Income tax

The following public rulings and guidelines have recently been published on the Inland Revenue Board of Malaysia’s official website:

i. Tax Treatment of Research and Development Expenditure Part I – Qualifying Research and Development Activity (Public Ruling No. 5/2020) issued on 13 August 2020;

ii. Tax Treatment of Research and Development Expenditure Part II – Special Deductions (Public Ruling No. 6/2020) issued on 13 August 2020;

iii. Guidelines on the Application Procedure for a Special Deduction in respect of a Qualifying Research and Development issued on 13 August 2020;

iv. Pengenaan Penalti di bawah Subseksyen 112(3) Akta Cukai Pendapatan 1967, Subseksyen 51(3) Akta Petroleum (Cukai Pendapatan) 1967 dan Subseksyen 29(3) Akta Cukai Keuntungan Harta Tanah 1976 (available in Malay language only) – issued on 13 August 2020.

Income Tax & Petroleum Income Tax

The Double Taxation Relief (Multilateral Convention to Implement Tax Treaty related Measures to Prevent Base Erosion and Profit Shifting) Order 2020 has been gazetted on 4 August 2020.

Service tax

A revised version of the Industry Guide on Digital Services by Foreign Service Providers (FSP) (as at 1 August 2020) has been published on the Royal Malaysian Customs Department’s MySST website.

Goods and Services Tax (GST)

A revised version of the GST Guide on Declaration and Adjustment After 1st September 2018 (as at 18 August 2020) has also been published on the Royal Malaysian Customs Department’s MySST website.

For further information regarding tax and revenue matters, please contact our Tax and Revenue Practice Group.