Latest Update on FAQ on Tax Matters during the MCO Period - In Response to the Extension of MCO Period until 12th May 2020

30 April 2020

To Our Valued Clients

In response to the extension of Movement Control Order ["MCO"] period until 12^th May 2020, the Inland Revenue Board ["IRB"] has on 28^th April 2020, updated the Frequently Asked Questions ["FAQ"] on Tax Matters During the MCO Period (18^th March 2020 to 12^th May 2020) as well as the Return Form Filing Programme for the Year 2020 (Amendment 3/2020) to update the tax filing due dates and other operational matters.

The important update provided in the above updated FAQ / Return Form Filing Programme for the Year 2020 is the revised extension of time allowed for filing of income tax return form ["ITRF"] in respect of:-

➢

Companies / Co-operative Societies / Limited Liability Partnerships / Trust Bodies (i.e. Forms e-C, e-C1, e-PT, e-TA, e-TC, TR, TN)

ITRF for the year of assessment ["YA"] 2019

•	2 months' extension of time from the statutory due date is given to those entities with accounting period ended 31^st July 2019 to 31^st August 2019
•	3 months' extension of time from the statutory due date is given to those entities with accounting period ended 1^st September 2019 to 31^st December 2019

ii.

ITRF for the YA 2020

•	2 months' extension of time from the statutory due date is given to those entities with accounting period ended 1^st January 2020 to 31^st March 2020

As regards sales tax and service tax, Royal Malaysian Customs Department ["RMCD"] has on 29^th April 2020 announced that payment for sales tax and service tax which is due on 31^st March 2020 and 30^th April 2020 is further extended until 31^st May 2020. In the event that any late payment penalty is imposed on the payment which is made during the permissible extended period (i.e. on or before 31^st May 2020), such penalty will be remitted in full by RMCD.

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

In addition, the IRB has issued the FAQ on Special Deduction for Corporate Taxpayers and Other Taxpayers on Rental Reduction Offered to Small and Medium Enterprises Tenants. The contents of the said FAQ are substantially the same as the earlier FAQ (in Bahasa Malaysia) on the same topic made available by the Ministry of Finance.

For further information, kindly refer to the following:-

i.	FAQ on Tax Matters during the MCO Period (18^th March 2020 to 12^th May 2020) - Updated on 28^th April 2020;
ii.	Return Form Filing Programme for the Year 2020 (Amendment 3/2020) - Updated on 28^th April 2020;
iii.	Notification of Operations and Services of the RMCD within the Extended Period of Implementation of the MCO published on 29^th April 2020;
iv.	FAQ on Special Deduction for Corporate Taxpayers and Other Taxpayers on Rental Reduction Offered to Small and Medium Enterprises Tenants - Updated on 28^th April 2020; and
v.	Our email of 23^rd April 2020 on Updates on Special Deduction for Reduction of Rental.

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