Malaysia | Tax Matters During the National Recovery Plan Phases (2)

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 13 September 2021) is accessible via this link.

Income tax

The following Rules have been gazetted on 8 September 2021:

• Income Tax (Special Deduction for Reduction of Rental to a Small and Medium Enterprise) Rules 2021 — deemed to have effect from year of assessment 2020; and
• Income Tax (Special Deduction for Reduction of Rental to a Tenant other than a Small and Medium Enterprise) Rules 2021 — deemed to have effect from year of assessment 2021.

A practice note on Explanation Relating to Expenditure or Additional Expenses for the purpose of Deduction Allowed in the Income Tax (Deduction for Expenditure on Issuance of Sukuk and Retail Sukuk Structured pursuant to the Principle of Wakalah) Rules 2021 [P.U.(A) 5/2021] (Practice Note No. 2/2021) has recently been published on 3 September 2021 on the Inland Revenue Board of Malaysia’s official website.