Latest Update on 2020 Tax Filing Programme and Wage Subsidy Programme

To Our Valued Clients

As expected by many, the Movement Control Order ["MCO"] period has been further extended, i.e. until 28th April 2020, as announced by the Government on 10th April 2020. At the same time, it is announced that additional sectors (e.g. construction, research and development, etc.) are allowed to operate during the MCO period (subject to approval by the Ministry of International Trade and Industry, upon application).

In this issue of update, we wish to highlight to you the updated Return Form Filing Programme for the Year 2020 (Amendment 2/2020) issued by the Inland Revenue Board ["IRB"] on 10th April 2020 as well as the Frequently Asked Questions ["FAQ"] on the Wage Subsidy Programme issued by Social Security Organisation on 7th April 2020.

Some of the pertinent updates from the above are as summarised below:-

1. The 2 months' extension of time from the statutory due date for filing of the income tax return form (i.e. Forms e-C, e-C1, e-PT, e-TA, e-TC, TR, TN) previously given to companies / co-operative societies / limited liability partnership / trust bodies with accounting period ended 31st July 2019 to 30th November 2019 is now expanded to include those with accounting period ended up to 31st December 2019. For instance, those entities with accounting year ended 31st December 2019 are granted grace period until 30th September 2020 to file the income tax return form.
2. One of the eligibility conditions to qualify for the Wage Subsidy Programme is that there must be 50% or more decline in revenue or income compared to January 2020 or the subsequent months. This requirement is now only applicable to employers having more than 75 employees. No such condition is to be applied to employers having not more than 75 employees.

The updated summary of some extended deadlines for submission of return forms and payment of tax during the MCO period is provided in the Appendix.

For further information, kindly refer to the following:-

i. Media Release on Permission to Operate Given to Additional Sectors;
ii. FAQ on the Wage Subsidy Programme;
iii. Updated Return Form Filing Programme for the Year 2020 (Amendment 2/2020);
iv. Our email of 21st March 2020 on IRB/RMCD's Response to COVID-19 and MCO;
v. Our email of 30th March 2020 on Prihatin Rakyat Economic Stimulus Package;
vi. Our email of 8th April 2020 on Latest Update on the IRB's Response to COVID-19 and MCO and Additional Measures for Prihatin Rakyat SME Economic Stimulus Package.

Please do not hesitate to contact us if you need any clarification on the foregoing.