TaXavvy Issue 9/2018

In this issue:

Public Ruling 7/2018 - Accelerated Capital Allowance

Public Ruling 7/2018 - Accelerated Capital Allowance is an updated (second) edition of Public Ruling 4/2013 - Accelerated Capital Allowance. It explains the tax treatment of accelerated capital allowances for plant and machinery under various gazette orders which are in force and gazetted up to 2017.

Public Ruling 8/2018 – Tax Incentives for BioNexus Status Companies

Public Ruling 8/2018 – Tax Incentives for BioNexus Status Companies seeks to explain the 3 main types of incentives available to a BioNexus Status Companies approved by the Minister of Finance: i) Tax exemption on statutory income, ii) Further exemption on statutory income, and iii) Industrial building allowance.

Public Ruling 9/2018 - Taxation of Unit Holders of REITs / PTFs

Public Ruling 9/2018 - Taxation of Unit Holders of REITs / PTFs replaces Public Ruling 7/2012 - Taxation of Unit Holders of REITs / PTFs. The contents of the public ruling has been updated to reflect the amendments made to restrict the REITs / PTFs which are entitled to tax exemption to only those which are listed on Bursa Malaysia. This amendment came into effect from YA 2017.

Guideline on income tax exemption for religious institution or organisation

The IRB has issued a guideline on income tax exemption for religious institutions or organisations under the Income Tax (Exemption) Order 2017.

Income Tax (Exemption) (No.3) Order 2018

The Income Tax (Exemption) (No.3) Order 2018 (“the exemption order”) has been gazetted on 5 October 2018 and is effective for YA 2017 to YA 2020. The exemption order provides exemption on income of:

A International Currency Business Unit in an Islamic licensed bank or a licensed institution which carries on Islamic banking, or a licensed takaful operator,
A licensed international Islamic bank,
A licensed international takaful operator

which carries on a business in any currencies other than Ringgit Malaysia, and the account of investment made in Ringgit Malaysia relating to the business in any currencies other than Ringgit Malaysia.

Revised 2018 Filing Programme

The 2018 Filing Programme has been updated to specify that e-filing is available for Limited Liability Partnership, Trust Body and Unit Trust / Property Trust.

Stamp duty exemption orders

Two stamp duty exemption orders were recently issued to provide stamp duty exemption on instruments executed in relation to:

home financing facility granted under a state housing loan fund, and
restructuring or rescheduling of loans or financing executed under a debt management programme.

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