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Following the enforcement of nationwide Movement Control Order ("MCO") 3.0 from 12 May 2021 and the release of the PEMERKASA+ Package on 31 May 2021, the Malaysian Inland Revenue Board ("MIRB") has, on 2 June 2021, issued a list of Frequently Asked Questions ("FAQs") in relation to taxation matters during the MCO 3.0 period and a media release in relation to the relaxation in terms of penalties and outstanding taxes. The MIRB has further updated the FAQs on 3 June 2021.

Amongst others, the salient points of the MIRB’s latest FAQs include:-

(A) Extension of Time for Filing Returns/Forms

An extension of time till 31 July 2021 is granted for submission of the following returns / forms:

  • Forms for income tax estimates (CP204) and Notification of Change in Accounting Period (Form CP204B) which are due in June 2021;
  • Forms for revision of income tax estimates (CP204A and CP502) which are due in June 2021;
  • Income tax return forms for taxpayers carrying on business involving resident / non-resident individuals, resident / non-resident individuals (knowledge / expert workers), partnerships, associations, deceased persons estate and Hindu joint families; and
  • Real property gains tax (“RPGT”) returns which are due in June 2021.

(B) Appeal Against Penalties and Payment of Penalties

An application for appeal is allowed in respect of:

  • Penalties imposed under the Income Tax Act 1967, Stamp Act 1949 and RPGT Act 1976 (the quantum of the reduction of the penalty that the MIRB may grant remains to be seen);
  • Increase in taxes; and
  • Deferment of payment of any outstanding penalty imposed to year 2022 (provided that the taxpayer continues to comply with the payment of the principal tax amount to be paid).

(C) Extension of Time for Filing of Documents

An application for extension of time is allowed in respect of the submission of the following documents:

  • Statement of Monetary and Non-Monetary Incentive Payment to An Agent, Dealer or Distributor (CP58) which is due within the MCO 3.0 period;
  • Notice of Appeal to the Special Commissioners of Income Tax (Form Q) which is due within the MCO 3.0 period;
  • Documents required for tax audit or investigation which is due within the MCO 3.0 period;
  • Feedback to letters from the MIRB which is due within the MCO 3.0 period;
  • Country-by-Country Reporting where the financial year end falls within the MCO 3.0 period; and
  • Stamping of documents which are due within the MCO 3.0 period whereby the appeal must be made within 30 days from the date of the documents.

The application should be submitted with the relevant documents and the appeal will be considered based on merits of each case.

(D) No Extension of Time

No extension of time is granted for the following:

  • Filing of income tax return forms and payment of the balance of tax due for Year of Assessment ("YA") 2020 and YA 2021 in respect of companies, limited liability partnerships, unit trusts / property trusts, co-operative societies, trust bodies, real estate investment trusts / property trust funds and business trusts (the extension of time given under the return form filing programme remains i.e. a grace period of one month granted for e-filing (not applicable for Forms TR and TN) and 3 working days for manual filings made by post for Forms C1, TA, TC, TR and TN);
  • Tax estimate payments which are due in June 2021;
  • Tax instalments relating to audit and investigation which are due in June 2021;
  • Submission of Monthly Tax Deduction (“MTD”) data and MTD / CP38 payments for remuneration on employment which are due on 15 June 2021; and
  • Compounds which should be paid in June 2021.

(E) Tax Payment

An application for rescheduling of the tax instalment payments is allowed with the submission of the relevant documents such as cash flow documents.

The MIRB has set out in its media release that considerations for deferment of payment of penalties, rescheduling of payment of outstanding taxes and re-evaluation of penalties imposed will only be given to taxpayers affected by the COVID-19 pandemic and the implementation of MCOs. Taxpayers who are not affected should continue complying with their obligations as required under the existing rules.

A copy of the MIRB’s FAQs and medial release can be accessed via the above links.

Should you have any questions or require further clarification, please do not hesitate to email any of our Executive Directors, Directors, Associate Directors or Managers whom you are accustomed to dealing with or who are responsible for the tax affairs of your organization.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Regards,

Tai Lai Kok

Executive Director
Head of Tax

For more information on our core service offerings, please contact:

Petaling Jaya Office

Tai Lai Kok
Executive Director -
Head of Tax and Head of Corporate Tax
ltai1@kpmg.com.my
+ 603 7721 7020

Long Yen Ping
Executive Director -
Head of Global Mobility Services
yenpinglong@kpmg.com.my
+ 603 7721 7018

Bob Kee
Executive Director -
Head of Transfer Pricing
bkee@kpmg.com.my
+ 603 7721 7029

Ng Sue Lynn
Executive Director -
Head of Indirect Tax
suelynnng@kpmg.com.my
+ 603 7721 7271

Soh Lian Seng
Executive Director -
Head of Tax Dispute Resolution
lsoh@kpmg.com.my
+ 603 7721 7019

 

Outstation Offices

Penang Office

Kuching & Miri Office

Evelyn Lee
Executive Director -
Penang Tax
evewflee@kpmg.com.my
+604 238 2288 (ext. 312)

Regina Lau
Executive Director -
Kuching & Miri Tax
reglau@kpmg.com.my
+6082 268 308 (ext. 2188)

Kota Kinabalu Office

Johor Bahru Office

Titus Tseu
Executive Director -
Kota Kinabalu Tax
titustseu@kpmg.com.my
+6088 363 020 (ext. 2822)

Ng Fie Lih
Executive Director -
Johor Bahru Tax
flng@kpmg.com.my
+607 266 2213 (ext. 2514)

Ipoh Office

 

Crystal Chuah Yoke Chin
Tax Manager -
Ipoh Tax
ycchuah@kpmg.com.my
+605 253 1188 (ext. 320)