TaXavvy Issue 09/2021

In this issue:

FAQ on tax deduction of renovation and refurbishment cost

Following the issuance of the Income Tax (Costs of Renovation and Refurbishment of Business Premise) Rules 2020, the Inland Revenue Board (IRB) has issued a FAQ for the tax deduction under the Income Tax (Cost of Renovation and Refurbishment of Business Premise) Rules 2020.

Income Tax (Exemption)(No. 2) Order 2021 (Sukuk Prihatin)

The Income Tax (Exemption)(No. 2) Order 2021 has been gazetted and is effective from year of assessment 2020. It provides income tax exemption on gains or profits (in lieu of interest) derived from Sukuk Prihatin issued in accordance with the principle of Murabahah by the Government on 22 September 2020.

Labuan - Extension of time for submission of statutory declaration and return of profits YA 2021

The IRB Labuan branch has issued a letter dated 11 March 2021 to the Association of Labuan Trust Companies on extension of time for Labuan entities for submission of statutory declaration and return of profits under the Labuan Business Activity Tax Act 1990.

Special Investment Tax Allowance for the Electrical & Electronics sector - MIDA Guideline

In Budget 2020, it was announced that a special Investment Tax Allowance will be granted to companies in the Electrical & Electronics sector which have exhausted their eligibility for reinvestment allowance. MIDA has now issued the guidelines for Special Investment Tax Allowance for the Electrical & Electronics sector.

Other developments

• Media Statement by SOCSO on PEMERKASA initiatives

• Employee benefits in relation to smartphone, tablet or computer

• Extension of tax incentive for Returning Expert Programme