Malaysia | Updates on Income & Service Tax - September 2020

Income tax

The Income Tax (Special Treatment for Interest on Loan) Regulations 2020 have been gazetted on 25 August 2020 and shall have effect for the year of assessment 2020 and subsequent years of assessment.

The Income Tax (Deduction for Expenses in relation to Listing on Access, Certainty, Efficiency (ACE) Market or Leading Entrepreneur Accelerator Platform (LEAP) Market of Bursa Malaysia Securities Berhad) Rules 2020 have been gazetted on 3 September 2020 and have effect from the year of assessment 2020 until the year of assessment 2022.

The Income Tax (Deduction for Expenditure on Industry4WRD Readiness Assessment) Rules 2020 have been gazetted on 21 September 2020 and are deemed to have come into operation from the year of assessment 2019 until the year of assessment 2021.

Service tax

The following policies and guides have recently been published on the Royal Malaysian Customs Department’s MySST website:

• Service Tax Policy No. 1/2020 (Amendment No. 1) issued on 13 August 2020;
• Service Tax Policy No. 3/2020 (Amendment No. 1) issued on 13 August 2020;
• Service Tax Policy No. 4/2020 (Amendment No. 1) issued on 13 August 2020;
• Service Tax Policy No. 5/2020 (Amendment No. 1) issued on 13 August 2020;
• Service Tax Policy No. 8/2020 (Amendment No. 1) issued on 13 August 2020;
• Specific Guide on Disbursement and Reimbursement (as at 15 September 2020); and
• Panduan Perkhidmatan Perundingan, Latihan dan Tunjuk Ajar (as at 15 September 2020) — available in Malay language only.