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TITLE: Updated FAQs from IRBM in relation to The Extension of MCO Period up to 28 April 2020 and Practice No 2/2020 on Capital Allowance for Customised Computer Software

DATE: 22/04/2020

22 April 2020 Circular No. 45/2020
TO ALL ACCOUNTANTS
1. UPDATED FAQS DATED 16 APRIL 2020 IN RELATION TO THE TAX OPERATIONS OF THE IRBM DURING THE EXTENSION OF MCO PERIOD UP TO 28 APRIL 2020
Following the issuance of Circular No 42/2020 dated 15 April 2020, the Inland Revenue Board of Malaysia (IRBM) has uploaded the updated frequently asked questions (FAQs) during the Movement Control Order (MCO) period at Hasil website. The main amendment made in the updated FAQs dated 16 April 2020 is as follows:
C. Forms
 
8. Will extension of time be given to Labuan entities for the submission of irrevocable election form to be taxed under the ITA 1967 (Form LE3) where the due date is within the MCO period? Example 1:

Accounting period / basis period for a Labuan entity is 01/01/2020 – 31/12/2020. The due date for submission of Form LE3 for Year of Assessment 2021 (Year of Assessment 2020 under the ITA 1967) is on 31/03/2020.

Example 2:

Accounting period / basis period for a Labuan entity is 01/02/2020 – 31/01/2021. The due date for submission of Form LE3 for Year of Assessment 2022 (Year of Assessment 2021 under the ITA 1967) is on 30/04/2020.

If the due date for submission falls within the MCO period, extension of time will be given until 31 May 2020 for the submission of Form LE3 for Year of Assessment 2021 & Year of Assessment 2022.

The amendments are highlighted in red colour in the FAQs referred to in this Circular.
   
2. FAQS OF THE IRBM KUCHING BRANCH IN RELATION TO THE SERVICES OF REGISTRATION AND RENEWAL OF BUSINESS LICENCE THROUGH APPOINTMENT STARTS FROM 20 APRIL 2020
  On 17 April 2020, the IRBM Kuching office issued the updated FAQs in relation to the services of registration and renewal of business licence through appointment starts from 20 April 2020 until the MCO period ends.
  The FAQs can be downloaded at the link below:  
  http://lampiran1.hasil.gov.my/pdf/pdfam/faq_caw_kuching_1.pdf 
   
3. PRACTICE NOTE NO 2/2020 - CLAIMING CAPITAL ALLOWANCE ON THE DEVELOPMENT COST FOR CUSTOMISED COMPUTER SOFTWARE UNDER THE INCOME TAX RULES 2019
On 9 April 2020, the IRBM uploaded Practice Note No 2/2020 dated 16 March 2020 onto the Hasil website. This Practice Note No 2/2020 provides guidance on the implementation of P.U.(A) 274/2019 - Income Tax (Capital Allowance) (Development Cost for Customised Computer Software) Rules 2019 in respect of the development cost for customised computer software which qualifies for the purpose of claiming capital allowance effective from year of assessment (YA) 2018.
The details of the Practice Note is enclosed with this Circular and can also be downloaded at the link below:
  http://lampiran1.hasil.gov.my/pdf/pdfam/PN_2_2020.pdf 
   
   
Please be guided accordingly.
 
DR. NURMAZILAH DATO MAHZAN
Chief Executive Officer
 

Description:FAQs_Updated Version_16 April 2020
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Description:FAQ_IRBM_Kuching branch
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Description:PN_2_2020_Claiming CA on th Dev Cost for Customised Computer Software
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