Malaysia | Tax Matters During the National Recovery Plan & Movement Control Order 3.0 Period

In view of the implementation of the National Recovery Plan in Malaysia, the Inland Revenue Board (“IRB”) has issued a list of Frequently Asked Questions on tax matters arising during this period. The FAQ (updated as at 4 July 2021) is accessible via this link.

The Royal Malaysian Customs Department (“Customs”) has also issued an announcement on 8 July 2021 on the extension of tax return filing and payment due dates for sales tax and service tax purposes. Click here to read the full announcement.

Income tax

The Income Tax (Accelerated Capital Allowance) (Excursion Bus) Rules 2021 have been gazetted on 1 July 2021 and have effect from year of assessment 2020 until year of assessment 2021.

The following public ruling and operational guideline have recently been published on the IRB’s official website:

  1. Tax Deduction for Sponsoring Arts, Cultural and Heritage Activities (Public Ruling 2/2021) issued on 8 July 2021; and
  2. Permohonan Surat Penyelesaian Cukai bagi Syarikat, Perkongsian Liabiliti Terhad dan Entiti Labuan (available in Malay language only) — issued on 30 June

Service tax

The Service Tax Policy No. 2/2021 issued on 1 July 2021 (in regard to the Service Tax Treatment on Group A: Accommodation First Schedule Service Tax Regulations 2018 under the People and Economic Strategic Empowerment Programme (“PEMERKASA”) has recently been published on Customs’ MySST website.

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