NEWS

 

TITLE: Updates from IRBM and RMCD in relation to the Extension of MCO up to 28 April 2020 and Return Form Filing Programme for the Year 2020 (Amendment No 2/2020)

DATE: 15/04/2020

15 April 2020 Circular No. 42/2020
TO ALL ACCOUNTANTS
1. UPDATED FAQS IN RELATION TO THE TAX OPERATIONS OF THE IRBM DURING THE EXTENSION OF MCO UP TO 28 APRIL 2020
Following the issuance of Circular No 27/2020 dated 27 March 2020, the Inland Revenue Board of Malaysia (IRBM) has uploaded the updated frequently asked questions (FAQs) at Hasil website. The main amendments made in the updated FAQs dated 10 April 2020 are as follows:
A. General
 
No Question Feedback
5. Will extension of time be given for the submission of the audited accounts by the institution or organisation approved under section 44(6) of the ITA 1967? Yes. Extension of time will be given until 30 June 2020.
C. Form
 
1. Will IRBM provide extension of time for the submission of return forms either manually or e-Filing?
 
Extension of time will be provided as stated in the 2020 Return Form Filing Programme (Amendment 2/2020).

http://lampiran1.hasil.gov.my/pdf/pdfam/Program
MemfailBN_2020_Pin.2_1.pdf

 
10. Will IRBM provide extension of time for the submission of Application Form of an Approved Research and Development (R&D) Project under section 34A ITA 1967 (Borang 1)? The due date for submission of the completed Borang 1 (New Project/Extension Project) which ends on 31 March 2020: Extension of time will be given until 30 June 2020.

The due date for submission of the completed Borang 1 (New Project/Extension Project) which ends on 30 April 2020: Extension of time will be given until 30 June 2020.
 
D. Payment
    (i)   Income Tax Estimates (CP204)

 
7. What are the sources of data that will be used by the IRBM in order to determine whether the SMEs qualify for the deferment of estimated tax payment? The sources of data that will be used by the IRBM in order to determine whether the SMEs are qualify for the deferment of estimated tax payment is based on YA 2018 Return Form received by the IRBM.
 
8. Would additional criteria such as Paragraph 2A and 2B, Schedule 1, ITA 1967 be applicable for a business to qualify as SME for this deferment of instalment payment purpose?
 
No. For this purpose, businesses just need to fulfil the criteria as mentioned in question D6.
    (i)   Payment of Income Tax – General
 
18. Can taxpayer choose to reject the automatic deferment of tax estimates payment and continue payments based on the original payment schedule? If so, does the taxpayer need to notify the IRBM?
 
Yes. Taxpayer can reject and continue paying tax estimates based on the original payment schedule without having to inform the IRBM.
19. Will the IRBM issue a notification to the taxpayers who are entitled for deferment of tax estimates payment? Yes. The IRBM will notify taxpayers who are entitled for deferment of tax estimates payment by e-mail registered with IRBM in the near future. If the taxpayer is entitled to a deferment based on the criteria outlined in answer No. 6 (Part D) above but has not yet received the e-mail, the taxpayer will not have to make a payment for the instalment which is due on 15 April 2020.
 
20. Can a taxpayer make an appeal if it is found that the company is eligible for deferment of tax estimate based on the current situation of the company? Yes. Taxpayers can appeal by letter / e-mail to the Records Management and Taxation Information Division. A notification e-mail will be issued if the appeal is approved.
 
27. Will IRBM defer the tax refund process? Tax refunds will be processed as usual. However, in an ongoing audit case, taxpayers are required to submit the supporting documents as requested within the MCO period for the purpose of tax refund.
 
The respective grace periods stated in the FAQs dated 3 April 2020 are also amended respectively in accordance with the extension of MCO of 2 weeks up to 28 April 2020. The updated grace periods are highlighted in red colour in the FAQs referred to in this Circular which also can be downloaded at the link below:
  http://lampiran1.hasil.gov.my/pdf/pdfam/faq_2.pdf
2. RETURN FORM FILING PROGRAMME FOR THE YEAR 2020 (AMENDMENT NO 2/2020)
  The IRBM has amended the Return Form Filing Programme for the Year 2020 (Amendment No 1/2020) dated 21 March 2020 to include the grace period of 2 months allowed for the submission of tax returns with the financial year ended 31 December 2019 and also the payment of the balance of tax payable.
  The details of the Return Form Filing Programme for The Year 2020 (Amendment No 2/2020) can be downloaded at the link below:
  http://lampiran1.hasil.gov.my/pdf/pdfam/ProgramMemfailBN_2020_Pin.2_1.pdf
   
3. NOTIFICATION OF THE OPERATIONS AND SERVICES OF THE RMCD DURING THE EXTENSION OF MCO UP TO 28 APRIL 2020
On 14 April 2020, the Institute received the notification of the operations and services of the Royal Malaysian Customs Department (RMCD) during the extension of MCO up to 28 April 2020.
  The RMCD has decided that a full remission of penalty will be given to the following payments of indirect taxes to be received by the RMCD through the respective statements/forms before 13 May 2020:
1) Sales and Service Tax (SST-02 statement)
2) Imported Service Tax (SST-02A form)
3) Tourism Tax (TTx-03 statement)
4) Departure Levy (DL-02 statement)
  The applicable taxable periods are as follows:
 
Taxable period ended on Actual date of payment Payment received before 13 May 2020
29 February 2020 31 March 2020 Full remission of penalty
31 March 2020 30 April 2020 Full remission of penalty
  The details of the said notification is enclosed with this Circular.
   
Please be guided accordingly.
 
DR. NURMAZILAH DATO MAHZAN
Chief Executive Officer
 

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