11

RMCD releases revised guides on commercial banking and fund management, 20 December

2017 ....................................................................................................................................... 12

Income Tax and GST News ................................................................................ 13

IRB releases a list of individuals and companies declared as bankrupt, 26 December 2017 13

G25 report calls for reform of taxation system, 26 December 2017 .................................... 13

Important dates ................................................................................................ 14

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Issue No. 3/2017 - 1 March 2017

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INCOME TAX AND GST LEGISLATIONS, PUBLIC RULINGS

AND GUIDES UPDATE

DIRECT TAXATION

RULES/ORDERS/REGULATIONS RECENTLY GAZETTED

The following Rules/Orders/Regulations have been recently gazetted and have come into

operation as follows:-

P.U. (A) Title Date Gazetted Remarks

Income Tax

403/2017 Income Tax (Automatic

Exchange of Financial

Account Information)

(Amendment) Rules

2017

22 December

2017

These Rules amend the

Income Tax (Automatic

Exchange of Financial

Account Information)

Rules 2016 [P.U. (A)

355/2016]

410/2017 Income Tax (Set-Off for

Tax Charged on

Actuarial Surplus Under

Takaful Business) Rules

2017

26 December

2017

These Rules are deemed

to have effect from the

year of assessment 2015.

411/2017 Income Tax (Exemption)

(No.3) 2014

(Amendment) Order

2017

27 December

2017

This Order amends the

Income Tax (Exemption)

(No. 3) Order 2014

[P.U.(A) 167/2014] and

comes into operation on 1

January 2018.

http://www.federalgazette.agc.gov.my/outputp/pua_20171222_P.U.%20(A)%20403%20latest.pdf






http://www.federalgazette.agc.gov.my/outputp/pua_20161223_Kaedah-Kaedah%20Cukai%20Pendapatan%20(Pertukaran%20Automatik%20Maklumat%20Akaun%20Kewangan)%202016.pdf





http://www.federalgazette.agc.gov.my/outputp/pua_20171227_P.U.(A)410.pdf






http://www.federalgazette.agc.gov.my/outputp/pua_20171227_P.U.%20(A)%20411.pdf





http://www.federalgazette.agc.gov.my/outputp/pua_20140620_P.U.%20(A)%20167-Perintah%20Cukai%20Pendapatan%20(Pengecualian)%20(No.%203)%202014.pdf



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(No.11) 2016

(Amendment) Order

2017

27 December

2017



(No. 11) Order 2016 [P.U.

(A) 345/2016]


(No.12) 2016

(Amendment) Order

2017

27 December

2017



(No. 12) Order 2016 [P.U.

(A) 346/2016]

416/2017 Income Tax (Country-By-

Country Reporting)

(Amendment) Rules

2017

27 December

2017

These Rules amends the

Income Tax (Country-By-

Country Reporting) Rules

2016 [P.U. (A) 357/2016]

420/2017 Income Tax (Deduction

from Remuneration)

(Amendment) Rules

2017

27 December

2017

These Rules amends the

Income Tax (Deduction

from Remuneration) Rules

1994 [ P.U. (A) 507/1994]

and comes into operation

on 1 January 2018.

Labuan

409/2017 Labuan Business Activity

Tax (Country-By-Country

Reporting) Regulations

2017

26 December

2017

To read the Rules/Orders/Regulations in full at the official website of the Attorney-

General’s Chambers.






http://www.federalgazette.agc.gov.my/outputp/pua_20161222_P.U.%20(A)%20345%20-%20(Draf%20diluluskan)%20-%20PCP%20Pelancongan%20Asing%20(2).pdf








http://www.federalgazette.agc.gov.my/outputp/pua_20161222_P.U.%20(A)%20346%20-(Draf%20diluluskan)%20-%20PCP%20Pelancongan%20Dalam%20Malaysia.pdf



http://www.federalgazette.agc.gov.my/outputp/pua_20171227_P.U.(A)%20416.pdf





http://www.federalgazette.agc.gov.my/outputp/pua_20161223_(008)%20%2011%2011%202016%20%20Draf%20muktamad.pdf













http://www.federalgazette.agc.gov.my/eng_main/main_warta_harian.php?jenis_pu=pua&&y=2017


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PUBLIC RULINGS NO.9/2017, NO.10/2017 AND NO.11/2017

The Inland Revenue Board of Malaysia (LHDNM) has uploaded the Public Rulings (PR)

No.9/2017, PR No.10/2017 and PR No.11/2017 dated 22 December 2017on its website

as follows:

1) PR No.9/2017 on Reinvestment Allowance Part I – Manufacturing Activity

The objective of this PR is to assist a company resident in Malaysia and engaged in

manufacturing activities in ascertaining its eligibility to claim reinvestment allowance

(RA) and provide clarification in relation to projects that qualify for RA; expenditures

that qualify for RA; period of eligibility; and computation of RA.

The contents of PR No.6/2012 have been rewritten, rearranged and updated.

2) PR No.10/2017 on Reinvestment Allowance Part II – Agricultural and Integrated

Activities

The objective of this PR is to assist a company resident in Malaysia and engaged in

agricultural and integrated activities in ascertaining its eligibility to claim RA and

provide clarification in relation to projects that qualify for RA; expenditures that qualify

for RA; period of eligibility; and computation of RA.

The contents of PR No.6/2012 have been rewritten, rearranged, updated and this PR

should be read together with PR No.9/2017.

3) PR No.11/2017 on Residence Status of Individuals

The objective of this PR is to explain the determination of residence status for

individuals. This PR replaces the PR No.6/2011 dated 16 May 2011.

To read the PRs in full on the websites of the LHDNM.

http://www.ctim.org.my/download.asp?cat=14&file=poqKDMHJLMIDDKpJEqsGppLIqsHMDEIG.2qs

http://www.ctim.org.my/download.asp?cat=14&file=FKGpFosFsLKFLDKEEFEpqDsFIsGsFqsq.2qs

http://www.ctim.org.my/download.asp?cat=14&file=IspDHFDHHpGoqDnrILEJJDHEIrJqpEnE.2qs



http://lampiran1.hasil.gov.my/pdf/pdfam/PR_6_2012_pin_17052017.pdf




http://lampiran1.hasil.gov.my/pdf/pdfam/PR_6_2012_pin_17052017.pdf




http://lampiran2.hasil.gov.my/pdf/pdfam/PR6_2011_23012017.pdf

http://www.hasil.gov.my/bt_goindex.php?bt_kump=5&bt_skum=5&bt_posi=3&bt_unit=1&bt_sequ=1

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AMENDMENTS MADE TO AUTOMATIC EXCHANGE OF FINANCIAL

ACCOUNT INFORMATION RULES 2017, 26 DECEMBER 2017

The Income Tax (Automatic Exchange of Financial Account Information) (Amendment)

Rules 2017 was issued on 22 December 2017.

The abovementioned Rules amend Income Tax (Automatic Exchange of Financial

Account Information) Rules 2016 as follows:

• Rule 3 — Amendment to the definition of “Standard”

• Rule 3A — New rule added on the application of the Standard

• Rule 4(4)(c) — New sub-rule added on the due diligence obligations

• Rule 5(5A) — New sub-rule added on modifications to due diligence obligations

• Rule 13 — New rule added on special provision for reporting of pre-existing

individual accounts

• Schedule 2 — New schedule added on “Excluded Accounts”.

Source: Federal Gazette Portal of the Attorney General’s Chambers, 22 December 2017

IRB ISSUES REVISED PR ON RESIDENCE STATUS ON INDIVIDUALS,

26 DECEMBER 2017

The Inland Revenue Board (IRB) has published a public ruling (PR) on “Residence Status

on Individuals” (PR No 11/2017) dated 22 December 2017.

This PR replaces PR No. 6/2011 dated 16 May 2011 and has, amongst others:

• Paragraph 2.3 — Updated the relevant subsidiary law referred to.

http://prod.resource.wkasiapacific.com/resource/scion/tracker/160026:wmtxtnewsUio2935399sl909546754?range=1&d1=27-12-2017&src=ml&cpid=WKAP-TAL-IC&uAppCtx=ATE




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• Paragraph 4.2 — Updated the tax treatment of resident individuals subject to

withholding tax, pursuant to the amendment made to s 109C(4) of the Income Tax

Act 1967 and Income Tax (Exemption) (No. 7) (Amendment) Order 2009.

• Paragraph 6.3.3, Examples 14 and 15 — Inserted a new paragraph and

examples to provide further clarification on s 7(1)(c) of the Income Tax Act 1967.

Kindly refer to the IRB website for further details.

Source: IRB website, 22 December 2017

IRB ISSUES PR ON PROFESSIONAL INDEMNITY INSURANCE, 20

DECEMBER 2017

The Inland Revenue Board (IRB) has published a public ruling (PR) on “Professional

Indemnity Insurance” (PR No 8/2017) dated 19 December 2017.

The PR explains:

• deductibility of premium paid for a professional indemnity insurance (PII) policy,

and

• tax treatment on insurance proceeds received and compensation paid in relation

to a PII policy.

This PR replaces PR No. 3/2009 dated 30 July 2009 and contains, amongst others,

updated commentary on the tax treatment of PII, insurance proceeds and compensation.

Kindly refer to the IRB website for further details.


http://tinyurl.com/y9l6w9gz



http://www.hasil.gov.my/bt_goindex.php?

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IRB UPDATES DTA INFORMATION, 19 DECEMBER 2017

The Inland Revenue Board has updated its “Double Taxation Agreement” (DTA) page to

include the DTA rates as at December 2017.

Kindly visit the IRB website for further information.



https://tinyurl.com/yab9gakr

CCT e-Tax Circular


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INCOME TAX AND GST LEGISLATIONS, PUBLIC

RULINGS AND GUIDES UPDATE

INDIRECT TAXATION

ORDERS RECENTLY GAZETTED

The following Orders have been recently gazetted and have come into operation as

follows:-

P.U. (A) Title Date Gazetted Remarks

CUSTOMS

404/2017 Customs (Anti-Dumping

Duties) (Administrative

Review) (Amendment)

Order 2017

22 December

2017


P.U.(A) 239/2016 and

deemed to have come

into operation on 1

August 2017.

STAMP DUTY

408/2017 Stamp Duty (Exemption)

(No. 2) Order 2017

26 December

2017

This Order comes into

operation on 1 January

2018.


(No. 5) 2013

(Amendment) Order

2017

27 December

2017


P.U.(A) 91/2013 and


January 2018.


(No. 6) 2013

27 December This Order amends the

P.U.(A) 92/2013 and






http://www.federalgazette.agc.gov.my/outputp/pub_201609014_P%20U%20%20(A)%20239.pdf









http://www.federalgazette.agc.gov.my/outputp/pua_20130314_P.U.%20(A)%2091%20-%20Perintah%20duti%20setem%20(no%20%205)%20%20(PEMBELI%20PROJEK%20TERBENGKALAI)(FINAL%20E-WARTA).pdf




http://www.federalgazette.agc.gov.my/outputp/pua_20130314_PERINTAH%20DUTI%20SETEM%20(PENGECUALIAN)%20(NO.%206)%202013.pdf

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(Amendment) Order

2017

2017 comes into operation on 1

January 2018.

GOODS AND SERVICES TAX

421/2017 Goods and Services Tax

(Exempt Supply)

(Amendment) (No. 2)

Order 2017

28 December

2017


P.U.(A) 271/2014 and


January 2018.

(Refer to our e-CTIM

TECH-IT 32/2017)

422/2017 Goods and Services Tax

(Zero-Rated Supply)

(Amendment) (No. 3)

Order 2017

28 December

2017


P.U.(A) 272/2014 and


January 2018.

(Refer to our e-CTIM

TECH-IT 21/2017)

To read the Orders in full at the official website of the Attorney-General’s Chambers.

RMCD RELEASES REVISED GUIDE ON TOURIST REFUND SCHEME, 27

DECEMBER 2017

The Royal Malaysian Customs Department (RMCD) has released the revised Guide on

Tourist Refund Scheme (as at 21 December 2017).

The revised Guide updates para 9 to include Langkawi International Airport, Kedah in the

list of approved Malaysian airports for the purposes of the Tourist Refund Scheme.

The Guide on Tourist Refund Scheme (as at 21 December 2017) replaces the Guide on

Tourist Refund Scheme (as at 8 May 2017), which has been withdrawn.








http://www.federalgazette.agc.gov.my/outputp/pua_20141013_P.U.%20(A)%20271-perintah%20cukai%20barang%20dan%20perkhidmatan%20(pembekalan%20dikecualikan)%202014.pdf

http://www.ctim.org.my/download.asp?cat=50&file=pGGsoMpoLpsEnIoKLMLsMHMDLEsrnpnD.2qs

http://www.ctim.org.my/download.asp?cat=50&file=pGGsoMpoLpsEnIoKLMLsMHMDLEsrnpnD.2qs






http://www.federalgazette.agc.gov.my/outputp/pua_20141013_P.U.%20(A)%20272%20-%20Perintah%20CBP%20(Pembekalan%20Berkadar%20Sifar)%202014.pdf

http://www.ctim.org.my/download.asp?cat=50&file=ssqrIrDrppqnHDpsDnqGHJMDKLHJHIEI.2qs

http://www.ctim.org.my/download.asp?cat=50&file=ssqrIrDrppqnHDpsDnqGHJMDKLHJHIEI.2qs


http://prod.resource.wkasiapacific.com/resource/scion/tracker/160025:wmgsttnewsUio2935492sl909909130?range=1&d1=28-12-2017&src=ml&cpid=WKAP-TAL-IC&uAppCtx=ATE


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Kindly visit the RMCD website for further details.

Source: RMCD website, 21 December 2017

UPDATED CONDITIONS ON RECOVERY OF REPAIR COST FROM

OVERSEAS MANUFACTURER, 26 DECEMBER 2017

The conditions for the recovery of repair cost from overseas manufacturer in respect of

goods under a warranty, which was first announced in July 2017, has been updated.

Kindly visit the Royal Malaysian Customs Department (RMCD) website for further details.


RMCD ANNOUNCEMENT – STANDARD / VARIED TAXABLE PERIOD

(VTP) APPLICATION MUST BE MADE VIA TAXPAYER ACCESS POINT

(TAP)

The Royal Malaysian Customs Department (RMCD) had announced on 17 October 2017

that all applications relating to Standard / Varied Taxable Period must be made via the

Taxpayer Access Point (TAP). Applications made via letter to the GST Division, Putrajaya

or ADM21 form to the GST Processing Centre, Kelana Jaya will not be processed with

immediate effect.

The RMCD has uploaded the guidance for the above-mentioned applications via the TAP

as follows:

1. Standard / Varied Taxable Period to Varied Taxable Period

2. Varied Taxable Period to Standard Taxable Period

To view the announcement at the websites of the RMCD.

http://gst.customs.gov.my/en/rg/Pages/rg_ig.aspx



http://gst.customs.gov.my/en/rg/Pages/rg_rbm.aspx

http://www.ctim.org.my/download.asp?cat=15&file=onDGEHpIqMqFLMIJIKILoIGDqMpoGHMD.2qs




http://www.ctim.org.my/download.asp?cat=15&file=MJnEMJIrHKqFDGIGDFHoKFLIFospsDqE.2qs

http://www.ctim.org.my/download.asp?cat=15&file=sLKLMErLFFsJGEnKFLGKpsnGJIqJDqJq.2qs

http://gst.customs.gov.my/en/hl/_layouts/CustomApplication/AnnouncementDetails.aspx?ID=250

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RMCD RELEASES REVISED GUIDES ON COMMERCIAL BANKING AND

FUND MANAGEMENT, 20 DECEMBER 2017

The Royal Malaysian Customs Department (RMCD) has revised the following industry

guides:

GUIDE ON COMMERCIAL BANKING (REVISED AS AT 19 DECEMBER 2017)

The abovementioned Guide has been amended as following:

• Paragraph 7(a) and (c) — Updated commentary on the GST treatment on exempt

supplies and zero-rated supplies made in the commercial banking industry.

• FAQ 16 — Revised the FAQ on the provision of loan for foreign projects.

• Appendix 1 — Updated the Appendix on the list of supplies in commercial banking

industry.

GUIDE ON FUND MANAGEMENT (REVISED AS AT 19 DECEMBER 2017)

The abovementioned Guide has been amended as following:

• FAQ 18 – Addition of FAQ on the GST treatment of gains or proceeds received

from redemption of unit trust by an investment holding company.

Kindly visit the RMCD website for further details.




http://gst.customs.gov.my/en/rg/Pages/rg_ig.aspx

CCT e-Tax Circular

Issue No. 3/2017 - 1 March 2017

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INCOME TAX AND GST

NEWS

IRB RELEASES A LIST OF

INDIVIDUALS AND COMPANIES

DECLARED AS BANKRUPT, 26

DECEMBER 2017

The Inland Revenue Board (IRB) has

released a list of individuals and

companies declared as bankrupt for

failing to settle outstanding taxes owed to

the department.

Kindly visit the IRB website for further

details.


G25 REPORT CALLS FOR

REFORM OF TAXATION

SYSTEM, 26 DECEMBER 2017

A report titled Invigorating Economic

Confidence in Malaysia released by G25

suggests for a panel comprising of

business leaders and tax experts to

conduct a public review of the tax system

and also maintain GST at 6% but

restructure the corporate and personal

income tax regime to be regionally

competitive.

Should the government restructure the

income tax regime, it will assist the

smaller firms and also put the Malaysia

corporate tax rate in line with other

ASEAN countries.

The report also said that all rent-seeking

behaviour should be eradicated and

recommends that to encourage the

informal industry to register, an

introductory flat tax rate of 10% be

offered to them.

The report also discusses sin taxes,

corruption and aid for B40.

Read more here.

Source: The Edge Markets, 25

December 2017





http://tinyurl.com/y9aa5cb6




http://www.theedgemarkets.com/article/state-nation-call-cut-taxes-and-axe-protectionist-policies-raise-income

CCT e-Tax Circular

Issue No. 3/2017 - 1 March 2017

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IMPORTANT DATES

15 January 2018 Due date for PCB payments

15 January 2018 Due date for monthly instalments

29 January 2018 Tax estimates for companies with February year-end (28 Feb 2019)

31 January 2018 6th month revision of tax estimates for companies with July year-end (31 July 2018)

31 January 2018 9th month revision of tax estimates for companies with April year-end (30 April 2018)

15 February 2018 Due date for PCB payments

15 February 2018 Due date for monthly instalments

28 February 2018 Tax estimates for companies with March year-end (31 Mar 2019)

28 February 2018 6th month revision of tax estimates for companies with July year-end (31 August 2018)

28 February 2018 9th month revision of tax estimates for companies with April year-end (31 May 2018)

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